Mideast Stocks: Most Gulf Markets Finish Higher, Though US-Iran Uncertainty Keeps Trade Cautious

Most Gulf stock markets closed higher on Monday, although uncertainty surrounding U.S.-Iran talks kept investors ​cautious and trading subdued. ⁠In the UAE, shares gained support after the announcement of a new national ‌fund. Hopes for renewed diplomacy faded over the weekend after U.S. President Donald Trump cancelled a planned visit by ​his envoys to Islamabad on Saturday.

Trump said Iran could make contact if it wanted to negotiate an end ​to the ​two-month war, while insisting Tehran must never acquire a nuclear weapon. Iran said the U.S. would have to remove barriers to any deal, including its blockade of Iranian ⁠ports.

Iranian Foreign Minister Abbas Araqchi, meanwhile, is in Russia to seek support from President Vladimir Putin.

Saudi Arabia's benchmark index rose 0.4%, with petrochemical maker Saudi Basic Industries climbing 4.8%. Oil major Saudi Aramco added 0.5%. The Brent crude benchmark was up 96 cents, or 0.9%, at $106.29 a barrel by ​1212 GMT.

However, Saudi ‌Tadawul Group declined ⁠3.7%, following a ⁠steep drop in quarterly profit. Geopolitical conditions have improved compared with the previous month, but limited visibility on what ​comes next, along with the continued closure of the Strait of ‌Hormuz, may keep investors cautious, said Joseph Dahrieh, Managing ⁠Director at Tickmill. Strong local fundamentals continue to support sentiment and may help regional stock markets extend their recovery, he said.

The Qatari index fell 0.3%, with Qatar National Bank — the Gulf's biggest lender by assets — losing 0.9%.

Dubai's main share index added 0.3%, led by a 0.8% rise in blue-chip developer Emaar Properties and a 1.3% advance in toll operator Salik. In Abu Dhabi, the index rose 0.4%, with Alpha Dhabi Holding advancing 2.8%.

In the UAE, Prime Minister Sheikh Mohammed bin Rashid Al Maktoum on Sunday announced the country will establish a 1 billion ‌dirham ($272.26 million) national fund to strengthen industrial resilience.

According to the ⁠prime minister, the fund will support the localisation of strategic industries, ​bolster supply-chain resilience and speed up the adoption of artificial intelligence in production, operations and planning. Outside the Gulf, Egypt's blue-chip index closed 0.6% higher.

Saudi Arabia rose 0.4% to 11,169

Abu Dhabi was up 0.4% to 9,848

Dubai added ​0.3% to 5,871

Qatar dropped ‌0.3% to 10668

Egypt up 0.6% to 52,719

Bahrain gained 0.8% to 1,952

Oman added 0.2% to ⁠8,140

Kuwait fell 0.2% to 9,543