Mideast Stocks: Most Gulf Markets Retreat As Saudi and UAE Clash Over Yemen

Gulf equity indexes mostly ended lower on Tuesday as tension ‍flared between ‍regional oil powers and neighbours Saudi Arabia and the United ​Arab Emirates.

Dubai's main share index retreated 2%, LSEG data showed, while Abu Dhabi's ⁠main index and Saudi Arabia both dropped 1% each.

The Dubai index saw its ​biggest daily decline since June. Blue-chip developer Emaar Properties fell 2.8% and sharia-compliant lender Dubai Islamic Bank lost 2.3%. 

Among Saudi shares, Saudi Arabian Mining Co slipped 2.6% and Al Rajhi Bank eased 0.3%. Oil giant Saudi Aramco was down 0.3%.

Oil prices - a catalyst for the Gulf's financial markets - were little changed as investors took stock of dented hopes of a Russia-Ukraine peace deal and rising geopolitical tensions in the Middle East around Yemen.

The Qatari index finished flat. Bahrain bucked the ⁠trend with a 0.6% rise after the country ‌announced several fiscal reform measures on Monday.

Outside the Gulf, Egypt's blue-chip index edged 0.1% lower.

Saudi Arabia dropped 1% to 10,382

Abu Dhabi declined 1% to 9,964

Dubai retreated 2% to 6,015

Qatar finished ‌flat at 10,794

Egypt eased 0.1% ⁠to 41,690

Bahrain gained 0.6% to 2,077

Oman fell 0.6% to 5,860

Kuwait lost 1.3% to 9,444