Mideast Stocks: Saudi Stocks Dip on Profit-Taking; UAE and Qatar Fall Amid Broad Weakness

The Saudi stock market edged lower on Thursday as investors locked in profits from the previous day's strong rally, driven by news of potential reforms to foreign ownership rules, while markets in UAE and Qatar extended losses on broad weakness. Saudi's benchmark index slipped 1%, retreating from its largest single-day gain in over five years recorded on Wednesday.

However, the gauge notched a third straight weekly rise, bolstered by strength in financial stocks. 

The Saudi markets regulator is considering lifting the current 49% cap on foreign ownership of listed companies, "a move that could unlock over $10 billion in foreign inflows and prompt MSCI to raise the Foreign Inclusion Factor for Saudi stocks," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

Shares of Saudi Aramco declined nearly 3%. Aramco's talks to acquire a minority stake in Spanish energy firm Repsol's renewables unit has hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters. Index heavyweights Saudi Telecom and SABIC fell 4.2% and 4.1%, respectively.

However, the market's outlook appears optimistic, driven by robust momentum in the non-oil private sector, though oil price volatility continues to weigh on sentiment, according to Milad Azar, Market analyst at XTB MENA.

Dubai's main share index erased early gains to close down 1% for the third straight session. Emaar Properties fell 1.5%, extending its losing streak, while banking stocks like Dubai Islamic Bank and Emirates NBD Bank dropped 1.6% and 1.2%, respectively.

Abu Dhabi's index also surrendered early advances, ending the session 0.3% lower, weighed down by a nearly 1% decline in Aldar Properties. Shares of Space42 fell 1.6% after announcing a partnership with Dynamic Map, a unit of Japan's Dynamic Map Platform, to supply HD Map Data for General Motors' Super Cruise in the UAE.

Abu Dhabi National Oil Company's (ADNOC) international investment arm, XRG, announced the acquisition of an 11.7% equity stake in Phase 1 of the Rio Grande LNG project, marking its first U.S. gas investment. Additionally, ADNOC signed a 20-year LNG offtake deal for 1.9 million tonnes per annum from Rio Grande LNG Train 4.

Qatar's stock index dropped 1.1%, marking five straight sessions of declines and wrapping up the week lower, dragged down by banking shares. Qatar National Bank, the region's largest lender, dropped 3%, building on two days of losses, while Qatar Islamic Bank lost 1.3%.

Separately, Qatar Investment Authority (QIA) and US-based Blue Owl Capital have partnered to launch a $3 billion global digital infrastructure platform focused on data centers, as QIA deepens investments in AI-related sectors amid rising demand for data storage and computing power.

Outside the Gulf, Egypt's blue-chip index declined 0.8%, reversing gains from the previous session. Despite the dip, the index ended a positive week, hitting last month's peak level. Consumer staples led the decline, with Eastern Company sliding over 3%.

SAUDI ARABIA fell 1% to 11,308

ABU DHABI dropped 0.3% to 9,946

DUBAI declined 1% to 5,817

QATAR slipped 1.1% to 10,959

EGYPT shed 0.8% to 35,671

BAHRAIN added 0.2% to 1,952

OMAN was flat at 5,117

KUWAIT lost 0.3% to 9,365