Saudi Stocks Lead GCC Rally As Oil, Earnings Lift Markets

RIYADH: Saudi Arabia’s stock market led Gulf peers higher in August, with the Tadawul All Share Index gaining 5.1 percent as stronger oil prices, corporate earnings and stabilizing regional conditions supported investor sentiment. 

The advance made the Tadawul the best-performing Gulf Cooperation Council benchmark for the month and lifted its 2026 gain to 6.1 percent. The MSCI GCC Index rose 3.9 percent, its strongest monthly performance in seven months, ending a three-month losing streak, according to the latest report from Kamco Invest. 

Oman and Kuwait followed Saudi Arabia with gains of 4.5 percent and 1.6 percent, respectively, while Qatar and Bahrain bucked the trend, slipping 1.1 percent and 1 percent as investor sentiment remained cautious. 

The August rebound came after three consecutive months of declines for the MSCI GCC Index, with regional markets regaining ground as geopolitical conditions stabilized and second-quarter earnings provided additional support.  

Volatility in the oil market underpinned much of the regional narrative. 

The US Energy Information Administration raised its forecast for Brent crude to about $85 a barrel for the third quarter, $11 higher than its previous estimate, citing continued disruptions to oil shipments through the Strait of Hormuz and their impact on global inventories. 

Kamco Invest attributed the regional rally to a “stabilizing geopolitical situation in the region, volatile but elevated oil prices due to the closure of the Strait of Hormuz as well as the Q2 earnings season,” noting Brent briefly touched $94 a barrel during the month before settling above $90 at month-end. 

Tadawul climbs 

The Tadawul All Share Index breached the 11,000-point mark for the first time in months, closing at a four-month high of 11,127.1 points.

 Financial services led sector gains with a 9 percent rise, followed closely by consumer services and capital goods, both up 8.9 percent. 

Banking stocks such as Banque Saudi Fransi, Saudi National Bank and Alinma Bank posted double-digit monthly gains, while Saudi Aramco shares slipped 1.2 percent despite the late-month oil price recovery. 

Gulf markets 

Regional sector performance was broadly positive, with hotels and leisure up nearly 10 percent, and materials and insurance gaining 8.2 percent and 7.5 percent, respectively. Large-cap sectors including telecom and banks rose 5 percent and 4.7 percent, while energy lagged with a modest 1.2 percent gain.  

Abu Dhabi’s FTSE ADX added 0.9 percent, its third straight month of growth, led by healthcare and industrials. Dubai’s DFM edged up 0.7 percent on strength in materials and consumer discretionary. Oman’s MSX 30 surged 4.5 percent, pushing its year-to-date return to 29.6 percent, the strongest in the GCC.  

Global backdrop 

Global equities also advanced, with the MSCI World Index up 2.6 percent. The S&P 500 touched a record high by mid-month before paring some of its gains toward month-end, while comments from the Federal Reserve chair about a possible rate hike in September sent bond yields to their highest level since 2008 by month-end.