Gulf bourses retreat as bank stocks ease on Yemen, Iran war worries

Gulf share markets fell on Thursday as renewed fighting in Yemen and stalled diplomatic efforts unsettled investors, Business Recorder reported. Saudi Arabia’s benchmark lost 1%, while Dubai’s index declined 0.5% and Abu Dhabi’s dropped 1.2%; Qatar’s market was down 0.7%.

Bank shares were among the main drags: Al Rajhi Bank fell 1.1% and Saudi National Bank slipped 1.9%, while First Abu Dhabi Bank shed 4.2% despite reporting a 6% increase in third-quarter net profit. Saudi Aramco edged down 0.3%, and Air Arabia dropped 4.9%. Saudi Arabia’s index nevertheless recorded a weekly advance, ending an eight-week run of declines.

The report linked investor caution to attacks around Yemen, concern over possible military action and risks to energy supply routes. Diplomacy remained unresolved, with an Iranian official describing a proposal presented by Qatari mediators as unacceptable; Egypt’s blue-chip index rose 0.6%.