(MENAFN- TRACCS) Kuwait, 05 October 2025: Kuwait Financial Centre “Markaz” released its Monthly Market Review report for September 2025. Kuwait equity market gained in September 2025, supported by positive economic outlook and decline in interest rates. Meanwhile, Oil prices declined for the month amid concerns over increase in pace of reversal of OPEC+ production cuts from November.
Kuwait equities continued to demonstrate strong performance among GCC markets on YTD basis (19.5%) as of September 2025. Kuwait’s All Share Index gained 3.5% during the month, with both premier and main market indices registering gains. Sector-wise, Healthcare and Real Estate were the top gainers, rising 18.3% and 6.1% respectively. The banking sector index rose by 3.1% for the month. Among banking stocks, Commercial Bank of Kuwait and National Bank of Kuwait were top gainers, rising 6.0% and 3.9% respectively during the month. Commercial Bank of Kuwait disclosed execution of off-market trades on about 58.4 million shares, at price of KD 0.5 per share, in September 2025. Among Premier Market stocks, IFA Hotels and Resorts Company and GFH Financial Group were the top gainers, rising 28.8% and 20.3% respectively during the month. IFA Hotels and Resorts has reported by purchase of about 5.5 million of its shares by Kuwait Real Estate Company during the month, over multiple transactions.
Kuwait’s real GDP growth estimate for 2025 has been revised up to 2.6% y/y by IMF, up from its earlier forecast of 1.9% y/y in April 2025. The agency has cited an increase in oil production amid unwinding production cuts and strong private domestic spending as factors contributing to improved outlook. Concurrently, Central Bank of Kuwait lowered its policy rate by 25 bps to 3.75% in September 2025, following rate cut of same magnitude by the U.S Fed. It is the central bank’s first rate cut in the past year.
The S&P GCC Composite index gained 4.1% in September 2025, with most GCC markets closing the month in green. Saudi Arabia’s equity index surged 7.5% during the month, amid reports that the Capital Markets Authority is considering allowing foreign investors to own majority stakes in listed companies. This is the index’s largest monthly increase since January 2022, with a decline in interest rates and positive economic data lending additional support to the markets. Among Saudi blue chips, Saudi Arabian Mining Company increased by 24.4% during the month. Ma'aden plans to double gold production by 2030 to create an integrated supply chain for rare minerals. Abu Dhabi’s equity index decreased by 0.8% in September 2025. First Abu Dhabi Bank (UAE) declined by 5.8% while Emirates Telecommunications Group Company (UAE) rose by 4.2% during the month. Dubai’s equity index closed 3.7% lower for the month, weighed by performance of blue-chips. Emaar Properties (UAE) declined by 9.4% for the month, while Emirates NBD (UAE) declined by 3.8%. Dubai’s ALEC Holdings, a diversified engineering and construction group, has initiated its IPO process during the month. The company had initially announced a price range of AED 1.35 and AED 1.40 per share, implying market capitalization between AED 6.75 billion (USD 1.84 billion) and AED 7 billion (USD 1.91 billion). The final offer price announced on 1st October 2025, was AED 1.40.
Saudi Arabia’s real GDP grew by 3.9% y/y in Q2 2025, supported by 4.6% growth in non-oil sector and 3.8% increase in oil sector. The country’s industrial production increased by 6.5% y/y in July, driven by solid gains in manufacturing and mining. The UAE’s real GDP grew by 3.9% y/y in Q1 2025, with non-oil sector registering growth of 5.3% y/y. Central banks of GCC countries lowered interest rates by 25 bps, following the rate cut by the U.S Fed during the month.
Global markets were positive during September 2025, supported by the U.S Fed rate cuts. The MSCI World and S&P 500 indices rose by 3.1% and 3.5% respectively for the month. U.S Fed lowered interest rates by 25 bps during the month, citing emerging signs of weakness in labour markets. Nasdaq Composite index rose 5.6% during the month, supported by positive developments among tech companies. Nvidia announced the launch of a new AI chip with an investment of USD 100 million and a revenue potential of USD 5 billion. Tesla’s CEO Elon Musk disclosed that he had bought USD 1 billion worth of the company's stock during the month. Also, Google and Apple benefited from the court ruling allowing continuation of the search deal between the companies. MSCI EM index gained 7.0% during the month, supported by 6.6% increase in Taiwan’s TAIEX Index (MSCI EM Weightage: 19.05%) and 7.5% increase in South Korea’s KOSPI index (MSCI EM Weightage: 10.64%). While Taiwan’s markets were supported by sustained strong demand for AI chips, South Korean markets were supported by policy developments such as reversal of plans to raise taxes on stock investments and measures to ease housing shortage. China and India also gained during the month, registering an increase of 0.7% and 0.6% respectively. Chinese markets were supported by domestic liquidity even as economic concerns persist.
U.S inflation was at 2.9% y/y in September 2025, up by 2 percentage points compared to July 2025, driven by a rise in prices of food, shelter and energy. The U.S labor market added 22,000 jobs in August, down from 79,000 job additions in July 2025. Its unemployment rate in August 2025 was at nearly a 4-year high of 4.3%. Revised employment data for June 2025 also indicated decline of 13,000 jobs, marking the first drop since December 2020. U.S’ GDP growth in Q2 2025 was revised up to 3.8% y/y, up from 3.3% estimated in August 2025, based on falling imports and strong consumer spending.
The yield on the 10-year US treasury notes declined by 7 bps during the month to 4.16%. The yields had declined to 4.01% by 11th September 2025 as reports indicating weakness in labor market increased the expectation of rate cut by the U.S Fed during the month. However, yields climbed back later in the month, following better-than-expected economic data and hawkish commentary from the U.S Fed.
Oil (Brent) prices closed the month at USD 67.0 per barrel, declining by 1.6% during the month. Ukraine’s drone attacks on Russia’s energy infrastructure and the heightened geopolitical tensions in the Middle East raised concerns over disruptions in oil supply, leading to increase in the commodity’s prices earlier in the month. OPEC+ continued unwinding production cuts, albeit at a slower pace. OPEC+ plans to increase production by 137,000 bpd in October, down from the monthly increases of 555,000 bpd in both September and August and 411,000 bpd in both July and June. However, reports of an accelerated reversal of production cuts by OPEC+ in November weighed oil prices towards the month’s end.
While the U.S Fed’s dot-plot, published in September 2025, indicated two additional rate cuts in 2025, hawkish comments from the central bank towards the end of September have dampened the outlook on further cuts. Amid ongoing tariff announcements, data on inflation and the labor markets and U.S Fed’s policy meeting in October would continue to be key market movers. While ongoing reversal of production cuts and positive non-oil economic growth are favoring GCC markets, further decline in interest rates would lend additional support to the markets.

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