Saudi Stocks Plunge, Other GCC Markets Set To Open In Negative Territory

2026-03-01 06:49:24

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid Israeli, US strikes on Iran for the latest regional developments.]

Saudi Arabia's stock markets plunged on Sunday amid volatility due to the ongoing US-Iran military conflict.

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Saudi Arabia's Tadawul All-Share Index plunged 2.67 per cent on Sunday, led by Elm Co., Flynas, Shaker Group, and Tourism Enterprise Co., while top gainers were Al Rajhi Takaful, Saudi Aramco, Lazurde, Amak, and Herfy Foods.

Meanwhile, Kuwait suspended trading on Sunday, March 1, due to the war in the region. The trading will remain suspended until further notice.

“Based on the decision of the Board of Commissioners of the Capital Markets Authority, and due to the exceptional circumstances, the country is currently experiencing Boursa Kuwait announces the suspension of trading effective Sunday, 01-03-2026, until further notice,” Boursa Kuwait said in a statement posted on its website.

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Kuwait was hit by Iranian missiles and drones on Saturday, damaging many properties in the kingdom. As a precautionary measure, the government decided to suspend trading until the situation stabilizes in the region.

Qatar Stock Exchange was closed for a holiday. The UAE stock markets will open tomorrow for trading.

Buying defence stocks

The other GCC stock markets are expected to see limited declines in the initial sessions and trade in a narrow range amid ongoing US-Iran military conflict.

Analysts believe that investors will be gravitated towards defensive stocks with stable dividend yields until regional geopolitical situation stabilises.

“Equity markets in the UAE and across the Gulf are likely to react to recent developments with a high degree of caution, potentially registering limited declines in the initial sessions, which would not exceed 1 per cent to 1.5 per cent,” said Rania Gule, senior market analyst for Mena at xs.

She said any pullback would primarily reflect the prevailing global risk-off sentiment rather than signaling underlying weakness in local economic fundamentals.

“What distinguishes Gulf markets in this context is the strength of government balance sheets, elevated oil revenues, and flexible fiscal policies, all of which help reduce the likelihood of a geopolitical shock evolving into a broader financial crisis. Moreover, certain sectors – almost notably energy – could act as a stabilizing force should oil prices remain at elevated levels,” added Gule.

In the short term, Rania Gule expects markets to trade in a narrow and volatile range, with investors gravitating toward defensive stocks and those offering stable dividend yields, as they await greater clarity on the regional and political outlook.

Flexible and liquid portfolio

She advised investors to restructure their portfolios around flexibility and liquidity, rather than short-term forecasts.“Thoughtful diversification, reducing exposure to high-risk assets, and strengthening hedging strategies are all essential components for navigating this phase at the lowest possible cost. This is not a period for aggressive accumulation, but rather a phase focused on capital preservation and waiting for clearer visibility,” she added.

“In such environments, history shows that the most successful investors are not those who move ahead of the market, but those who understand risk deeply and respond with discipline and strategic patience,” Gule concluded.