Dubai, UAE – Most stock markets in the Gulf ended higher on Thursday, as investors cautiously shrugged off concerns over US President Donald Trump’s tariff threats and the Federal Reserve’s dovish stance. Despite uncertainties, the region’s business sector remained resilient, with key indices posting gains.
US Tariffs and Market Reaction
President Trump’s recent tariff announcements have sparked unease in global markets. The proposed tariffs target a broad range of imports, including:
Pharmaceuticals
Semiconductor chips
Lumber
Automobiles (set to take effect on April 2, 2025)
While some analysts fear an all-out trade war, others view Trump’s aggressive approach as a high-stakes negotiating tactic aimed at securing better trade agreements.
Gulf Stock Market Performance
Most Gulf markets ended on a positive note despite global trade tensions:
Saudi Arabia’s Tadawul Index rose 0.5%, driven by gains in banking and energy stocks.
Dubai Financial Market (DFM) advanced 0.4%, buoyed by real estate and tourism stocks.
Abu Dhabi Securities Exchange (ADX) climbed 0.6%, supported by telecom and financial shares.
Qatar Stock Exchange gained 0.3%, as investors focused on blue-chip stocks.
Federal Reserve’s Dovish Stance
Minutes from the latest Federal Reserve policy meeting indicated a cautious approach to interest rate changes, citing concerns over inflation and global trade uncertainty. The Fed's stance suggests that rate cuts may not happen until late 2025, further influencing market sentiment worldwide.
"The Fed will likely wait for some of the dust to settle on tariffs before providing better forward guidance. We now anticipate only one rate cut in December," said Ryan Sweet, Chief US Economist at Oxford Economics.
Sector Highlights in Gulf Markets
Dubai Taxi Co. (DFM:DTC) announced plans to distribute its first annual dividend after reporting a strong year-over-year revenue increase. The company’s shares, however, dipped 1.455%.
Palms Sports (ADX:PALMS) signed a 40 million-Emirati-dirham contract to provide martial arts training services for a government entity over two years. The stock fell 9.797%.
Alpha Data IPO Update: Abu Dhabi-based IT firm Alpha Data has set a price range of 1.45–1.50 dirhams per share for its IPO, with a final offer price announcement expected on February 26.
Oil Market and Economic Impact
Oil prices remained volatile amid speculation that Kurdistan oil exports may resume soon. Any shifts in crude oil prices could directly impact Gulf economies, especially for major producers like Saudi Arabia and the UAE.
Outlook: What’s Next for Gulf Investors?
While US tariff uncertainty remains a concern, Gulf markets appear to be navigating the turbulence with resilience. Investors are advised to monitor developments in US trade policy, Federal Reserve signals, and regional economic indicators.
Source: Brecorder
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