GCC equity markets witnessed the biggest monthly decline in 10 months in September-2026 due continuing war in the Middle East as well as attacks on Saudi Arabian oil facilities that pushed crude oil prices to the highest level in almost four months. 

The MSCI GCC index declined by 3.5%, the biggest decline since November-2025, said Kamco Invest, a regional non-banking financial powerhouse headquartered in Kuwait. 

The decline was led by a broad-based fall in almost all markets across the GCC as well as in key global economies. Saudi Arabia’s TASI showed the biggest monthly decline in the GCC by falling 6.2% during the month reaching the lowest level since the start of the war. 

UAE market gains

Qatar was next with a decline of 5.7% while Bahrain, Kuwait and Oman registered relatively smaller declines. On the other hand, UAE markets showed gains during the month, defying the broader trend. DFM climbed 2.1% while Abu Dhabi registered a smaller gain of 0.6%. With the monthly decline in September-2026, the MSCI GCC index now shows a decline in terms of both YTD and Q3 performance. 

In terms of monthly sector performance, almost all GCC sectors showed a decline during September-2026. The Consumer Durables & Apparels sector showed the biggest decline of 12.4% followed by F&B and Materials with declines of 9.7% and 7.8%, respectively. Banks and Energy also showed declines of around 2%. The gainers side, meanwhile, included only the Real Estate index with a gain of 0.6%.

Brent futures prices touched $109/b by mid-month and receded only partially to close with a gain of over 14% despite resumption of Saudi exports pipeline after reports showed that the Iran/US war could go beyond the midterm elections in the US. 

In addition, expectations of higher for longer interest rates also fuelled a broad-based decline in asset classes across the board globally with 10-Y bond yields touching 5.24% during the last week. However, rates receded slightly and global markets edged up on the last day of the month following reports showing improving consumer spending in the US and core PCE came in lower than expected for August-2026.

Kuwait: Kuwaiti equity benchmarks declined in September 2026 amid regional geopolitical tensions, oil-price volatility and supply concerns. The All-Share Index fell 1.33%, while the Main Market and Premier Market indices declined 1.5% and 1.3%, respectively; the Main 50 Index recorded the sharpest fall of 7.1%. Eleven of 13 sector indices declined, led by Technology (-50.1%), Consumer Staples (-7.4%) and Utilities (-3.6%), while Insurance (+11.0%) and Health Care (+4.5%) gained. Trading activity strengthened, with volumes rising 42.2% to 9.3 billion shares and value traded increasing 37.7% to KWD 2.4 billion. The Central Bank of Kuwait kept its discount rate unchanged at 3.50%.

Saudi Arabia: Saudi Arabia’s TASI declined 6.2% in September to 10,440.6 points, its lowest close since January 2026, amid geopolitical tensions, attacks on energy infrastructure, oil-price volatility and concerns over supply disruptions. The decline pushed the index’s YTD performance to -0.5%. Most sectors fell, with Media (-14.9%), Consumer Durables & Apparel (-12.8%) and Commercial & Professional Services (-12.7%) recording the steepest declines, while major banks and telecom stocks also weakened. Trading activity contracted sharply, with volume down 33.9% to 3.7 billion shares and value traded down 30.2% to SAR 78.2 billion. The central bank raised its repo and reverse repo rates by 25 basis points, while the FY2027 pre-budget statement projected a SAR 190 billion fiscal deficit.

Qatar: The Qatar Stock Exchange extended its decline for a fourth consecutive month in September, with the QE 20 falling 5.4%, marking the second-largest monthly decline in the GCC. The index’s YTD decline reached 14.1%, while the All Share Index was down 10.3%. Six of seven sectors declined, led by Real Estate (-7.8%), Transportation (-7.5%) and Telecoms (-7.2%), while Insurance was the only sector to gain, edging up 0.3%. Major banks, telecom companies and industrial stocks generally weakened. Trading volumes fell 2.2% to 3.1 billion shares, while value traded declined 10.4% to QAR 7.6 billion.

Bahrain: The Bahrain Bourse All Share Index declined 1.5% in September, its third consecutive monthly fall, closing at 1,907.8 points; it fell 6.6% during Q3. Six of seven sectors declined, led by Materials (-5.6%), Consumer Staples (-5.4%) and Consumer Discretionary (-2.7%). Real Estate was the only sector to gain, rising 12.3%, mainly supported by Seef Properties. Trading volume increased 28% to 59.4 million shares, although value traded slipped 1.6% to BHD14.6 million. Economic activity remained affected by regional tensions, with real estate transactions falling 63.2% year-on-year in the first half of 2026, while office rents remained broadly stable.

Oman: Oman’s MSX 30 Index edged down 0.5% in September to 7,566.8 points, reducing its YTD gain to 29%, still the highest among GCC markets. Sector performance was mixed, with Financials rising 1.7% and Industrials gaining 2.1%, while Services declined 1.7%. Among individual stocks, Dhofar Food and Investment and Oman Chromite posted gains of more than 32%, while National Aluminum Products fell 32.9%. Trading volume declined 2.7% to 3.4 billion shares and value traded fell 6.3% to OMR 0.91 billion. S&P Global Ratings raised its 2026 economic growth forecast for Oman to 3.5%, citing favourable trade logistics and the strength of the energy sector, while maintaining its BBB- investment-grade rating with a stable outlook.

Abu Dhabi: The FTSE ADX rose 0.6% in September 2026 to 10,070.3 points, marking its fourth consecutive monthly gain and taking Q3 growth to 2.7%. Eight of the 10 sector indices advanced, led by Real Estate (+6.3%) and Telecom (+1.7%), while Financials edged up 0.1%. ARAM Group was the strongest monthly gainer, rising 35.5%, followed by Bank of Sharjah and Space42, while Oman & Emirates Investment Holding fell 32.6%. Trading activity strengthened, with volumes rising 26.7% to 6.0 billion shares and value traded increasing 4.9% to AED24.2 billion. Abu Dhabi’s real estate market also remained strong, recording AED117 billion in transactions in H1-2026, while foreign non-resident investment in the sector quadrupled to AED13.8 billion.

Dubai: The DFM General Index gained 2.1% in September 2026 to 5,960.5 points, its second consecutive monthly increase and the strongest monthly gain among GCC markets, although Q3 growth was marginal at 0.1%. Five of eight sectors advanced, led by Communications (+6.9%), Real Estate (+5.7%) and Financials (+2.3%), while Consumer Discretionary (-5.0%) and Consumer Staples (-4.3%) declined. Dubai Islamic Insurance was the top-performing stock, surging 75.3%. Trading activity strengthened sharply, with volume almost doubling to 6.7 billion shares and value traded rising 17.8% to AED 14.4 billion. Dubai’s property market showed signs of moderation, with average residential prices falling 1.7% year-on-year in August, although residential sales remained strong at AED23.4 billion for the month and nearly AED270 billion in the first eight months of 2026.—TradeArabia News Service