Gulf markets rose for a second consecutive month in October, showing stronger investor confidence across the region. The MSCI GCC index increased by 1.2 percent, supported by policy easing and stable global conditions.
Kamco Invest reported that broad sector gains drove the regional rally. Additionally, trading activity picked up toward the month’s end. Most GCC central banks, excluding Kuwait, cut interest rates to stimulate liquidity.
However, performance across Gulf markets remained uneven. Oman, Bahrain, and Dubai posted gains, while Qatar extended its decline due to weak large-cap stocks. Oman led with an 8.3 percent increase. Bahrain followed at 5.9 percent, and Dubai rose 3.8 percent. In contrast, Qatar fell 0.9 percent.
Across the year to date, Oman’s rally lifted gains to 22.6 percent, while Kuwait remained the top performer with 22.7 percent. Large-cap sectors including banking, energy, telecommunications, and real estate outperformed smaller sectors.
Kamco Invest noted that diversified financials gained 6.6 percent, retailing rose 6.4 percent, and utilities climbed 4.8 percent. Energy increased 3.8 percent, while banks added 0.7 percent. On the downside, consumer durables fell 10.7 percent, hotels and leisure declined 2.2 percent, and food and drug retailing eased 1.2 percent.
Kuwait’s mid- and small-cap stocks drove the All-Share Index up 2.7 percent to 9,031.9 points. Moreover, trading volumes surged 52 percent to 16.2 billion shares, while traded value rose 43.5 percent to 3.3 billion Kuwaiti dinars.
Saudi Arabia’s Tadawul All Share Index gained 1.3 percent in October, trimming its year-to-date loss to 3.2 percent. Utilities led with a 10.9 percent rise, supported by energy and consumer discretionary stocks. Banking shares slipped 0.6 percent.
Kamco Invest highlighted major transactions. Saudi Aramco acquired 375.97 million shares in Rabigh Refining and Petrochemical Co., representing 22.5 percent of its capital. Additionally, ACWA Power, Badeel, and Aramco signed agreements for five solar projects totaling 12,000 megawatts.
In the UAE, Abu Dhabi’s FTSE ADX rose 0.9 percent, and Dubai’s DFM gained 3.8 percent, raising its year-to-date performance to 17.5 percent. Bahrain climbed 5.9 percent, driven by a 22.2 percent rise in materials and broad financial gains. Oman extended its rally for a fourth month, led by services and financials.
Across Gulf markets, total traded value reached $58.7 billion. Overall, analysts described October as a “risk-on” month, fueled by rate cuts and strong energy-linked sector performance.
Looking ahead, experts expect Gulf markets to maintain momentum through year-end, supported by reform initiatives, diversified sector growth, and ongoing investor confidence.
