Stock markets across the Gulf region experienced gains following a ceasefire agreement between Israel and the Hezbollah group, brokered by the United States and France. This development has alleviated concerns over a broader regional conflict that could disrupt economic stability.
Saudi Arabia's benchmark index rose by 0.3%, with significant contributions from Al Rajhi Bank and Saudi National Bank. Dubai's main index also increased by 0.3%, bolstered by a 2.4% rise in shares of the Dubai Electricity and Water Authority. Abu Dhabi's index climbed by 0.4%, while Qatar's benchmark edged up by 0.1%, aided by a 1.5% rise in telecom firm Ooredoo's shares.
The ceasefire agreement has been welcomed by global leaders, with U.S. President Joe Biden and French President Emmanuel Macron stating that it will protect Israel from the threat of Hezbollah and create conditions for lasting calm.
Oil prices remained stable as concerns over Middle Eastern supply disruptions lessened, with anticipation building around the OPEC+ meeting on December 5, where oil output policy will be discussed.
The positive performance of Gulf markets reflects investor confidence in the region's stability following the ceasefire, with expectations of continued economic growth and development.
