Financial markets in the Gulf Cooperation Council (GCC) region ended the month of January on a positive note, with the telecom, banking, pharma and retailing sectors bolstering indices.

GCC bourses posted gains of between 0.4% and 5.7% during the month, with the exception of Bahrain and Oman. The S&P GCC Composite Index went up by 3%, while the MSCI World and S&P 500 Indices went up by 3.5% and 2.7%, respectively, during the month.

Indices across the region were buoyed by positive investor sentiment, with telecom firms in Saudi and banks in Abu Dhabi and Kuwait among those leading the gains, according to Markaz.

Besides lenders and telecoms, other sectors also performed well in January. The retailing index posted a gain of 8.6%, while the pharma index rose by 7%, according to Kamco Invest and Kuwait Financial Centre (Markaz).. 

Overall, the telecom index went up by 6.2%, as shares of STC, Ooredoo and Vodafone Qatar scored healthy gains. However, the utilities and energy sectors posted marginal declines.

Regional indices

Overall, the Saudi Arabia equity index rose by 3.1%, driven by blue chips like Saudi Telecom Company and Etihad Etisalat Company, which recorded gains of 8.7% and 8.4%, respectively.

The Abu Dhabi equity index was up by 1.8%, with the strong financial results in the banking sector driving investor sentiment. Among the lenders taking the lead, the Abu Dhabi Commercial Bank (ADCB) reported a 26% growth in its 2024 net profits and posted a 14.9% gain in January 2025.

Qatar and Dubai indices also ended the month of January with a positive rise of 0.9% and 0.4%, respectively, while the Kuwait index went up by 5.7%, buoyed by significant gains in banking shares.

Kuwait’s performance in January also highlighted gains across all segments on the local bourse and was the biggest monthly return in 12 months.

The Oman equity index was down by 0.7%, while Bahrain posted the region’s biggest decline of 5.4%, dragged by the 18.5% fall in the Aluminum Bahrain’s shares following the cancelled merger with Ma’aden.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com