Stock markets in the Gulf fell in early trade on Thursday on concerns that sweeping U.S. reciprocal tariffs will worsen global trade tensions and could tip the world into recession.

On Wednesday, U.S. President Donald Trump unveiled a 10% baseline tariff on all imports, and higher duties on dozens of countries, including some of its biggest trading partners.

Saudi Arabia's benchmark index, which resumed trading after a four-session Eid break, fell 0.4%. The country's biggest lender Saudi National Bank declined 1.5% and oil giant Saudi Aramco was down 0.8%.

Oil prices, a catalyst for the Gulf's financial markets, fell by as much as 3% on worries that trade tensions could curtail economic growth and limit fuel demand.

The main share index in Dubai - the Middle East's travel and tourism hub - shed 1.8%, with blue-chip developer Emaar Properties plunging 8.9%, its biggest intraday fall since November 2021, on trading ex-dividend.

Meanwhile, Emaar Development slipped 2.4%.

In Abu Dhabi, the index retreated 0.8%, while the Qatari stock exchange remained closed for Eid holidays.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Eileen Soreng)


Reuters