Saudi Stock Index Leads Gains Amid Rising Oil Prices

Early trading in the Gulf region has seen major stock exchanges posting gains, driven by concerns over a potential fuel supply shortage due to increased summer fuel consumption and OPEC+ production cuts in the third quarter. The rise in oil prices, a significant factor for Gulf economies, continued for the fourth consecutive session, with Brent crude reaching $85.59 per barrel by 0750 GMT.

The Saudi stock index led the gains, increasing by 0.7%, primarily supported by strong performances in the energy and material sectors. Notably, newly listed Al Taiseer Group Talco Industrial surged by 2.6%, while the largest Islamic lender, Al Rajhi Banking & Investment Corporation, gained 1%. Saudi Aramco, the state oil company, also rose by 1.1% following the signing of contracts exceeding $25 billion for the expansion of its Jafurah gas field and main gas network.

In Qatar, the benchmark index showed a slight increase of 0.1%, marking its 20th consecutive winning session. Qatar National Bank, the region's largest lender, saw a 0.1% gain, while petrochemical manufacturer Industries Qatar edged up by 0.2%. Abu Dhabi's main index also rose by 0.1%, continuing its upward trend for the third session, supported by a 0.4% increase in International Holding Company and a significant 2.9% jump in Multiply Group, an investment firm owned by IHC.

Dubai's main index recorded a 0.1% increase, with Emirates Central Cooling Systems Corporation surging by 3.4% and toll operator Salik Company rising by 0.9%.

The positive momentum in the Gulf region's stock exchanges reflects the impact of rising oil prices and strategic developments in key sectors. Investors are closely monitoring the market dynamics as economic activities continue to evolve, presenting opportunities for growth and investment.