Oil Slump Hammers Gulf Equities: Saudi Stocks Take Biggest Hit

Black gold's bad day just turned into a sea of red for Gulf markets.

The Crude Connection

When oil prices tumble, it doesn't just hit energy traders. It sends shockwaves through the economies built on it. Today, that connection was on brutal display across Gulf Cooperation Council (GCC) exchanges. The region's lifeblood commodity took a dive, and equity markets followed it down—no parachute.

Saudi's Underperformance Puzzle

All eyes were on the Tadawul. As the region's largest and most liquid market, Saudi Arabia often sets the tone. But today, it didn't just follow the trend—it led the decline, underperforming its regional peers. The question isn't just about oil exposure; it's about what other pressures are squeezing valuations in Riyadh when the petrodollar flow slows.

Beyond the Barrel

Smart money knows a single-day move tells only part of the story. The real narrative is about diversification—or the painful lack thereof. When your entire stock market can be dragged down by one commodity's price, it's a stark reminder of old-economy vulnerabilities. Meanwhile, decentralized digital asset markets trade 24/7, utterly indifferent to OPEC's latest output decision.

A cynical take? Traditional finance still runs on century-old leverage—geopolitical leverage, resource leverage, debt leverage. One lever breaks, and the whole machine stutters. How very efficient.

Gulf indexes react to pressure

Ashraf Al Mamari, chief executive of Oman’s state energy group OQ, said the company is speaking with new partners after SABIC walked away from its petrochemical project in Duqm. He said OQ wants to keep the plan moving and is reviewing options with groups that recently showed interest.

Qatar’s benchmark index broke its four-day winning streak and ended 0.4% lower at 10,855, with every component in the red. Qatar National Bank, the region’s top lender, lost 0.8%, and Industries Qatar also slipped 0.8%.

Kuwait’s index inched up 0.1% to 9,715, while Bahrain dipped 0.1% to 2,056. Oman ROSE 0.1% to 5,956, helped by steady moves in local names.

Outside the Gulf, Egypt moved the other way. The EGX30 added 0.1% to 42,065, helped by a 15.3% jump in Raya Holding and a 2.1% rise in Telecom Egypt, which had forecast high-single-digit revenue growth and an EBITDA margin in the low-40s range under its 2026 view.

Still though, trade stayed cautious across the board with no strong rebound signals as investors tried to size the effect of oversupply worries. The seizure of the tanker added stress to an already thin market, and talk of a possible peace path between Russia and Ukraine pushed crude lower even further.

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