Stocks in the Gulf region continue their upward trajectory for a third consecutive month, with investor confidence showing significant improvement.
The Gulf stock markets experienced a mixed performance in July 2025, with some markets recording gains while others saw declines. This volatility was tempered by a resilient Initial Public Offering (IPO) market, dominated by Saudi Arabia.
Saudi Arabia's Tadawul All-Share Index
Saudi Arabia's Tadawul All-Share Index witnessed a decline of approximately 1.88% in July 2025, closing at SAR 10,920.27. This decline extended its year-to-date loss to around -9.58%. The drop was due to sector-wide pressures and cautious investor sentiment, despite strong IPO activity in the first half of the year where Saudi Arabia accounted for the majority of GCC IPO proceeds.
Kuwait’s All Share Index
In contrast, Kuwait’s All Share Index stood out with strong year-to-date gains of 18.88% by mid-July. This was mainly attributed to strong sectoral gains in technology and insurance and a robust pipeline of IPOs and listings.
United Arab Emirates (UAE)
The UAE's performance was mixed, with fewer significant IPOs compared to the previous year. The total GCC IPO proceeds in H1 2025 were at $3.45 billion across 25 IPOs, slightly down from $3.6 billion on 23 IPOs in H1 2024. Notable IPO gains included Oman’s Asyad Shipping, which posted the highest post-listing gains in the region during H1 2025.
Other Markets
Boursa Kuwait posted its third straight month of moderate gains, with the General Market Index rising 1.92 percent. Monthly liquidity in Boursa Kuwait jumped 19 percent to KWD 2.5 billion. The Main Market Index in Boursa Kuwait advanced 5.8 percent, benefiting from strong activity in smaller-cap companies.
Dubai's market value rose by $8 billion, Qatar's by $9 billion, and Kuwait's by $3.3 billion in July. The monthly trading value in the Qatar Stock Exchange reached $2.59 billion, down 6 percent from June. The Qatar Stock Exchange's market value rose by $9 billion in July, with its index up 4.76 percent.
Valuation Metrics and External Factors
Regarding valuation metrics such as Price-to-Earnings (P/E) ratios, detailed July 2025 data specific to Gulf markets were not explicitly reported. However, cautious investor sentiment in Saudi Arabia suggests elevated sector pressures might have compressed earnings multiples. In contrast, stronger market performance in Kuwait likely supported healthier P/E ratios in its leading sectors.
External factors influencing performance included global trade tariff uncertainties, geopolitical tensions such as the Israel-Iran conflict, and overall macroeconomic volatility, which contributed to uneven market sentiment across the GCC during the period.
Market Capitalization and Liquidity
The market capitalization of Gulf stock markets increased to $3.93 trillion in July, with Abu Dhabi seeing the largest jump to $839 billion. Monthly trading values across Gulf markets rose 12 percent in July to $53 billion, with Saudi Arabia accounting for 54 percent.
Inflation figures rose to 2.7 percent year-on-year in June. The Federal Reserve is awaiting further data before deciding on interest rate cuts, a decision that could influence global markets.
Summary
In summary, the Gulf stock markets recorded three consecutive months of gains in July 2025, with some markets showing significant growth driven by sectoral strength and IPO activity. However, the performance was also influenced by external factors and sectoral pressures, leading to mixed results across the region. The resilient IPO market, particularly in Saudi Arabia, provided a positive note amidst the volatility.
| Market | July 2025 Performance | Key Drivers | Notes on P/E Ratios | |----------------|-------------------------------|-----------------------------------------|--------------------------------| | Saudi Arabia | -1.88% July decline; YTD -9.58% | Sector-wide pressures; cautious investors | Likely compressed due to pressures | | Kuwait | Strong gains; +18.88% YTD mid-July | Technology, insurance sector strength; IPO pipeline | Better valuation support implied | | UAE | Mixed; fewer significant IPOs | Lower IPO volume than previous year | Not detailed | | Oman | IPO-led gains (e.g., Asyad Shipping) | Selective IPO gains | Not detailed | | Bahrain | Mixed performance; no specific data provided | Uncertain sectoral drivers; geopolitical influences | Not detailed | | Qatar | Mixed performance; down 6% in trading value | Sectoral pressures; geopolitical influences | Not detailed |
Finance played a significant role in the performance of Gulf stock markets in July 2025, with Initial Public Offerings (IPOs) being a key factor. Saudi Arabia's Tadawul All-Share Index, despite facing sector-wide pressures and cautious investor sentiment, accounted for the majority of GCC IPO proceeds in the first half of the year. In contrast, Kuwait’s All Share Index showed strong year-to-date gains, with strong sectoral gains in technology and insurance and a robust pipeline of IPOs and listings contributing to its growth. The United Arab Emirates (UAE) saw a mixed performance, with fewer significant IPOs compared to the previous year.
