GCC market decline accelerated in September as geopolitical tensions, higher interest rates and oil-price volatility pressured regional equities.
The MSCI GCC Index fell 3.5% during September, recording its sharpest monthly decline in ten months. Consequently, most Gulf markets ended the month lower as investors responded to rising uncertainty across regional and global economies.
Saudi Arabia recorded the steepest decline among GCC markets, with the TASI falling 6.2% during September. The index closed at 10,440.6 points, reaching its lowest level since January 2026.
Meanwhile, Qatar’s QE 20 index dropped 5.4%, extending its losing streak to four consecutive months. The decline pushed the index’s year-to-date performance to a 14.1% loss.
Kuwait also recorded losses, although its main benchmarks declined less sharply than several regional markets. The Kuwait All-Share Index fell 1.33%, while the Main Market declined 1.5% during September.
However, Kuwait’s Main 50 Index recorded a larger 7.1% decline during the month. Despite the weaker performance, trading activity increased significantly across the Kuwaiti market.
Trading volume in Kuwait rose 42.2% to 9.3 billion shares during September. At the same time, total traded value increased 37.7% to approximately KWD 2.4 billion.
Bahrain’s All Share Index declined 1.5%, marking its third consecutive monthly fall. Six of seven sectors recorded losses, while real estate remained the only sector showing notable growth.
Oman experienced a comparatively modest decline, with the MSX 30 Index falling 0.5%. Nevertheless, Oman continued to record the strongest year-to-date performance among GCC equity markets.
In contrast, UAE markets moved against the broader regional trend and recorded monthly gains. Dubai’s DFM General Index increased 2.1%, while Abu Dhabi’s FTSE ADX gained 0.6%.
Dubai recorded particularly strong performances in communications, real estate and financial stocks during September. Trading activity also strengthened, with volumes almost doubling compared with the previous month.
Abu Dhabi likewise benefited from gains across most sectors, particularly real estate and telecommunications. Meanwhile, the emirate’s property market continued recording substantial transaction activity during the first half of 2026.
Across the GCC, most sectors declined during September as investors assessed geopolitical risks and changing global monetary conditions. Consumer durables and apparel recorded the largest sector decline, falling 12.4% during the month.
Food and beverage stocks followed with a 9.7% decline, while materials companies dropped 7.8%. Banks and energy companies also declined by approximately 2% during the period.
At the same time, oil prices climbed sharply as regional security concerns affected expectations surrounding energy supplies. Brent crude reached around $109 per barrel before retreating partially toward month-end.
Higher interest-rate expectations also placed additional pressure on global financial markets throughout September. US 10-year Treasury yields reached 5.24% during the final week, increasing pressure across several asset classes.
Nevertheless, global markets recovered somewhat toward the end of September as economic indicators offered some relief. Stronger consumer spending and softer-than-expected core inflation helped improve sentiment during the final trading session.
The GCC market decline therefore reflected several overlapping pressures rather than one single economic factor. Regional security concerns, oil-market volatility and monetary policy expectations all influenced investor decisions during September.
Looking ahead, Gulf investors will continue monitoring regional developments, energy markets and global interest-rate expectations. Meanwhile, individual market performance will likely depend on corporate earnings, liquidity conditions and domestic economic activity.
For September, the contrasting performances across the Gulf highlighted significant differences between individual markets. While Saudi Arabia, Qatar, Kuwait, Bahrain and Oman recorded declines, Dubai and Abu Dhabi posted monthly gains.
