Stock markets in the Middle East suffered their worst rout in five years, dragged lower by slumping oil prices and investor concerns that new tariffs imposed by the administration of US President Donald Trump could disrupt global trade and stunt economic growth.
In Saudi Arabia, the Arab world's largest economy, the benchmark Tadawul index closed 6.78 per cent lower on Sunday, its worst performance since 2020.
Stocks slumped across sectors, most notably in energy, real estate, professional services and consumer-related services sectors. Shares in Saudi Aramco, the world's largest oil-exporting company, were down 4.75 per cent.
Bourses in Kuwait and Qatar also fell, with stocks in Kuwait slumping by 5.69 per cent and the benchmark index in Doha slipping 4.23 per cent at the close. Listed real estate and hospitality companies were particularly hard hit, with IFA Hotels and Resorts and Al Tijaria among the top losers.
In Egypt, the benchmark EGX 30 fell by 3.34 per cent and the EGX 70 dropped by 4.84 per cent.
The Abu Dhabi Securities Exchange and the Dubai Financial Market in the UAE are closed on Sundays. They shed 0.76 per cent and 1.51 per cent, respectively, at the close of trading on Friday.
The US imposed a sweeping “baseline tariff” of 10 per cent through an executive order on what Mr Trump called “Liberation Day” on Wednesday. The tariff came into effect on Saturday.
The six-nation GCC bloc – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – along with Middle East and North Africa nations Egypt, Iran, Lebanon, Morocco and Yemen, all received the minimum 10 per cent tariff. Syria was the hardest hit at 41 per cent, followed by Iraq (39 per cent), Libya (31 per cent), Algeria (30 per cent), Tunisia (28 per cent) and Jordan (20 per cent).
“Stock markets have plunged since the announcement [of the tariffs] … and markets are pricing in more central bank cuts; any Fed cut will be mirrored by most GCC nations, given the dollar peg,” according to analysts at Nasser Saidi and Associates, a Dubai-based advisory company.
Ripple effects
The decline in Middle East stocks followed a similar slide in global equity markets, which plunged on Friday following the tariff announcements that increased fears of full-blown international trade war and the risk of a global economic recession.
Wall Street was hit hard, with the S&P 500 sinking 6 per cent, the Dow Jones Industrial Average falling 5.5 per cent and the Nasdaq composite dropping 5.8 per cent.
In Europe, France’s CAC 40 dropped 4.3 per cent, and Germany’s DAX lost nearly 5 per cent.
The UK's FTSE 100 slid on Friday in its worst day of trading since the start of the pandemic. London’s top stock market index dropped about 5 per cent, its biggest single-day decline since March 2020.
In Asia, Japan’s Nikkei 225 shed 2.8 per cent and South Korea’s Kospi dropped 0.8 per cent. Stock markets in Hong Kong and Shanghai were closed on Friday for a holiday, but were lower by 1.5 per cent and 0.2 per cent, respectively, at the close on Thursday.
Liberation Day “had its intended shock-and-awe effect … we will soon be hearing from companies to what extent they may be able to mitigate the announced tariffs, including price increases, rerouting supply chains, reducing the cost base, among others”, said Philipp Lienhardt, head of equity research at Swiss financial institution Julius Baer.
Oil on a slippery slope
The stock market rout coincided with a slump in oil prices. Crude has remained on a slippery slope during the past week, plunging to the lowest levels in more than three years on Friday, as China hit back against Mr Trump's tariffs with its additional levies on US goods.
Opec+'s surprise decision to boost oil supply added to the heavy selling.
That was a “very bad combo”, as the supply-demand fundamentals remain “comfortably negative”, said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, who also expects a further slide in crude prices.
“Obviously, the tariffs will hit the global oil demand much less compared to the pandemic. Yet the upcoming slowdown in global economic activity reinforces the probability of a further slide toward the $50-per-barrel level,” Ms Ozkardeskaya said.
Brent, the benchmark for two thirds of the world’s oil, closed down 6.5 per cent at $65.58 a barrel at the market close on Friday. West Texas Intermediate, the gauge that tracks US crude, was 7.4 per cent lower at $61.99 a barrel.
On a weekly basis, Brent was down 10.9 per cent, its steepest percentage loss in 18 months, while WTI posted its biggest drop in two years with a decline of 10.6 per cent.
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Top New Zealand cop on policing the virtual world
New Zealand police began closer scrutiny of social media and online communities after the attacks on two mosques in March, the country's top officer said.
The killing of 51 people in Christchurch and wounding of more than 40 others shocked the world. Brenton Tarrant, a suspected white supremacist, was accused of the killings. His trial is ongoing and he denies the charges.
Mike Bush, commissioner of New Zealand Police, said officers looked closely at how they monitored social media in the wake of the tragedy to see if lessons could be learned.
“We decided that it was fit for purpose but we need to deepen it in terms of community relationships, extending them not only with the traditional community but the virtual one as well," he told The National.
"We want to get ahead of attacks like we suffered in New Zealand so we have to challenge ourselves to be better."
The%20specs
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Baby Driver
Director: Edgar Wright
Starring: Ansel Elgort, Kevin Spacey, Jamie Foxx, Lily James
Three and a half stars
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
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Courtesy: Carol Glynn, founder of Conscious Finance Coaching
ITU Abu Dhabi World Triathlon
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
UAE currency: the story behind the money in your pockets
The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
Overview
Cricket World Cup League Two: Nepal, Oman, United States tri-series, Tribhuvan University, Kathmandu
Fixtures
Wednesday February 5, Oman v Nepal
Thursday, February 6, Oman v United States
Saturday, February 8, United States v Nepal
Sunday, February 9, Oman v Nepal
Tuesday, February 11, Oman v United States
Wednesday, February 12, United States v Nepal
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
BRIEF SCORES
England 353 and 313-8 dec
(B Stokes 112, A Cook 88; M Morkel 3-70, K Rabada 3-85)
(J Bairstow 63, T Westley 59, J Root 50; K Maharaj 3-50)
South Africa 175 and 252
(T Bavuma 52; T Roland-Jones 5-57, J Anderson 3-25)
(D Elgar 136; M Ali 4-45, T Roland-Jones 3-72)
Result: England won by 239 runs
England lead four-match series 2-1
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Brief scores:
Day 1
Toss: India, chose to bat
India (1st innings): 215-2 (89 ov)
Agarwal 76, Pujara 68 not out; Cummins 2-40
The bio
Favourite vegetable: Broccoli
Favourite food: Seafood
Favourite thing to cook: Duck l'orange
Favourite book: Give and Take by Adam Grant, one of his professors at University of Pennsylvania
Favourite place to travel: Home in Kuwait.
Favourite place in the UAE: Al Qudra lakes
ULTRA PROCESSED FOODS
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- Margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars
- Energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- Infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes
- Many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts
