Major stock markets in the Gulf were mixed in early trade on Wednesday on global economic worries and volatile energy prices.

Saudi Arabia’s benchmark index gained 0.3% and is on course to extend gains from the previous session, helped by a 0.7% rise in Al Rajhi Bank.

Elsewhere, Alinma Bank advanced 1.7% after it proposed a cash dividend of 0.50 riyal per share for the second half of 2022.

Oil prices - a key catalyst for the Gulf’s financial markets - were little changed as a larger-than-expected draw in US crude stocks offset worries about rising COVID-19 cases in top importer China.

Meanwhile, Saudi energy minister Prince Abdulaziz bin Salman said OPEC+ members leave politics out of the decision-making process and their assessments and forecasting.

OPEC+’s heavily criticised decision to cut oil output turned out to be the right one for supporting market stability and the industry, he added.

In Qatar, equities gained 0.6%, as most of the stocks on the index were in positive territory, including petrochemical maker Industries Qatar, which was up 1.3%.

Gulf markets end mixed on economic concerns, volatile energy prices

The country, which just hosted the 2022 soccer World Cup, approved its 2023 fiscal year budget on Monday with revenue estimated to increase 16.3% next year, its finance minister said, thanks to rising average oil prices.

The budget was based on an oil-price assumption of $65 per barrel, compared to 2022’s assumption of $55. Dubai’s main share index fell 0.4%, hit by a 1.7% fall in utility firm Dubai Islamic Bank.

National Central Cooling Co (Tabreed) retreated 3.2%, after it said in a bourse filing that Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, bought a 30% stake in Saudi Tabreed - a local venture of Tabreed.

On Tuesday, TABR surged more than 10% on reports that PIF would buy a $250 million stake.

The Abu Dhabi index eased 0.1%.