DUBAI: Most Gulf equities ended higher on Monday as US President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries. The White House is close to finalising several trade agreements in the coming days and will notify other countries of higher tariffs by July 9, with the new rates effective August 1, Trump said on Sunday.
Saudi Arabia’s benchmark index rose 0.3%, helped by a 0.8% gain in oil giant Saudi Aramco.
Oil shrugged off the impact of OPEC+ hiking output more than expected for August as well as concerns about the potential impact of US tariffs, with prices mostly reversing early losses as a tight physical market lent support.
In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia.
The uncertainty surrounding oil prices, especially with OPEC+ gradually increasing production, remains a key risk for the Saudi market, said Joseph Dahrieh, managing principal at Tickmill.
“However, the market could find support as Saudi Arabia expands its share in the oil market,” he said.
Dubai’s benchmark index gained 0.9%, hitting a 17-year high, driven by financial shares. Emirates NBD jumped 2.3%, while Dubai Islamic Bank rose 1%.
According to Dahrieh, the Dubai stock market’s strong fundamentals suggest potential for further growth, while US trade policy risks could continue to weigh on sentiment.