Saudi rebound lifts most Gulf bourses as markets weigh regional risks

Most Gulf bourses closed higher on Tuesday, with Saudi Arabia’s benchmark index snapping a four-session losing streak, even as the kingdom extended the closure of Riyadh’s King Khalid International Airport until Saturday.

A spokesperson for the Saudi-led coalition said on Tuesday that civilians would soon be warned to evacuate a site in Yemen’s Sanaa ahead of a special operation.

The Saudi index rose 0.3%, helped by a 1.8% gain in Saudi National Bank, the country’s biggest lender by assets. That recovered part of the bank’s 1.2% drop on Monday.

Elsewhere, Dubai’s main share index gained 0.4%, while the Abu Dhabi index rose 0.3%.

GCC markets traded in a tight range on Tuesday as investors weighed rising regional risks. The lack of clarity on US-Iran talks and continued disruptions in the Strait of Hormuz kept sentiment cautious, although de-escalation efforts helped prevent a deeper sell-off, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

In Qatar, the index added 0.2%, building on a rebound after hitting its lowest level in more than six years on Sunday.

Airlines have cancelled flights after attacks by Yemen’s Iran-aligned Houthis emptied the skies over the Saudi capital. Qatar Airways said on Monday it had temporarily suspended flights to and from Riyadh and Dammam due to the situation.

UAE presidential adviser Anwar Gargash said on Monday there was a pressing need to revive joint Gulf action, particularly on security and defence. He said targeting Saudi Arabia undermined the security of all Gulf states.

Offering some reassurance on energy security, Energy Minister Prince Abdulaziz bin Salman said on Monday that Saudi Arabia wants to raise its pipeline crude export capacity to as much as 10 million barrels per day.

The plan involves repurposing a domestic gas pipeline and investing in the existing East-West network, which carries crude to the Red Sea and avoids the Strait of Hormuz.

Outside the Gulf, Egypt’s blue-chip index dropped 0.7%.

Egypt’s current account deficit widened to $7.9 billion in the April–June 2026 quarter, compared with $2.2 billion in the corresponding quarter of the previous year, the central bank said on Monday.