Kuwait Stock Exchange records remarkable 14.8% expansion in the first half of 2025, leading GCC market growth.
In June 2025, Gulf stock markets demonstrated a remarkable trend of recovery and moderate gains, with the region's overall performance showing cautious optimism amid regional stability and a favourable economic outlook.
The Kuwaiti market outperformed its regional peers during the first half of 2025, with the total traded share volume on Boursa Kuwait increasing by 25.5 percent in June, reaching 9.2 billion shares. Despite closures on June 26 and 27, Kuwait's market reflected the broader GCC trend.
The UAE markets showed significant growth. The Abu Dhabi Securities Exchange (ADX) rose by 2.8 percent in June, closing at 9,957.52 points, marking a year-to-date gain of 5.7 percent. The Dubai Financial Market (DFM) index gained 4.1 percent, continuing a third consecutive month of growth. Sector-wise, real estate led with a 7.8 percent surge, followed by utilities rising 6.7 percent, driven by strong performance from Abu Dhabi National Energy Company (TAQA).
Saudi Arabia's TASI Index gained 0.9 percent, closing at 11,068.3 points. Leading sectors were Consumer Durables & Apparel (+2.1 percent) and Materials (+1.3 percent). Major gainers included Ades Holding Co. (+7 percent) and National Gypsum Co. (+5.7 percent).
Qatar's market was also in growth, with the QE Index edging up 0.4 percent to 10,684.7 points. Gains were led by the Insurance (+1.5 percent) and Telecoms (+0.8 percent) sectors. Top rising stocks included Mannai Corporation (+10 percent) and Qatar General Insurance & Reinsurance Co. (+5.6 percent).
Bahrain's market data for June is limited, but gains in insurance and telecom sectors were noted in the region, with Bahrain possibly following similar trends.
The overall performance of the Gulf stock markets was influenced by several key factors. The easing of regional geopolitical conflicts, notably a ceasefire between Israel and Iran, heightened investor confidence. Positive macroeconomic indicators including projected Gulf economic growth acceleration by the World Bank (3.2 percent in 2025 and 4.5 percent in 2026) also played a significant role. Anticipation of US interest rate cuts helped boost sentiment given the dollar peg in Gulf currencies.
In summary, June 2025 saw broad-based recovery and gains across Gulf stock markets, led primarily by the UAE’s real estate and utilities sectors, Saudi Arabia’s consumer and materials sectors, and Qatar’s insurance and telecom sectors. Key companies such as Abu Dhabi National Co. for Building Materials, Mannai Corporation, and Saudi’s Ades Holding stood out as top performers. The Kuwaiti market also posted solid gains, with all sectors closing in positive territory. The region's half-yearly performance was strengthened by this rally, pushing the overall GCC index into positive territory with a gain of 1.5 percent. Kuwait maintained its leadership position, achieving the highest half-year growth among Gulf markets at 14.8 percent.
The UAE's finance sector, particularly in real estate and utilities, demonstrated substantial growth due to the surge in the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) index, while the Saudi Arabian market saw gains in the Consumer Durables & Apparel and Materials sectors. Key finance businesses such as Abu Dhabi National Energy Company (TAQA) and Ades Holding Co. experienced significant increases, contributing to the positive trend in the industry. The overall performance of Gulf business, driven by factors like regional stability, favorable economic projections, and US interest rate cuts, resulted in broad-based recovery and gains in the finance sector.
