Overview:

Gulf equity markets ended Thursday with broader declines as investor sentiment weakened. The Saudi Arabia Tadawul Index closed 29.92 points lower at 10,826.98, with trading volume reaching 4.3 billion riyals. Oil prices retreated for the third consecutive session following announcements of diplomatic progress in discussions between Iran and the United States held in Doha, reducing near-term supply disruption concerns. Gold prices strengthened, climbing above 4,000 dollars per ounce amid softer employment data and declining crude valuations.

Details:

Crude oil futures declined sharply during early trading, with Brent crude falling 0.73 dollars, or 1.02 percent, to settle at 70.84 dollars per barrel. The broader pullback reflected easing geopolitical tensions and reduced apprehension regarding potential supply chain interruptions following Qatar's announcement of constructive progress in United States-Iran negotiations. Precious metals capitalized on these developments, with gold advancing more than one percent and tracking toward its first weekly gains in five weeks, bolstered by weakening macroeconomic indicators and Federal Reserve communications signaling reduced rate increase expectations.

In the domestic financial sector, Amlak Al-Alamiah Finance Company completed an agreement with the National Commercial Bank for the sale of a consumer finance portfolio valued at 133.66 million Saudi riyals. The central bank directed all operating banks and financial institutions to establish banking accounts for non-resident property owners, broadening financial system accessibility. Meanwhile, the Saudi National Center for Water Efficiency launched the national water efficiency award program, designed to incentivize innovation and sustainable water conservation initiatives across industrial and commercial sectors.

Tourism activity continued its positive trajectory, with the Jizan region recording over 4 million visitors during 2025, representing 47 percent growth compared to the previous year. Mecca claimed 59 percent of newly licensed hotel rooms across the kingdom, reinforcing its position as the primary investment magnet in the hospitality sector. The National Vegetation Development Center unveiled 142 investment opportunities aimed at vegetation cover expansion, supporting ecological tourism and sustainable development objectives.

Outlook:

Investors remain focused on crude oil price trajectory amid evolving geopolitical conditions and any Federal Reserve policy adjustments that could influence global market sentiment. Domestic attention centers on tourism sector expansion, particularly hotel infrastructure development in pilgrimage destinations, and implementation of financial inclusion measures for property investors.