The Iran war is widening the divide between Gulf stock markets.
Dubai and Qatar have fallen as they remain more exposed to the closure of the Strait of Hormuz, while Saudi Arabia and Oman have performed positively.
Qatar’s problems predate the war due to the post-2022 men’s soccer World Cup slowdown: Listed companies’ profits declined 11% in the first half, and the country’s banking sector has barely grown while bank earnings in Saudi Arabia and the UAE rose by double digits, according to AGBI.
Oman’s success similarly began before the conflict, after Muscat introduced a series of economic reforms over the past five years, and the country has also benefited from its position as an oil exporter sitting outside the strait.
