Gulf Stocks: Tadawul TASI, DFM, ADX and QSE Daily — 2026-10-26
Gulf markets experienced significant volatility this week, with the Saudi Tadawul All Share Index (TASI) plunging to a five-year low amid geopolitical tensions before staging a sharp rebound on diplomatic hopes. While regional equities struggled with Houthi attacks and a stalled IPO pipeline, foreign investors have become net sellers, shifting focus to private M&A deals.
Gulf Stocks: Tadawul TASI, DFM, ADX and QSE Daily — 2026-10-26
Top developments
TASI hits five-year low before rebounding on diplomatic hopes
The Saudi Tadawul All Share Index (TASI) fell 2.65% on Sunday, October 25, reaching its lowest close since April 2021, driven by weekend Houthi attacks that disrupted flights and unsettled investors. However, the index surged 3.43% on Monday, October 26, as markets reacted to reports of planned talks between Riyadh and Tehran to de-escalate tensions. This whipsaw movement highlights the market's sensitivity to regional security developments, with the index closing October losses at 7%.
UAE markets mixed as oil prices fluctuate
Dubai’s DFM index rose 0.30% on Monday, October 26, closing at 5,751.72 points, adding 2 billion dirhams to its market capitalization. In contrast, Abu Dhabi’s ADX saw mixed performance, with some sectors like Union Energy Holding leading declines on Monday. Overall, UAE stocks finished higher on Monday despite Brent crude slipping from recent highs, as investors anticipated easing US-Iran tensions.
IPO market stalls, investors pivot to private deals
The Gulf’s IPO pipeline has largely dried up due to the ongoing Iran war and market volatility, forcing global bankers to seek business outside the region. Investors are increasingly turning to private M&A transactions rather than public listings to exit investments. This shift marks a significant change from the previous years when the Gulf was a hot market for new share sales.
Foreign investors turn net sellers in Saudi Arabia
Following a series of Houthi attacks on targets across the kingdom, foreign traders have become net sellers of Saudi equities. This outflow contributes to the broader sell-off in banking, property, and healthcare shares, which has erased $176 billion in market value over two months. The total foreign holding value in Saudi stocks stood at $123.07 billion as of the end of August 2026.
Local view
Local Arabic media outlets have highlighted the dramatic swing in sentiment, noting that hopes for de-escalation between Washington and Tehran have revived Gulf equities. Al-Ain News reported that Saudi stocks fell 2.4% on Sunday due to tensions, with Aramco leading the losses. Meanwhile, Emirat al-Youm noted that local markets saw liquidity exceed 8 billion dirhams during the past week, with Dubai accounting for 2.84 billion and Abu Dhabi 5.25 billion.
Context & numbers
- TASI Performance: The index closed at 9,696 points on Thursday, October 22, down 2.3% for the day and 7% for October.
- DFM Performance: Closed at 5,751.72 points on Monday, October 26, up 0.30%.
- Saudi Trade Surplus: The August 2026 trade surplus widened to 15.60 billion riyals, providing some fundamental support despite the market volatility.
- Interest Rates: SAMA’s repo rate stands at 4.50% and the reverse repo rate at 4.00%, following a hike in September 2026.
On the radar
- Riyadh Airport Reopening: Riyadh airport reopened on October 25, though flight disruptions and cancellations continue to affect regional aviation and logistics.
- FII Conference Postponement: Saudi Arabia has canceled the 2026 "Davos in the Desert" investment conference, postponing it until 2027 amid security concerns.
- Oil Prices: Oil prices remained little changed as supply concerns lingered, though a damaged Saudi pipeline near reopening could ease supply fears.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
