Gulf Stocks: Tadawul TASI, DFM, ADX and QSE Daily — 2026-10-11
Gulf markets ended the week on a mixed note, with the Saudi Tadawul (TASI) hitting a three-month low amid renewed supply fears, while Dubai’s DFM rallied on real estate strength. Aramco’s CEO issued a stark warning about global oil stock depletion, casting a shadow over energy-linked equities across the region.
Gulf Stocks: Tadawul TASI, DFM, ADX and QSE Daily — 2026-10-11
Top developments
TASI Hits Three-Month Low on Supply Fears
The Saudi Tadawul All Share Index (TASI) closed at its lowest level since January, dropping significantly as investors reacted to renewed geopolitical tensions and supply chain concerns. The index faced heavy selling pressure from banking and energy sectors, with liquidity remaining high but sentiment cautious. This decline marks a reversal from earlier gains driven by oil flow recoveries earlier in the week.
DFM Gains on Real Estate Rally
In contrast to Saudi weakness, the Dubai Financial Market (DFM) closed higher, rising 0.33% to reach 5,818.47 points. The index was supported by strong performance in the real estate sector, which led gains among four advancing sectors. Trading activity in Dubai saw significant volume, reflecting continued investor confidence in the emirate’s property-linked equities despite broader regional volatility.
Aramco CEO Warns of Oil Supply Crisis
Saudi Aramco’s CEO warned that global oil stockpiles are "alarmingly low" and could take up to two years to rebuild, signaling that the oil market is far from normal. This statement has heightened scrutiny on energy stocks across the Gulf, as investors weigh the implications for future production costs and price volatility. The warning comes as TASI and other Gulf indices struggle to maintain momentum amid fluctuating crude prices.
IPO Pipeline Remains Sluggish
Despite earlier optimism, the Gulf IPO pipeline remains dry, with major listings delayed or shelved. Global bankers are increasingly looking outside the region to Egypt, Turkey, and India for new deals as local listings fail to materialize. Analysts suggest that while a recovery might occur in late 2027, the current environment is forcing a strategic pivot for regional investment banks.
Local view
Local Arabic media highlighted the divergence between Saudi and Emirati markets, with Erem Business noting that all Gulf exchanges ended the week on a collective low, except for Dubai’s resilience. Independent Arabia reported that banking stocks, specifically Al Rajhi and Al Ahly, were primary drags on the TASI, pushing it back into negative territory after brief green sessions.
Context & numbers
- TASI Close: The index closed near its lowest point in three months, pressured by banks and Aramco.
- DFM Close: Rose 0.33% to 5,818.47 points, gaining 19.24 points.
- Interest Rates: SAMA maintains a repo rate of 4.50% following the Fed's September hike, keeping borrowing costs high for Gulf corporates.
- Foreign Ownership: Foreign investors hold approximately 4.72% of the total market capitalization in Saudi Arabia, a figure that remains a key metric for market openness assessments.
On the radar
- Oil Stock Rebuild Timeline: Monitor crude inventories data for signs of the two-year rebuild period mentioned by Aramco.
- Q4 Earnings Season: Upcoming earnings from major Gulf banks will be critical in determining if the current valuation discount persists.
- IPO Rescheduling: Watch for any sudden announcements from the Capital Market Authority regarding rescheduled listings that had been paused due to market volatility.
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.
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