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Most stock markets in the Gulf were lower on Thursday as simmering geopolitical tensions in the Middle East kept investors on the sidelines.

Israeli strikes pounded Beirut’s southern suburbs on Wednesday and Hezbollah said it fired precision guided missiles for the first time at Israeli targets, as U.S. Secretary of State Antony Blinken toured the region, pushing for a halt to fighting in both Gaza and Lebanon.

Israeli strikes were also reported to have hit the Syrian capital Damascus early on Thursday.

Saudi Arabia’s benchmark index eased 0.1%, with the country’s biggest lender Saudi National Bank losing 0.6% and Alinma Bank was down 1.2%.

The Saudi index posted a weekly loss of 0.2%.

Separately, the kingdom attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.

In Abu Dhabi, the index closed 0.1% lower, hit by by a 0.5% drop in conglomerate International Holding Co (IHC).

Most Gulf markets in red on heightened regional tensions

IHC said on Wednesday its subsidiary International Tech Group acquired an additional 46% stake in Emircon for 292 million dirhams ($79.51 million).

However, Abu Dhabi Commercial Bank climbed 2.5%, after beating forecasts with a 23% rise in third-quarter profit.

Dubai’s main share index concluded flat.

The Qatari index fell 0.1%, with petrochemical maker Industries Qatar retreating 1%.

The Qatari index recorded its biggest weekly loss of 3.1% in a year.

Outside the Gulf, the Egyptian index rose 0.5%, with Talaat Mostafa Holding gaining 1.7%.

The blue-chip index posted first weekly gains in three weeks.

Egypt’s economic growth will increase to 4.0% in the year to the end of June 2025 as austerity measures imposed under an International Monetary Fund programme run their course, a Reuters poll showed on Thursday.

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 SAUDI ARABIA    eased 0.1% to 11,886
 ABU DHABI       down 0.1% to 9,196
 DUBAI           was flat at 4,464
 QATAR           dropped 0.1% to 10,401
 EGYPT           rose 0.5% to 30,553
 BAHRAIN         gained 0.6% to 2,002
 OMAN            added 0.4% to 4,826
 KUWAIT          fell 0.2% to 7,461
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