DUBAI: Major stock markets in the Gulf were subdued on Thursday, with Dubai hurt by losses in its banking shares. Saudi Arabia's benchmark index was flat, with Saudi Telecom Company retreating 2.1% after it reported a decrease in second-quarter profit.

The kingdom's finance minister said on Wednesday that July data is promising for an economic recovery, though many uncertainties remain, and economic contraction will likely be less than the 6.8% predicted by the International Monetary Fund.

Dubai's main share index retreated 0.6%, weighed down by a 1.2% fall in Emirates NBD Bank and a 1.5% decrease in blue-chip developer Emaar Properties. Elsewhere, Dubai Islamic Bank was down 0.5%.

On Wednesday, the United Arab Emirates' largest sharia-compliant lender reported a net profit of 1.01 billion dirhams ($274.99 million) in the second quarter, down from 1.38 billion dirhams a year ago. In Abu Dhabi, the index closed flat. Dana Gas rose 3.6%, while Emirates Telecommunications Group was up 0.2%.

The Qatari index slipped 0.2%, with Barwa Real Estate Company falling 3.5% and telcoms firm Ooredoo losing 1.8%. But Qatar International Islamic Bank added 0.6% following an increase in first-half net profit.

Separately, Qatar Airways is seeking at least $5 billion in compensation from Saudi Arabia, the United Arab Emirates, Egypt and Bahrain for blocking it from their airspace, the state-owned carrier said on Wednesday. Last week, the United Nation's highest court for disputes between countries sided with Qatar in its legal fight with the Gulf states that imposed an air blockade on Doha. Egypt was closed for a public holiday.