Arab financial market recorded a decline in April 2025, influenced by global market volatility following the United States’ announcement of increased tariffs on imports from 180 countries, including 19 Arab nations. Concerns over slowing economic growth, rising inflation, and geopolitical tensions further weighed on the performance of most exchanges.
Six Arab stock markets posted gains, driven by strong performance in telecommunications, pharmaceuticals, technology, and banking sectors. Meanwhile, seven others declined under pressure from drops in the energy, financial services, and transportation sectors. Dubai Financial Market led the gains with a 4.14% increase, followed by Iraq’s market with 3.46%. In contrast, Muscat, Kuwait, and Palestine saw losses ranging between 1.16% and 1.64%, while Bahrain, Saudi Arabia, Casablanca, and Amman recorded deeper declines, reaching up to 5.6%.
At the start of the month, the U.S. tariff announcement triggered a global sell-off, impacting indices like the S&P and NASDAQ, which dropped by 9% to 13.7%. However, the subsequent decision to suspend the tariffs for three months helped pare losses, particularly in emerging markets, which rebounded by around 6.26%, followed by gains in Europe and Asia.
Despite ongoing pressures, improved liquidity and investor confidence helped mitigate losses. The MSCI index for the Arab region fell by 1.1%, and by 1.2% in the Gulf, indicating the beginning of a relative recovery. On another front, several central banks, including those in Europe, New Zealand, and Egypt, cut interest rates as part of easing measures to support growth, while most Arab central banks kept rates unchanged. Nevertheless, challenges persist due to the rise of protectionist policies and their impact on production costs and global trade outlook.
Download the full bulletin here:
https://www.amf.org.ae/ar/publications/nshrt-aswaq-almal/alnshrt-alshhryt-laswaq-almal-alrbyt-aldd-alsab-walkhmswn