Arab financial markets recorded positive performance during July 2025, driven by corporate profit growth, improved profit margins, higher dividend distributions, and easing global trade tensions. Performance indicators rose in ten Arab exchanges, most notably the Dubai Financial Market with a 7.95% increase, followed by the Casablanca and Muscat exchanges with 7.31% and 6.22% respectively. In contrast, three exchanges — Saudi Arabia, Iraq, and Palestine — posted declines.
Banking, real estate, and energy sectors supported the overall performance, with the “MSCI Arab Markets Index” rising by 2.36%. The decision of Arab central banks to maintain interest rates, in line with U.S. monetary policy, also contributed to supporting liquidity and deepening markets.
Globally, markets witnessed relative stability, underpinned by optimism over the trajectory of trade negotiations. U.S. and European markets posted gains, led by the FTSE (4.24%) and Nasdaq (3.70%). In Asia, the technology sector was the main driver, while emerging markets registered mixed gains, against a decline in Latin America of 4.60%.
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