Gulf stock markets closed lower on Thursday, 29 October 2026, as banking shares led losses and investors weighed escalating fighting in Yemen against stalled efforts to end the wider Middle East conflict. The retreat was broad: seven of the region's nine main markets ended lower, with Abu Dhabi falling the furthest.

Saudi Arabia's Tadawul All Share fell 1.02% to 9,921.50, giving back the 10,000 level it had retaken on Wednesday. Saudi National Bank, the kingdom's largest lender, fell 1.9%, Al Rajhi Bank lost 1.1% and oil giant Saudi Aramco slipped 0.3%. Despite the day's losses, the Saudi index still recorded a weekly gain, ending an eight-week losing run.

Banks lead the falls across the Gulf

Abu Dhabi's FTSE ADX General lost 1.17% to 9,477.76, the day's deepest fall. First Abu Dhabi Bank, the UAE's largest lender, dropped 4.2% even though it had just reported a 6% rise in third-quarter net profit, driven by stronger net interest income. Dubai's main index fell 0.47% to 5,817.75, Qatar's QE Index slipped 0.69% to 9,151.18, Kuwait's All-Share fell 0.43%, Oman's MSX 30 fell 0.42% and Bahrain's All Share eased 0.27%, its twelfth consecutive decline.

Why sentiment turned cautious

Reuters reported that Yemen's Houthis attacked Aden airport on Wednesday and that a Saudi-led coalition destroyed a ballistic missile fired towards the kingdom's eastern region early on Thursday. Qatari mediators have presented Iran with a new draft deal, but a senior Iranian official dismissed it as unacceptable ideas rather than an offer. Analysts also noted reports suggesting the possibility of US military action after the 3 November midterm elections, which have kept investors cautious even where company results have been strong.

Sources: Reuters; Maaal, reporting Reuters; The Edge, Middle East Market Wrap, 29 October 2026.