Major Arab and African stock markets opened cautiously on Tuesday as investors balanced higher oil prices against the threat of renewed conflict and disruption around the Strait of Hormuz. Saudi shares began close to unchanged, Dubai opened firmer and Abu Dhabi retreated, while South African equities weakened as the rand and government bonds came under pressure.
Riyadh opens close to previous levels
Saudi Arabia’s Tadawul All Share Index opened at 10,906.21, little changed from Monday’s closing level of 10,908.06. The market subsequently moved into positive territory as energy shares received support from Brent crude trading above $91 a barrel.
Higher oil prices can strengthen government revenue expectations and support Saudi energy companies. However, investors remained concerned that an extended regional confrontation could disrupt shipping, discourage foreign investment and increase costs for companies dependent on imported materials.
Saudi Aramco and major banking shares were closely watched after contributing to Monday’s modest market decline.
Dubai and Abu Dhabi move in opposite directions
The Dubai Financial Market General Index opened at approximately 5,885.64, recovering from Monday’s close of 5,856.14. Property, financial and transport companies remained central to the early direction of the market.
Dubai’s economy benefits from regional trade, tourism and aviation, but those sectors are also vulnerable to disruption in the Gulf and higher fuel costs. Investors therefore treated the opening advance cautiously.
Abu Dhabi’s FTSE ADX General Index opened lower at 10,047.21 after finishing the previous session at 10,076.60. Energy and industrial shares provided some support, although broader risk aversion limited buying.
Qatar’s main index remained under pressure near the 9,900-point level after falling 1.52% on Monday. Banks, industrial companies and transport shares continued to reflect investor concern about regional trade and energy flows.
Cairo records a restrained opening
Egypt’s EGX30 opened around 55,560 points and traded close to its previous closing level during the opening period. The market remained supported by interest in selected banking, telecommunications and industrial companies, although higher oil prices presented a risk for inflation and Egypt’s import bill.
The Egyptian market has delivered strong gains during the past year, increasing the possibility of profit-taking when international risk appetite weakens. Currency conditions, foreign investment flows and government privatisation plans remained important domestic influences.
Johannesburg retreats as rand weakens
South Africa’s FTSE/JSE All Share Index opened near 114,061, approximately 0.5% below Monday’s close. The internationally exposed Top 40 index also weakened as Asian and European equity markets reacted to higher energy prices and rising government bond yields.
The rand traded around 16.2675 against the US dollar in early dealings, about 0.3% weaker. South Africa’s benchmark 2035 government bond yield rose seven basis points to 8.545%, indicating increased pressure in the domestic debt market.
South Africa imports most of its fuel, making the economy sensitive to sustained increases in global oil prices. Investors were also preparing for July inflation figures, with annual price growth expected to ease from June’s level.
Other African exchanges begin quietly
Trading in Casablanca and Nairobi started against a more stable domestic background. Morocco’s MASI entered the session close to 18,800 points, while Kenya’s market followed gains recorded on Monday. Activity remained comparatively restrained as investors assessed currency movements and global risk.
Energy and security dominate sentiment
Brent crude rose above $91 after the temporary US-Iran ceasefire expired without a permanent agreement. The combination of higher oil, restricted tanker traffic and rising global bond yields created a divided opening: energy exporters received potential revenue support, while importing economies faced renewed inflation and currency risks.
Newshub Editorial in Africa and Asia – 18 August 2026
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