Markets across the Middle East and Africa opened Friday on a cautious yet steady note, taking direction from global signals while regional economic initiatives and investment flows provided underlying support. With investors awaiting clarity from U.S. Federal Reserve policy guidance, trading across the Gulf Cooperation Council (GCC) and North Africa was subdued but resilient.
Regional performance
In the Gulf, markets such as Saudi Arabia’s Tadawul and UAE indices were expected to post modest gains, supported by stable oil prices and continued government-backed investment. While direct trading data remained limited, sentiment was anchored in broader global market trends, with cautious optimism prevailing after eurozone business activity data came in stronger than expected.
Across North Africa, countries such as Egypt and Morocco are poised to benefit from sustained capital inflows and infrastructure commitments. Recent announcements from the Saudi Fund for Development (SFD) highlighted ongoing investments in housing and industrial projects across Africa, underscoring the region’s importance in long-term growth strategies.
Drivers of sentiment
Oil demand stability continues to act as a key anchor for GCC markets, with prices holding firm on expectations of resilient Asian consumption. At the same time, policymakers across Africa are seeking to shield domestic economies from global volatility by securing multilateral financing and strengthening regional integration initiatives.
Investors remain mindful of risks stemming from U.S. interest rate moves, currency fluctuations, and geopolitical uncertainties. However, the strategic positioning of regional sovereign funds and steady domestic consumption patterns have provided resilience against wider global caution.
Outlook
Overall, Arab and African markets are trading in line with broader global sentiment—subdued, but underpinned by strong regional fundamentals and state-driven capital deployment. While today’s focus remains on Powell’s remarks in Jackson Hole, the region’s markets are seen as maintaining stability, with selective upside supported by oil-linked revenues and targeted development finance.
REFH – Newshub, 22 August 2025
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