Saudi Stocks Near 2-Year Low as Gulf Bets on Fed Cuts

- U.S. rate cut hopes buoy Gulf markets, but Saudi declines persist. - Tadawul All Share Index slips further amid sector-specific losses. On September 14, 2025, Cryptopolitan reported that weaker-than-expected U.S. labor data lifted most Gulf stock markets, as the data bolstered hopes for a U.S. Federal Reserve interest rate cut. However, Saudi Arabia's Tadawul All Share Index fell by 0.2%, nearing a two-year low amid ongoing sector-specific pressures. Despite the broader regional optimism, Saudi Arabia faced continued declines. Al Rajhi Bank lost 0.4%, and ACWA Power fell 2.7%. Meanwhile, Aramco posted a marginal 0.1% rebound after hitting a five-year low the previous day, offering limited support to the market. In contrast, other regional markets capitalized on the positive sentiment. Gains in the banking sector drove Qatar's stock index up by 0.4%, with Qatar Islamic Bank shares contributing a 1% increase. Orascom Construction led Egypt's EGX30 index to a 0.5% climb, marking its third consecutive day of growth, after its stock surged 4.7% upon its debut on Abu Dhabi's main index. In the energy sector, the UAE’s Dragon Oil signed a $30 million agreement with the Egyptian General Petroleum Corporation to drill two new wells in the East El-Hamd area of the Gulf of Suez, a deal that underscores the region's commitment to boosting oil production capacity. Elsewhere in the Gulf, markets delivered mixed performances, as Oman’s MSX30 index edged up 0.2% and Kuwait’s BKP index added 0.8%, while Bahrain’s BAX index dipped 0.1%. A potential rate cut by the Federal Reserve remains a dominant force shaping market sentiment, especially because most Gulf currencies are pegged to the U.S. dollar. The weak U.S. labor market data reinforced these expectations, influencing stock movements sensitive to exchange rates.