Stock markets across the Gulf rallied on Monday, buoyed by growing investor optimism that the U.S. Federal Reserve may soon begin easing interest rates. The positive sentiment rippled across the region, with Egypt’s benchmark index stealing the spotlight by hitting a record high, signaling renewed confidence in its recovering economy.
Investors interpreted recent comments from Federal Reserve officials and softer U.S. inflation data as potential signs that the central bank may pause or reduce rates in the near future a move that would benefit emerging markets and oil-exporting nations by easing capital outflows and borrowing costs.
In the Gulf region, major indexes closed in the green:
- Saudi Arabia’s Tadawul All Share Index saw modest gains led by banking and petrochemical sectors.
- Dubai’s main index climbed as real estate and financial stocks surged, while Abu Dhabi followed suit on strong energy sector performance.
- Qatar and Kuwait also recorded upward movement, lifted by regional tailwinds and investor repositioning.
But the day’s biggest headline came from North Africa, where Egypt’s EGX 30 index surged to a historic high, supported by foreign inflows and improved macroeconomic signals. The rally reflects growing confidence in the Egyptian government’s ongoing economic reforms and debt restructuring strategies.
Analysts say the broader Middle East and North Africa (MENA) region stands to benefit significantly if the Fed loosens its monetary policy, especially as energy prices stabilize and local currencies strengthen.
“The sentiment shift from the Fed has been like fresh oxygen for emerging markets. Regional bourses are reacting to both global signals and localized recovery stories,” said Nour El-Din, a Cairo-based financial analyst.
As investors continue to track signals from Washington and monitor geopolitical developments, regional markets appear to be entering a cautiously optimistic phase, with Egypt’s latest milestone acting as a symbol of the potential upside across MENA economies.
source:brecorder.com
