Kuwait: Kuwait Financial Centre “Markaz” stated in its Monthly Market Review report that Kuwait equities remained resilient in March 2026, despite sharp drawdowns in global equity markets. The Kuwait All Share Index declined mildly in March 2026 by 1.8%, with the banking sector index falling 0.7%. The performance of Banking stocks was mixed, with National Bank of Kuwait declining 2.8%for the month, while Kuwait International Bank gained 1.4%. According to S&P Global, despite uncertainties stemming from the ongoing geopolitical conflict, the banking sector remains resilient, supported by strong asset quality (NPLs at 1.5%) and high provisioning buffers (around 252%), positioning domestic banks well to absorb potential shocks. Jazeera Airways registered a decline in share price of 22.3% during the month, due to disruptions in operations caused by the closure of Kuwait’s Airport.

S&P Global Ratings reaffirmed Kuwait’s AA-/A-1+ rating with a stable outlook, citing strong fiscal buffers with substantial sovereign wealth fund assets (490% of GDP). The Central Bank of Kuwait introduced a targeted stimulus package to support banking sector resilience and sustain credit flow amid geopolitical uncertainty. Key measures include easing liquidity and capital requirements, raising lending limits to 100%, and releasing part of the capital buffer to enhance banks’ lending capacity and short-term liquidity flexibility while maintaining overall financial stability.

Kuwait’s real estate sales made a strong recovery in February 2026, reaching KD 518 million (119% m/m), after a decline in January 2026. This rise was across all segments, with commercial sales showing the largest increase, reaching KD 184 million, the highest since August 2025. Overall demand was supported by an improvement in non-oil activity and the anticipated real estate financing law. However, the rising geopolitical tensions in the region is expected to weigh on sentiment, leading to softer sales over the next few months.

All GCC equity indices, except Saudi Arabia and Oman, ended the month on a negative note, with Dubai’s DFM index falling the most by 16.4%. Overall, the S&P GCC Composite index declined by 2.3% despite a 5.0% rise in the Tadawul Index. The decline was due to escalating geopolitical tensions and regional security developments. Saudi Arabia’s largest oil producer, the Saudi Arabian Oil Company, recorded a monthly gain of 9.8%, amid rising oil prices. UAE equity markets declined sharply during the month, primarily driven by concerns over potential foreign capital outflows from the real estate sector, which weighed heavily on investor sentiment. Dubai markets witnessed a steep correction as real estate and aviation-linked stocks came under pressure amid fears of reduced external investments and softer demand, with Emaar Properties declining by 27.8% for the month. Similarly, Abu Dhabi’s equity index decreased by 8.9%, largely impacted by weakness in major blue-chip stocks. Abu Dhabi-based Aldar Properties fell by 27.9% amid continued pressure on the real estate sector. Oman equities continued to rally, with the broader index gaining 10.5% during the month. As Oman is not directly affected by the closure of the Strait of Hormuz, investors expect windfall benefits from higher oil prices and the rerouting of trade through Oman. Oman’s structural reforms and speculation regarding a possible MSCI emerging market upgrade also supported gains.

The Central Bank of the United Arab Emirates launched a resilience package easing liquidity and capital buffers while ensuring continued credit flow, including access to up to 30% of cash reserves. The measures are supported by strong system liquidity of AED 920 billion and FX reserves exceeding AED 1 trillion, reinforcing stability amid uncertainty. Reaffirmation of sovereign ratings by S&P across GCC indicates economic stability, with most countries maintaining investment-grade ratings and stable outlooks, supported by strong fiscal buffers and liquidity despite ongoing geopolitical risks.

The MSCI World Index and the S&P 500 declined by 6.6% and 5.1%, respectively, during March 2026. The poor performance reflected oil price volatility and continued pressure on large-cap technology stocks amid inflation fears and uncertainty about monetary policy. The Nasdaq Composite index declined 4.9% during the month amid growing concerns about the Return on investment from increasing AI capex. Emerging Markets, as measured by the MSCI EM Index, declined 13.3% during the month, primarily due to declines in heavily weighted blue-chip stocks. Samsung Electronics and Taiwan Semiconductor Manufacturing, which together account for roughly 19.5% (as of Feb 2026) of the index, declined by 22.8% and 11.8%, respectively. The downturn was further exacerbated by a 11.5% decline in India’s Sensex. Meanwhile, China’s Shanghai Composite Index fell by 6.5% for the month, driven by concerns over a rise in oil prices, as investors reassessed earnings expectations across transportation, industrial, consumer, and other energy-sensitive sectors.

The yield on the 10-year U.S. Treasury notes increased by 33 bps during the month to 4.30%, reflecting heightened concerns about near-term inflation. This increase was primarily driven by a surge in energy prices, alongside growing expectations of a potential Federal Reserve rate hike, as escalating tensions in the Middle East and rising oil prices continue to amplify inflationary pressures.

Oil (Brent) prices closed at USD 118.35/bbl. for the month, gaining 63.3%. During the month, markets witnessed extreme volatility, with Brent surging to nearly USD 120/bbl. intraday, reflecting heightened fears of severe supply disruptions amid escalating geopolitical tensions and risks around the Strait of Hormuz. The sharp move was driven by concerns over constrained supply flows, limited spare capacity among major producers, and the buildup of a significant geopolitical risk premium in oil prices. Despite typically acting as a safe haven during geopolitical events, gold declined by 15% amid the ongoing conflict, primarily due to a stronger U.S. dollar and fading expectations of a Federal Reserve rate cut in June, which reduced its relative appeal.

The key driver of market movements in April 2026 is expected to remain ongoing geopolitical tensions in the Middle East, with markets increasingly focused on the conflict's duration and intensity. The escalation has already led to significant disruptions in energy markets, pushing oil prices higher and reinforcing global inflation concerns. In the GCC, elevated oil prices may provide some support for fiscal positions, though equity markets could remain under pressure from geopolitical overhang and capital-flow risks. In developed and emerging markets, persistent inflation concerns and tighter financial conditions are likely to weigh on equities, with heightened sensitivity to energy prices and policy expectations.

About Kuwait Financial Centre “Markaz”

Established in 1974, Kuwait Financial Centre K.P.S.C “Markaz” is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.52 billion (USD 4.98 billion) as of 31 December 2025. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics, and they have helped Markaz widen investors’ horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz.

For further information, please contact:
Sondos Saad
Corporate Communications Department
Kuwait Financial Centre K.P.S.C. "Markaz"
Email: Ssaad@markaz.com   
markaz.com