Kuwait: Kuwaiti equities recovered sharply in April, signaling confidence in the domestic markets after the easing of geopolitical tensions and the reopening of trade through the St. of Hormuz. The Kuwait All Share Index gained 5.3% in April 2026, with the banking sector index rising 3.1%. The performance of Banking stocks was mixed, with National Bank of Kuwait declining 1.5% m/m, while Gulf Bank and Kuwait Finance House gained 8.2% and 5.0% m/m, respectively, underpinned by robust Q1 2026 earnings. Among premier market stocks, Aayan Leasing and Investment Company and Mabanee Company were the top gainers, with monthly gains of 19.2% and 17.3%, respectively. Aayan Leasing and Investment Company’s subsidiary, Aayan Real Estate Company, entered into a 15-year investment agreement to design, construct, and operate an undisclosed property in Kuwait, with an estimated annual investment of around KD 336,000 ($1.1 million).

Kuwait’s real estate sales fell by 31% q/q in Q1 2026, driven by the geopolitical escalation during March. Residential sales declined by 33% q/q to reach KD 396 million, compared to KD 591 million in Q4 2025. Commercial and investment sales also declined by 21% and 33% q/q, respectively, in Q1 2026, amid heightened uncertainty in the region.

All GCC equity indices, except Saudi Arabia, ended the month in green, with Dubai’s DFM index gaining the most at 6.1%. Overall, the S&P GCC Composite index gained 1.1% over the month. Temporary easing of geopolitical tensions earlier in the month, resulting from a ceasefire agreement and reopening of the Strait of Hormuz, lent support to regional equities. UAE equity markets recovered in April after the resumption of trading, with Real Estate stocks rebounding. Dubai-based Emaar Development gained 8.0% amid robust real estate activity and new project launches. Qatar, Oman, and Bahrain equities rallied, with monthly gains of 2.9%, 2.5%, and 3.8%, respectively, amid easing tensions.

According to Fitch Ratings, the GCC economies have been resilient despite the escalation of regional tensions since March 2026, supported by robust fiscal and external buffers, high sovereign wealth assets, and policy flexibility. However, prolonged instability could weigh on growth, fiscal positions, trade, and tourism, as well as on weaker sovereigns with less robust balances. In response, GCC authorities have introduced targeted support measures, including liquidity relief, business support packages, SME financing, rent waivers, loan deferrals, and wage support.

The MSCI World Index and the S&P 500 gained 9.4% and 10.4%, respectively, during April 2026. The performance reflected easing tensions between the U.S. and Iran, improving economic activity, and robust earnings. The Nasdaq Composite index gained 15.6% amid AI-led earnings growth despite energy price concerns. Emerging Markets, as measured by the MSCI EM Index, gained 15.8% during the month, primarily due to gains in heavily weighted blue-chip stocks. Samsung Electronics and Taiwan Semiconductor Manufacturing, which together account for roughly 18.4% (as of Mar 2026) of the index, increased by 22.8% and 11.8%, respectively. Among EM markets, South Korea and Taiwan gained 30.6% and 22.7%, respectively. Meanwhile, China’s Shanghai Composite Index increased by 5.7% for the month, driven by robust manufacturing activity in April, with S&P Global reporting a PMI of 50.3 for the month, beating estimates.

The yield on the 10-year U.S. Treasury notes increased by 10 bps during the month to 4.40%, reflecting heightened concerns about near-term inflation. This increase was primarily driven by sustained high energy prices and prolonged tensions in the Middle East.

Oil (Brent) prices declined over the month, settling at USD 114.0/bbl., reflecting a 3.7% monthly drop. During the month, markets experienced extreme volatility, with Brent surging to an intraday high of USD 126.0/bbl. on April 30, amid stalled ceasefire talks between the U.S. and Iran and the UAE’s exit from OPEC. The UAE’s announcement brings renewed focus to the GCC’s geopolitical dynamics. The move could allow the country to raise production from its low-cost reserves while simultaneously challenging OPEC cohesion.

Against this backdrop, the IMF in its World Economic Outlook (WEO) April 2026, maintained its 2026 real GDP growth at 3.1% y/y, similar to estimates in WEO October 2025. IMF also revised the GDP forecast for the GCC downward by 230 bps to 2.0% in 2026, from 4.3% previously estimated in the Regional Economic Outlook in October 2025, citing inflationary pressures and trade disruptions.

The key driver of market movements in May 2026 is expected to remain ongoing geopolitical tensions in the Middle East, with markets focusing on the conflict's resolution and fallout. GCC equity markets may remain sensitive to capital-flow risks, inflation concerns, and sector-specific pressures in real estate, aviation, tourism, and logistics. Globally, markets are likely to remain highly reactive to energy prices, inflationary concerns, and signs of either escalation or de-escalation in the Middle East.

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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 KD 1.52 billion (USD 4.96 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 help 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