Kuwait: Kuwait Financial Centre “Markaz” stated in its Monthly Market Review that Kuwaiti equities remained resilient in May, despite ongoing geopolitical uncertainty in the region. The Kuwait All Share Index was flat in May 2026, with a mild 0.5% decline. The performance of Banking stocks was mixed, with National Bank of Kuwait and Kuwait Finance House declining by 1.0% and 1.3% m/m respectively. Gulf Bank posted gains of 3.2%, underpinned by strong Q1 2026 earnings. Among premier market stocks, Boursa Kuwait Securities Company and Aayan Leasing and Investment Company were the top gainers, with monthly gains of 9.1% and 8.7%, respectively. Boursa Kuwait Securities Company’s net profit increased by 16.8% q/q, despite a decline in revenue due to geopolitical challenges.

Kuwait’s real estate sales recovered partially in April 2026, increasing by 91% m/m to KD 278 million, but remained -2.8% on a y/y basis. Residential sales increased by 44% m/m to reach KD 131 million, compared to KD 91 million in March 2026. Commercial and investment sales also increased significantly, recovering from the near standstill seen in March. Kuwait’s macro backdrop shows rising inflation alongside weakening growth momentum. Inflation accelerated to 2.6% y/y in April 2026, driven by war-related supply disruptions. Kuwait’s Real GDP growth slowed to 2.4% y/y in Q4 2025, according to government statistics, down from 4.7% in Q3 2025. The contraction in the non-oil sector of 1.4% y/y offset stronger oil output, although full-year growth recovered to 2.7% in 2025.

All major GCC equity indices, except Oman, did not show major moves for the month. Oman’s MSX 30 index declined the most at 7.3%, losing some of the gains that it had accumulated during the year. The fall was driven by ongoing geopolitical concerns and liquidity being redirected towards the IPO of Oman India Fertilizer Company. Overall, the S&P GCC Composite index declined by 1.0% during the month. Ongoing uncertainty surrounding peace negotiations and the lack of a clear resolution kept regional equity markets largely flat during the month. Saudi Arabia’s Tadawul Index declined slightly by 1.0%. Saudi Arabia’s largest Bank, Al Rajhi Bank, fell by 1.9% during the month. UAE’s equity markets also stayed flat with Dubai’s DFM and Abu Dhabi’s ADX declining by 0.1% and 0.8%, respectively.

Saudi Arabia’s economy showed signs of moderation in Q1 2026, with Real GDP growth slowing to 2.8% y/y as regional geopolitical tensions and weaker oil sector activity weighed on momentum, while the fiscal deficit widened to a multi-year high of SAR 125.7 billion amid lower oil revenues and elevated spending on Vision 2030 projects. Despite these pressures, inflation remained contained at 1.7% y/y in April, supported by stable fuel prices and easing housing costs, highlighting the resilience of domestic demand. Meanwhile, the UAE’s sovereign credit profile remained resilient, with Fitch Ratings affirming the country’s AA- rating with a Stable Outlook, citing strong fiscal and external buffers, low government debt, and robust hydrocarbon revenues, despite risks from ongoing regional conflict and potential disruptions to trade and energy flows.

The MSCI World Index and the S&P 500 gained 4.4% and 5.1%, respectively, during May 2026, supported by optimism over a potential extension of the U.S.-Iran ceasefire and continued strength in technology stocks. The Nasdaq Composite index gained 10.5% supported by sustained AI-driven technology optimism, strong earnings from semiconductor and software companies, and improving sentiment amid easing geopolitical tensions. Emerging Markets, as measured by the MSCI EM Index, gained 9.5% during the month, primarily due to gains in heavily weighted blue-chip stocks. Samsung Electronics and Taiwan Semiconductor Manufacturing, which together account for roughly 20.2% of the index (as of April 2026), increased by 43.8% and 10.3%, respectively, for the month. Among EM markets, South Korea and Taiwan gained 28.4% and 14.9%, respectively, in May 2026.

The yield on the 10-year U.S. Treasury notes slightly increased by 5 bps during the month to 4.45%, as sticky inflation and higher-for-longer rate expectations outweighed the easing of geopolitical and oil-price risks associated with U.S.-Iran ceasefire extension talks.

Oil (Brent) prices declined over the month, settling at USD 92.05/bbl, reflecting an 19.3% monthly drop, as expectations of a U.S.-Iran ceasefire extension eased concerns over Middle East supply disruptions and reduced the geopolitical risk premium embedded in oil prices. Improved prospects for diplomatic negotiations, alongside expectations of stable crude supplies, outweighed lingering concerns over global demand and inflation.

The key driver of market movements in June 2026 is expected to be geopolitical developments surrounding the U.S.-Iran war. Although risk sentiment improved after reports of an agreement, the ceasefire still awaits U.S. President Trump's approval, leaving room for uncertainty. Consequently, GCC equity markets may remain sensitive to geopolitical developments, capital-flow risks, inflationary pressures, and sector-specific challenges across real estate, aviation, tourism, and logistics. Globally, markets are likely to remain highly responsive to energy price movements and diplomatic progress, with any setback to the ceasefire process potentially reigniting volatility across asset classes.  

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 1.45 billion (USD 4.74 billion) as of 31 March 2026. 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