Gulf markets subdued on geopolitical tensions, US rate cut concerns | Reuters

Gulf markets subdued on geopolitical tensions, US rate cut concerns | Reuters

Most stock markets in the Gulf were subdued on Sunday amid geopolitical strife and uncertainties surrounding U.S. Federal Reserve policy.

In its first ever direct attack on Israel, Iran sent a barrage of more than 300 missiles and drones on April 13 in what it said was retaliation for Israel's suspected deadly strike on its embassy compound in Damascus on April 1.

Iran's Supreme Leader Ali Khamenei thanked the country's armed forces for their attack on Israel, saying the country had demonstrated its power regardless of how many targets were hit, Iran's official news agency reported on Sunday.

Elsewhere Chicago Federal Reserve President Austan Goolsbee said on Friday progress on bringing down inflation had "stalled" this year, becoming the latest U.S. central banker to drop an earlier focus on the coming need for interest rate cuts.

Among individual Middle East markets, Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 2.6% rise in ACWA Power (2082.SE), opens new tab.

The International Monetary Fund said on Thursday Middle East economies would grow at a slower pace this year than it previously projected, as the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs.

The IMF revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook.

The Qatari benchmark (.QSI), opens new tab dropped 0.4%, hit by a 1.6% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 1% drop in Qatar Islamic Bank (QISB.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1%, after falling more than 4% in the previous sessions, led by a 1.4% rise in top lender Commercial International Bank (COMI.CA), opens new tab.

Equities have struggled recently following a five-month rally that started in November. Brad Bernstein, managing director at UBS Private Wealth Management, explains.

Meanwhile, the Central Bank of Egypt's net foreign assets (NFAs) deficit fell in March to its lowest in more than two years, apparently helped by a giant sale of property development rights and a reform of the currency, data posted on the CBE website showed.

#Dubai Floods Expose Weakness to Climate Change After #UAE Heavy Rains - Bloomberg

Dubai Floods Expose Weakness to Climate Change After UAE Heavy Rains - Bloomberg

The heavy rains that flooded Dubai this week halted air traffic, damaged buildings and streets — and left climate experts and common citizens asking whether one of the world’s hottest and driest cities should be better prepared for extreme storms.

Weather forecasters knew days in advance that a major storm was heading for the United Arab Emirates and authorities issued warnings asking citizens to stay home. Yet its largest city Dubai was still brought to a halt this week, with one of the worst rain events in decades flooding streets, homes and highways.

“Stormwater management systems were historically deemed an ‘unnecessary cost’ due to the limited rainfall” in the UAE, said Karim Elgendy, an associate fellow at the Environment and Society Centre at Chatham House. “As the variability of rainfall increases across the region and as the likelihood of such events rises, the economic case for such systems becomes stronger.”

Human-caused climate change is making extreme weather events like heat and rain more intense, frequent and harder to predict. The Middle East is forecast to face higher temperatures and a decline in overall rainfall, according to long-term scientific projections. But these very arid places will also experience storms that drop unprecedented rain, according to researchers. That’s forcing governments to consider whether to adapt to rare but destructive events — and how.

Representatives for the UAE government didn’t immediately reply to a written request for comment.