Most Gulf stock markets settled lower on Thursday, with Dubai's main index (.DFMGI), opens new tab snapping five consecutive sessions of gain, after ratings agency Fitch warned that the real estate prices of the emirate are likely to face a double-digit fall in the second half of this year and 2026.
The agency said that a rise in deliveries in 2025 and 2026 to a planned 210,000 units is likely to cause a record increase in supply and push prices down by no more than 15%.
In Dubai, real estate development company Emaar Properties (EMAR.DU), opens new tab, known for its notable works like Dubai Marina, Dubai Creek Harbour and the Dubai Mall, was down 1.48%. The index was down 0.61%.
Real estate plays a crucial role in the economy of Dubai, a hub for business and tourism for most Gulf regions.
Meanwhile, oil prices rose on Thursday after a U.S. court blocked most of U.S. President Donald Trump's tariffs, with markets keeping a close eye on possible new sanctions curbing Russian crude flows and an OPEC+ decision expected later this week on an output hike in July.
The ruling bolstered the global market's risk appetite. However, analysts have warned that the reprieve may only last temporarily as The White House quickly appealed the decision and could take it to the Supreme Court.
Saudi Arabia's benchmark stock index (.TASI), opens new tab settled down 0.56%. Real state companies in the kingdom also took a hit, with Makkah Construction and Development (4100.SE), opens new tab losing 5.65% and Jabal Omar (4250.SE), opens new tab was down 4.52%.
"The Saudi bourse remained relatively volatile after rebounding from its low. While a rise in oil prices could provide support, the downside risks weigh on sentiment," said Hani Abuagla, Senior Market Analyst at XTB MENA.
"The market remained on a downtrend overall, but could find support from successful initial public offerings."
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab finished flat.
Qatar's benchmark stock index (.QSI), opens new tab settled down 0.72%, with Vodafone Qatar (VFQS.QA), opens new tab losing 2.91%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab , finished up 0.62%. Real estate company Emaar Misr (EMFD.CA), opens new tab was down 2.32% and Telecom Egypt (ETEL.CA), opens new tab finished 2.33% lower.
The Central Bank in Egypt also lowered its overnight interest rates last week by a less-than-expected 100 basis points.
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