Mideast Stocks: Most Gulf bourses fall on weaker oil, recession worries

Mideast Stocks: Most Gulf bourses fall on weaker oil, recession worries

Most Gulf stock markets were subdued in early trade on Thursday, as oil prices extended losses on fears over weaker demand and China's fresh COVID-19 restrictions.

Crude prices, a key catalyst for the Gulf's financial markets, dropped on worries that aggressive interest rate hikes from global policymakers would slow economies and dent demand, while renewed coronavirus restrictions in China also added pressure.

China's factory activity contracted for the first time in three months in August amid weakening demand, a private sector survey showed.

Saudi Arabia's benchmark index dropped 0.5%, set to extend losses for a second session, hit by a 1.6% fall in Dr Sulaiman Al-Habib Medical Services and a 0.4% decrease in Al Rajhi Bank.

The Qatari index retreated 1%, as most of the stocks on the index were in negative territory, including Qatar Islamic Bank, which was down 2.2%.

Separately, QatarEnergy will build the world's largest "blue" ammonia plant, which is expected to come online in the first quarter of 2026 and to produce 1.2 million tonnes per year, chief executive and state minister for energy Saad al-Kaabi said on Wednesday.

In Abu Dhabi, the index dropped 0.3%, with the United Arab Emirates' biggest lender First Abu Dhabi Bank losing 0.4%.

This month, both the