Global economic talk was triggered by the prospect of further tariffs imposed by Trump and an extended deadline to August 1, but Gulf markets remained remarkably calm. With just slight declines seen in the major markets in the region, investors in the United Arab Emirates and Saudi Arabia seemed to ignore the possible trade disruptions. Abu Dhabi’s ADX and Dubai’s DFM Index both ended the day little lower, indicating that profit-taking had replaced panic.
Analysts point to sound market fundamentals and a lack of reflexive sell-offs, despite the Dubai Financial Market (DFM) edging down by about 0.5% and Abu Dhabi’s ADX being in slightly negative territory. The Tadawul index in Saudi Arabia experienced a minor decline of 0.2%.
Globally, Asian stock markets entered positive territory, reflecting a general investor perception that tariff threats, despite their political clout, might not significantly change short-term economic prospects. Strong earnings, stable oil prices, and GCC fiscal changes, according to market analysts, have prevented regional investors from responding harshly to rhetoric about U.S. policies.
But caution wins out. Investors are closely monitoring news out of Washington as the deadline of August 1 draws near. The subdued market response, however, highlights a maturing financial environment in the Gulf, where investor confidence is increasingly influenced by regional development prospects and diversification initiatives rather than transient geopolitical drama.
