Gulf markets fall as Israel-Iran conflict escalates
Israel and Iran launched fresh attacks on each other overnight into Sunday
Updated 15 June 2025
Reuters
DUBAI/BANGALORE: Stock markets across the Gulf fell on Sunday morning after Israel and Iran launched fresh attacks on each other overnight, sparking fears of a widening conflict in the Middle East.
Israel said it had targeted Iran’s nuclear facilities, ballistic missile factories and military commanders in strikes that started on Friday and continued over the following days, in what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon.
Iran responded by launching attacks on Israel and calling off Sunday’s nuclear talks that the US said were the only way to halt Israel’s bombing.
The Qatari stock market index slid 2.9 percent by around 10:15 Saudi time, with almost all constituents in negative territory. Among them, Qatar Gas Transport Nakilat extended losses and was down 3.1 percent, while Qatar Electricity and Water Company was down 1.7 percent.
Qatar National Bank, the Gulf’s biggest lender, retreated 3.3 percent.
Israel late on Saturday attacked Iranian energy infrastructure, including an offshore installation on the South Pars gas field, which Iran shares with Qatar, and is the source of most of the gas produced in Iran, stoking fears of potential disruption to the region’s energy exports.
Saudi Arabia’s benchmark index recovered some ground to trade 1.6 percent lower, after plunging 3.6 percent at the open as stocks fell across sectors.
In Kuwait, where the main index was down 4.3 percent, shares in Jazeera Airways fell as much as 10 percent, as airlines avoided the airspace over most of the region.
Elsewhere in the Gulf and wider Middle East, the Muscat Stock Exchange registered a 1.5 percent fall, the Bahrain index eased by 0.8 percent, while Tel Aviv stocks opened lower by 1.5 percent.
Oman was a mediator between Iran and the US in the nuclear talks.
The Dubai and Abu Dhabi bourses in the UAE, which will reopen on Monday, closed down 1.9 percent and 1.3 percent, respectively, on Friday.
Closing Bell: Saudi main index ends lower at 11,253
Parallel market Nomu edged down 41.88 points to close at 27,437.62
MSCI Tadawul Index fell 0.19% to 1,442.43
Updated 12 sec ago
Nirmal Narayanan
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, shedding 24.01 points, or 0.21 percent, to close at 11,252.90.
The total trading turnover on the benchmark index stood at SR4.04 billion ($1.08 billion), with 98 stocks advancing and 148 declining.
The Kingdom’s parallel market Nomu edged down by 41.88 points to close at 27,437.62, while the MSCI Tadawul Index fell 0.19 percent to 1,442.43.
The best-performing stock on the main market was SHL Finance Co., with its share price rising 9.98 percent to SR21.26. Al Sagr Cooperative Insurance Co. followed, gaining 6.47 percent to SR14.80, while Fawaz Abdulaziz Alhokair Co. climbed 5.80 percent to SR33.20.
Zamil Industrial Investment Co. recorded the steepest decline of the day, with its share price falling 2.75 percent to SR46.00.
On the announcement front, Almoosa Health Co. said it signed an SR192 million contract with MASAH Specialized Construction Co. to carry out preliminary construction and foundation work for the Almoosa Specialist Hospital project in Al-Hofuf.
In a press statement, the company said the financial impact of the 14-month contract will be reflected after the completion of the hospital’s construction. The company added that there are no related parties involved in the deal.
Almoosa Health’s share price inched up 0.12 percent to close at SR165.00.
Sports Club Co. completed its retail offering ahead of its planned listing on the Kingdom’s main market. Saudi Fransi Capital, the lead manager, financial adviser, bookrunner, and underwriter for the IPO, confirmed the development.
According to a statement, 259,690 investors participated in the retail subscription period, with a final offer price of SR7.50 per share. Saudi Fransi Capital added that retail orders totaled approximately SR247.7 million, representing an oversubscription rate of 533.6 percent.
PIF launches Tasama to deliver world-class business services in Saudi Arabia
Company aims to support public and private sectors
It seeks to advance business services as a strategic sector in the Kingdom
Updated 13 July 2025
Reem Walid
RIYADH: Businesses operating in Saudi Arabia — including international firms setting up regional headquarters — are set to benefit from the launch of Tasama, a new integrated business services platform established by a subsidiary of the Public Investment Fund.
Tasama was created through the merger of the Business Incubators and Accelerators Co., previously owned by the Saudi Technology Development and Investment Co. or TAQNIA, with PIF’s Shared Services Center. The company aims to support both the public and private sectors, according to an official statement.
The launch forms part of PIF’s broader strategy to diversify the Saudi economy and deepen its collaboration with the private sector by accelerating the growth of local enterprises and easing the entry of global firms into the Kingdom’s business environment.
تسامى لتبدأ خطوة جديدة من خدمات الأعمال المتكاملة والمصممة لدفع النمو، وتمكين الرؤى الطموحة، وتطوير القطاعات بخدمات متقدمة، واليوم #بكم_نتسامى#إحدى_شركات_الصندوق
Tasama—ushering in a new era of integrated business services designed to drive growth, empower bold visions, and… pic.twitter.com/eHeq2V7j5q
It also comes as PIF surpasses $1 trillion in assets, marking a major global milestone. According to Global SWF, the fund is now shifting focus from rapid expansion to a new phase defined by solvency, strategic discipline, and long-term sustainable returns.
“The company seeks to advance business services as a strategic sector in the Kingdom, and to contribute effectively to supporting economic diversification by providing support to strategic sectors,” said Mohammed bin Nasser Al-Jasser, CEO of Tasama.
Al-Jasser added that the company remains committed to “fostering innovation, empowering Saudi talent, and enhancing national competencies,” building on BIAC’s track record across public and private sector partnerships.
He further emphasized Tasama’s ambition to evolve the business services sector, positioning the firm as a “key partner in shaping its future and ongoing progress,” while contributing to the expansion of the Kingdom’s tech ecosystem and broader commercial landscape.
Congratulations to @Tasama_ksa, a PIF company formed to strengthen Saudi Arabia’s thriving business ecosystem and drive further growth in the private sector. https://t.co/igkFGEYmqK
According to the statement, Tasama will offer a full suite of services aimed at boosting operational efficiency, supporting companies through their launch and growth phases, and assisting international firms in establishing their regional bases in Saudi Arabia.
The platform will provide end-to-end support, including accounting, human resources, and procurement services, along with access to digital tools, business incubators, and workspace solutions.
Tasama also plans to expand nationwide, with the goal of becoming the leading provider of business services across Saudi Arabia.
Earlier this month, Global SWF noted that the Kingdom’s sovereign wealth fund — which recently posted an 18 percent rise in assets under management to SR4.32 trillion ($1.15 trillion) in 2024 — is now focused on “solvency over scale” and “substance over show.”
This strategic pivot underscores a broader recalibration of Vision 2030’s investment engine, balancing domestic megaproject development with financial discipline, international outreach, and responsible capital deployment.
Tourism contribution to GDP rose to 2.7 billion rials
Government continues to adopt innovative marketing strategies
Updated 13 July 2025
MOHAMMED AL-KINANI
JEDDAH: Oman’s tourism sector contributed over 2.12 billion rials ($5.51 billion) to the Gulf country’s national economy in 2024, up from 1.75 billion rials in 2018, according to official data.
The latest figures from the National Center for Statistics and Information indicate that this increase reflects a compound annual growth rate of 3.2 percent, reinforcing the industry’s role as a key pillar in the sultanate’s economic diversification strategy.
The sector’s contribution to gross domestic product also rose to 2.7 billion rials, up from 2.3 billion rials in 2018, underscoring tourism’s expanding macroeconomic impact, according to the Oman News Agency.
The country’s growing appeal among European tourists, alongside strong local and regional demand, reflects its broader strategy to diversify its tourism base and bolster the hospitality sector, in line with similar initiatives across Gulf Cooperation Council member states.
Minister of Heritage and Tourism Salim bin Mohammed Al-Mahrouqi said the growth in visitor arrivals, spending, and economic value reflects the result of focused and ambitious efforts by the ministry to promote Oman as a rich and diverse tourism destination, according to ONA.
He added that the latest indicators serve as a testament to the government’s economic diversification policies and effective inter-agency coordination that supports investment and accelerates project implementation.
Al-Mahrouqi also said that the ministry continues to adopt innovative marketing strategies, strengthen partnerships with the private sector, and develop offerings to enhance the overall visitor experience.
GDP growth forecast at 2.2% in 2025
The sultanate’s economy is forecast to grow by 2.2 percent in 2025, up from 1.7 percent the previous year, supported by a recovery in oil activities and steady non-oil sector expansion, according to the Ministry of Economy’s 2025 economic outlook.
Inflation is projected to rise modestly to 1.3 percent, up from 0.6 percent in 2024. Still, it will remain within the target range of Oman’s 10th five-year plan, aided by continued government subsidies and stable global commodity prices.
The ministry estimates GDP at constant prices will increase from 38.3 billion rials in 2024 to 39.2 billion rials in 2025. Oil activities are expected to rebound with 1.3 percent growth after a 3 percent contraction in 2024, while non-oil sectors are projected to grow by 2.7 percent.
Medium-term momentum is expected to continue through 2026 and 2027, bolstered by strategic projects and higher oil production, ONA reported.
Kuwait unveils major capital market reforms to boost efficiency, attract global investments
Measures include introducing sub-account numbering to enhance transparency
Reforms aim to align financial market infrastructure with global standards
Updated 13 July 2025
MIGUEL HADCHITY
RIYADH: Kuwait has introduced a central counterparty clearing framework, upgraded brokerage standards, and streamlined settlement systems as part of a sweeping reform to modernize its capital markets and boost investor confidence.
The measures, launched as part of the second stage of Phase Three of the Market Development Program, include introducing sub-account numbering to enhance transparency, as well as upgrading IT infrastructure to support future listings of exchange-traded funds and fixed-income instruments such as bonds and sukuk, according to a press release.
Led by Kuwait’s Capital Markets Authority in coordination with Boursa Kuwait and the Central Bank of Kuwait, the reforms aim to align the country’s financial market infrastructure with global standards while reducing risk and enhancing market depth.
The Market Development Program is a strategic initiative under the country’s Vision 2035 plan, aimed at diversifying the economy, enhancing private sector participation, and modernizing key sectors such as finance, infrastructure, and technology.
Mohammad Saud Al-Osaimi, CEO of Boursa Kuwait, said: “The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards.”
A Kuwaiti man sits on a bench outside the Kuwait Stock Exchange. File/Reuters
He added: “It is the product of close collaboration across the capital market apparatus and represents a key step in expanding the depth, transparency and resilience of Kuwait’s capital market.”
Boursa Kuwait Chairman Bader Nasser Al-Kharafi said that the collaboration has played a vital role in advancing market infrastructure and introducing sophisticated products and services that promote a more transparent and dynamic investment environment.
He added that these efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources.
The measure introduced several key reforms, including the implementation of a Central Counterparty Framework to reduce settlement risks and align clearing processes with global standards.
It also streamlined cash settlements through the KASSIP system, facilitating smoother transactions via local banks and the Central Bank of Kuwait. Additionally, brokerage firms were upgraded to “Qualified Broker” status to enhance market structure, while sub-account numbering was introduced to improve transparency under omnibus accounts.
Furthermore, IT infrastructure upgrades were made to prepare for the introduction of ETFs and fixed-income trading, including bonds and sukuk, pending necessary legislative changes.
This phase marks one of the most significant overhauls since the privatization of Boursa Kuwait, reinforcing the market’s role in driving economic growth.
“We greatly value the remarkable efforts that have driven the various phases of the Market Development Program for Kuwait’s capital market, a reflection of the power of constructive cooperation between the public and private sectors, which stands as a national model for realizing economic objectives and development ambitions rooted in innovation and professionalism,” Al-Kharafi said.
The CMA and Boursa Kuwait reaffirmed their commitment to further developing the market’s infrastructure, supporting sustainable growth, and reinforcing Kuwait’s status as a premier investment destination.
Privatized in 2019, Boursa Kuwait operates one of the GCC’s oldest exchanges, driving market modernization and emerging-market reclassification.
Majority Saudis use AI tools to make travel decisions: Survey
46% of Saudi travelers are using AI assistants to discover activities
46% prioritize safety and security when selecting destination
Updated 13 July 2025
Nirmal Narayanan
RIYADH: Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations, according to a survey.
In its latest report, global consumer insights provider Toluna revealed that 46 percent of Saudi travelers are using AI assistants to discover activities, while 43 percent use them for translation purposes.
These findings align with the broader trend observed in the Kingdom, where the number of people using AI tools is increasingly rising.
In June, a report prepared by Google with UK-based research agency Public First showed that 80 percent of Saudi adults use AI tools, with one in three utilizing them regularly.
This is nearly double the share of adults in the US who report using large language model-based chatbots, which stood at 52 percent according to a study by Elon University in North Carolina.
“AI is becoming a trusted travel companion, and not just among younger generations. From finding hidden gems and translating on the go, to getting activity suggestions, young Saudi travelers are making the most of AI to enhance every part of their journey,” said Georges Akkaoui, enterprise account director Middle East, Turkiye, and Africa at Toluna.
The survey said 43 percent of Saudi travelers use AI to find the best deals, while 31 percent rely on these technologies to optimize their itineraries, and 38 percent use them for restaurant suggestions.
“What is interesting is that this (use of AI) is not limited to the tech-savvy; we are seeing notable adoption even among older travelers, with over 40 percent of 45–60-year-olds also using AI for deals, activities, and translation,” said Akkaoui.
The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling #SaudiVision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.#GrowingTourismhttps://t.co/72A8QdOkHC
— Ahmed Al Khateeb أحمد الخطيب (@AhmedAlKhateeb) June 22, 2025
He added: “In fact, less than 15 percent of respondents are not using AI for their travels. This shows that generative AI is no longer niche, it is becoming mainstream, cross-generational, and it is already reshaping how people prepare for and experience their trips.”
These findings also underscore the progress of AI adoption in Saudi Arabia, with the technology emerging as a key component of the Kingdom’s post-oil economic development strategy.
According to the Global AI Competitiveness Index released in January, the Kingdom ranked 15th globally in research output in the sector, having produced 29,639 AI-related publications.
This ranking places it among the top contributors to global research and highlights its emerging role as a regional technology leader.
Saudi Arabia’s Public Investment Fund, in partnership with Google, launched Project Transcendence in 2024, a $100 billion undertaking, as part of its efforts to advance the growth of AI.
The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms, positioning the Kingdom at the forefront of regional innovation.
Traditional sources remain strong
Despite the significant adoption of AI tools in the travel sector, traditional information sources, along with influencers and online recommendations, continue to play an important role in shaping travel decisions among Saudi travelers.
The Toluna survey said 41 percent of the Kingdom’s travelers still rely on recommendations from family members and friends.
Some 46 percent of Saudi travelers prioritize safety and security when selecting destinations, while 48 percent consider scenery as the decision-making factor.
“Despite having access to more information than they can possibly digest, and probably because of that overload, many still turn to those they trust for inspiration, with family and friends remaining an important source of travel recommendations,” said Akkaoui.
The survey said 47 percent of the respondents plan to travel internationally this summer, while 37 percent are opting for leisure trips within the Kingdom. Shutterstock
“At the same time, it is not surprising that, as with other aspects of their lives, younger travelers also rely on influencers and online recommendations for ideas and inspiration, showing how digital and personal guidance now shape the travel journey side by side,” he added.
Meanwhile, 47 percent of the respondents plan to travel internationally this summer, while 37 percent are opting for leisure trips within the Kingdom.
Only 4 percent of respondents reported having no travel plans, highlighting a strong overall appetite for summer travel.
Underscoring the growth of domestic tourism in May, Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb said the Kingdom is placing human-centered travel at the forefront of its tourism strategy, focusing on authentic cultural experiences, meaningful interactions, and community engagement.
He added that this people-first approach is designed to balance the nation’s rapid infrastructure development with heritage preservation and stronger community connections.
The National Tourism Strategy targets 150 million annual visitors by 2030, after surpassing the 100 million milestone ahead of schedule, with official data showing the Kingdom welcomed 116 million tourists in 2024, exceeding its annual target for the second consecutive year.
Turkiye, the most preferred destination
The survey found that 19 percent of Saudi travelers prefer Turkiye as their favorite destination to visit, followed by Egypt at 15 percent, the UAE at 14 percent, and the US at 10 percent.
Additionally, 8 percent of respondents are heading to Switzerland, 7 percent to the UK, France, and Thailand, while 6 percent have chosen Italy as their summer destination.
“While Turkiye remains the top destination across all age groups, younger travelers show a stronger interest in long-haul and East Asian locations. For example, Japan appeals to 14 percent of 18–28-year-olds, compared to just 3 percent of those aged 29–44, and 0 percent among travelers aged 45–60,” said the report.
In contrast, 14 percent of older travelers aged between 45 and 60 are planning a trip to the UK, a destination that sees less interest from younger respondents as a summer getaway.
In terms of spending, most international travelers are willing to invest significantly in their summer experiences.
The report also said 40 percent of Saudi travelers are planning to set aside more than SR10,000 ($2,666.39) per person on their trips, while 22 percent expect to spend between SR7,500 and SR10,000.
Some 21 percent of the respondents are ready to spend between SR5,000 and SR7,500, while 15 percent are planning to budget between SR2,500 and SR5,000.
The report further said that 40 percent of respondents regularly use eSIM cards while traveling, with 21 percent having tried it before and 20 percent expressing interest despite limited familiarity.
“The evolving travel preferences of Saudi residents reflect broader global shifts toward more connected, experience-driven tourism,” said Akkaoui.
“Whether it is the desire for natural beauty, the pursuit of cultural depth, or the appeal of cooler summer climates, today’s travelers from the Kingdom are more informed, digitally empowered, and adventurous than ever before,” he added.
