By Amna Mariyam
Most Gulf equities ended higher on Monday as U.S. President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries.
The White House is close to finalising several trade agreements in the coming days and will notify other countries of higher tariffs by July 9, with the new rates effective August 1, Trump said on Sunday.
Saudi Arabia's benchmark index TADAWUL:TASI rose 0.3%, helped by a 0.8% gain in oil giant Saudi Aramco TADAWUL:2222.
Oil shrugged off the impact of OPEC+ hiking output more than expected for August as well as concerns about the potential impact of U.S. tariffs, with prices mostly reversing early losses as a tight physical market lent support.
In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia.
The uncertainty surrounding oil prices, especially with OPEC+ gradually increasing production, remains a key risk for the Saudi market, said Joseph Dahrieh, managing principal at Tickmill.
"However, the market could find support as Saudi Arabia expands its share in the oil market," he said.
Dubai's benchmark index DFM:DFMGI gained 0.9%, hitting a 17-year high, driven by financial shares. Emirates NBD DFM:EMIRATESNBD jumped 2.3%, while Dubai Islamic Bank DFM:DIB rose 1%.
According to Dahrieh, the Dubai stock market's strong fundamentals suggest potential for further growth, while U.S. trade policy risks could continue to weigh on sentiment.
In Abu Dhabi, the index ADX:FADGI added 0.3%, with Burjeel Holdings ADX:BURJEEL surging 14.7% after announcing expansion into Saudi Arabia.
Meanwhile, Trump announced plans to impose an additional 10% tariff on countries aligning with the "anti-American policies" of the BRICS bloc, which includes the United Arab Emirates. While Saudi Arabia attended a BRICS meeting in April, it has not formally joined the group.
Qatar's benchmark index QSE:GNRI added 0.5%, helped by a 1.5% increase in Qatar International Islamic Bank QSE:QIIK.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 finished 0.4% higher, with electronic payments provider Fawry EGX:FWRY climbing 2.4%.
SAUDI ARABIA
TADAWUL:TASI rose 0.3% to 11,345
ABU DHABI
ADX:FADGI up 0.3% to 10,007
DUBAI
DFM:DFMGI advanced 0.9% to 5,803
QATAR
QSE:GNRI gained 0.5% to 10,801
EGYPT
EGX:EGX30 added 0.4% to 33,038
OMAN
(.MSX30) was up 0.3% to 4,578
KUWAIT
(.BKP) increased 0.5% to 9,193