ع
Kuwait Financial Centre Markaz stated in its Monthly Market Review for May 2026 that local equities demonstrated resilience despite ongoing geopolitical uncertainty across the region. The Kuwait All Share Index finished the month with a modest 0.5 percent decline. Banking sector shares delivered mixed results according to the review with National Bank of Kuwait down 1.0 percent month on month and Kuwait Finance House off 1.3 percent while Gulf Bank advanced 3.2 percent supported by robust first quarter earnings.
Premier market stocks produced some of the strongest gains the Markaz report noted with Boursa Kuwait Securities Company rising 9.1 percent and Aayan Leasing and Investment Company increasing 8.7 percent. Boursa Kuwait Securities Company posted a 16.8 percent quarter on quarter rise in net profit even as revenue slipped amid geopolitical headwinds. Real estate sales in Kuwait recovered partially in April 2026 climbing 91 percent month on month to KD 278 million although they remained 2.8 percent lower than the same period a year earlier according to the review.
Kuwait’s inflation rate accelerated to 2.6 percent year on year in April 2026 driven by supply disruptions linked to regional conflicts the Markaz assessment found. Government statistics placed real GDP growth at 2.4 percent year on year in the fourth quarter of 2025 down from 4.7 percent in the preceding quarter with the non oil sector contracting 1.4 percent. Full year growth for 2025 reached 2.7 percent the figures show.
All major GCC equity indices registered only modest moves in May except for Oman according to the Markaz review with the S&P GCC Composite index declining 1.0 percent overall. Oman’s MSX 30 index dropped 7.3 percent as liquidity shifted toward a major initial public offering amid persistent geopolitical concerns. Saudi Arabia’s Tadawul index eased 1.0 percent while Dubai’s DFM and Abu Dhabi’s ADX fell 0.1 percent and 0.8 percent respectively.
A State Street Global Advisors assessment published in April 2026 highlighted the resilience of GCC equities over the past decade even amid volatile energy prices with current valuations at a discount to historical averages. MSCI data for the GCC Countries Domestic Index through June 2026 reflected continued structural reforms supporting medium term stability across the bloc. Saudi Arabia recorded real GDP growth of 2.8 percent in the first quarter of 2026 while the fiscal deficit widened amid lower oil revenues and elevated project spending the Markaz report added.
Global equity benchmarks advanced during the month the review indicated as the MSCI World Index rose 4.4 percent the S&P 500 gained 5.1 percent and the Nasdaq Composite climbed 10.5 percent on technology sector strength. The MSCI Emerging Markets Index increased 9.5 percent led by gains in South Korea and Taiwan where key semiconductor firms posted significant advances. Brent crude oil prices settled at USD 92.05 per barrel after a 19.3 percent monthly decline as expectations around a potential ceasefire extension eased supply disruption fears.
Kuwait Financial Centre Markaz established in 1974 reported total assets under management of more than KD 1.45 billion as of March 31 2026. The institution has introduced several pioneering investment vehicles in the MENA region over the decades including the first domestic mutual fund and real estate investment fund in Kuwait. Market movements in June 2026 are expected to hinge on further geopolitical developments surrounding U.S. Iran relations the Markaz review concluded with GCC equities likely to stay sensitive to diplomatic progress and energy price shifts.
