SURPRISE: Gulf Markets on the Rise What’s Driving the Rate-Cut Speculation?

In recent weeks, there has been growing speculation about the possibility of rate cuts in the Gulf markets. This speculation has led to a surge in investor optimism, resulting in gains across most Gulf markets. The anticipation of rate cuts has been fueled by a combination of factors, including global economic trends and local market conditions. Retail sales fell 0.8% last month, the most since March 2023, according to the US Commerce Department’s Census Bureau. Economists polled by Reuters predicted a 0.1% decline. Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the US dollar and closely follow Fed policy moves. Saudi Arabia’s benchmark index rose 0.1%, reaching its highest level since August 2022, aided by a 5.7% increase