GCC Capital Markets Newsletter – 4Q25

GCC markets advanced in 4Q25, underpinned by improved global risk sentiment, resilient non-oil expansion, and dovish Fed signals despite oil price softness. Equities delivered mixed but stable performance, while bond spreads tightened on sustained demand and elevated sovereign issuance. IPO activity moderated sequentially, though non-oil momentum remained intact, supporting investor confidence. Looking ahead, continued fiscal backing and structural diversification reforms are expected to anchor macro stability and drive steady capital inflows into the region.