By: Qatar tribune

Gulf equity markets retreated on Tuesday amid heightened regional tensions, as Saudi Arabia and the United Arab Emirates traded sharp rhetoric over Yemen. Saudi-led coalition airstrikes targeting UAE-backed southern separatists, coupled with Riyadh’s demand that Emirati forces exit Yemen, contributed to a sell-off across key bourses.

Dubai’s main share index dropped 2%, marking its largest single-day decline since June. Abu Dhabi and Saudi Arabia’s benchmarks each fell 1%. Among notable decliners, Emaar Properties slid 2.8%, Dubai Islamic Bank lost 2.3%, and Saudi Arabian Mining retreated 2.6%. Oil prices held steady as investors balanced dimming prospects for a Ukraine peace deal with rising Middle East strains.

Bahrain’s index bucked the trend, rising 0.6% after the government announced fiscal reforms. Egypt’s blue-chip index edged down 0.1%. The moves underscore how geopolitical friction between traditional Gulf allies can swiftly ripple through regional financial markets.