MIDEAST STOCKS-Saudi bourse leads most Gulf stocks lower as oil prices fall

By Md Manzer Hussain

Dec 14 (Reuters) - Major Gulf stock markets fell on Sunday on weaker oil prices and profit-taking, with sentiment further pressured by concerns over a global supply glut and escalating tension between the U.S. and Venezuela following the seizure of a tanker.

Oil prices – a key driver for Gulf financial markets – settled lower on Friday, posting a 4% weekly decline as oversupply and hopes for a potential Russia-Ukraine peace deal outweighed worries over any impact from the U.S. seizure of an oil tanker off Venezuela's coast.

Saudi Arabia's benchmark index .TASI fell for a second straight session, losing 1.2%, with all sectors in negative territory, led by industry, finance and communications. Al Rajhi Bank 1120.SE, the world's largest Islamic lender, dropped 1.3%, while Saudi Basic Industries Corp 2010.SE retreated 1.2%.

Separately, Oman's state energy group OQ is in talks with new potential partners for its planned petrochemical complex in Duqm after SABIC withdrew, Chief Executive Ashraf Al Mamari said.

"The market is under pressure from a combination of weaker oil expectations and liquidity dynamics," Joseph Dahrieh, managing principal at brokerage firm Tickmill, said in a note.

"Lower oil feeds directly into fiscal repricing. Saudi Arabia's FY2026 budget projects a deficit of roughly 165 billion riyals, and investors have become more sensitive to any signs of prioritisation or pacing in Vision 2030 spending," he added.

The Qatari benchmark index .QSI snapped four consecutive sessions of gains to end 0.4% lower, with all its constituents in the red. Qatar National Bank QNBK.QA, the region's largest lender, slipped 0.8%, and Industries Qatar IQCD.QA fell 0.8%.

Outside the Gulf, Egypt’s blue-chip index .EGX30 edged up 0.1%, helped by a 15.3% advance in Raya Holding RAYA.CA and a 2.1% rise in Telecom Egypt ETEL.CA. The telecoms operator forecast on Wednesday high-single-digit revenue growth and an EBITDA margin in the low 40s in its 2026 guidance.