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Arab financial markets recorded mixed performance during February 2026, in line with trends observed across advanced and emerging markets during the same period. The AMF Composite Index for Arab financial markets declined by 0.83 percent by the end of the month.

Nine Arab stock exchanges registered improved performance, supported by gains in the banking, financial services, energy, and basic materials sectors. These gains contributed to strengthening market capitalization in several markets, particularly those where these sectors hold significant weight.

The Muscat Stock Exchange led the region’s top-performing markets, recording growth of 16.79 percent, followed by the Tunis Stock Exchange with an increase of 5.72 percent. The stock exchanges of Egypt, Amman, Abu Dhabi, and Dubai also recorded gains ranging between 1.06 percent and 2.99 percent. Meanwhile, Iraq, Bahrain, and Kuwait posted more moderate increases.

Nine Arab stock exchanges recorded improved performance during the period, supported by gains in the banking, energy, insurance, financial services, and consumer retail sectors, contributing to an increase in market capitalization. The Egyptian Exchange led the rising markets with an increase of 14.24 percent, followed by the Saudi and Muscat exchanges at 8.50 percent and 7.90 percent, respectively. The markets of Tunisia, Dubai, and Qatar also recorded gains of 6.72 percent, 6.42 percent, and 5.09 percent, respectively, while the Abu Dhabi and Palestine exchanges rose by 2.89 percent and 1.68 percent, respectively. 

In contrast, five Arab stock exchanges recorded declines in their indices due to weaker performance in certain sectors, including travel and leisure, consumer services, and media. The Casablanca Stock Exchange declined by less than one percent, while the markets of Bahrain, Amman, Iraq, and Kuwait recorded declines ranging between 1.09 percent and 3.84 percent. 

Published annually, the report represents a model of Arab institutional cooperation, providing a comprehensive analysis of economic developments in Arab countries and presenting an integrated overview of the state of the Arab economy considering regional and global developments.

At the level of Arab stock exchanges, indices rose in ten markets, led by the Amman stock exchange with a gain of 19.07 percent, followed by Egypt and muscat with increases of 14.07 percent and 13.22 percent, respectively. Several other exchanges also posted varying gains. In contrast, six Arab exchanges recorded declines, most notably Saudi Arabia and Damascus.

The total market capitalization of Arab financial markets decreased by approximately USD 107 billion, or 2.48 percent, to reach USD 4,208.08 billion by the end of the fourth quarter, compared to USD 4,315.08 billion at the end of the previous quarter. Meanwhile, the value of trading increased to USD 261.42 billion, marking a rise of USD 9.19 billion.

Published annually, the report represents a model of Arab institutional cooperation, providing a comprehensive analysis of economic developments in Arab countries and presenting an integrated overview of the state of the Arab economy considering regional and global developments.

The report reviews economic developments across Arab countries during 2024, including the impact of global economic conditions on the region. It covers key sectors such as agriculture and industry, oil and energy, public finance, monetary and banking developments, financial markets, external and intra-Arab trade, balance of payments, external public debt, and exchange rates.

This year’s forum was held under the theme:
“A Decade of Fiscal Dialogue: Building Macroeconomic Resilience through Strengthening Fiscal Policies and Institutions.”

The forum witnessed broad participation from Arab Ministers of Finance and Governors of Central Banks, alongside senior officials and experts from regional and international financial institutions.

In his address during the forum, H.E. Dr. Fahad M. Alturki, Director General Chairman of the Board of the Arab Monetary Fund, stressed the importance of the forum as a platform to assess the outcomes of a full decade of dialogue on fiscal policies, and as an opportunity to strengthen cooperation among Arab countries in light of global financial and economic developments.

H.E. stated:

The study reviews the evolution of the contributions of productivity, capital, and labor to economic growth, based on an analytical framework that compares the performance of Arab countries with regional and international peers. This approach contributes to a deeper understanding of macroeconomic characteristics and dynamics.

The study’s findings highlight the importance of enhancing resource-use efficiency and improving structural factors that support productivity, thereby fostering more sustainable and resilient economic growth.

The study concludes that adopting balanced, data-driven economic policies is a key element in supporting productivity and strengthening growth pathways in Arab economies.

The full version of the study is available on the following link:
https://www.amf.org.ae/en/publications/economic-studies/productivity-and-growth-assessment-framework-pgaf-technical-note

The study highlights that Arab countries possess promising fundamentals for improving productivity, particularly in terms of capital accumulation and labor availability. The findings indicate that certain policies such as adherence to disciplined monetary policies and improvements in human development indicators have had a positive impact on productivity, opening the way for more sustainable growth.

On the other hand, the study points out that rising government expenditure and public debt pose challenges to productivity enhancement, underscoring the need to develop effective fiscal frameworks that ensure more efficient use of resources.

The study concludes by emphasizing the importance of adopting economic policies that focus on macroeconomic stability and improving the efficiency of public spending as a fundamental step toward boosting productivity and enhancing the competitiveness of Arab economies.

The AMF Composite Index rose by 1.20% during October, driven by gains in eleven exchanges versus declines in three others. Amman led with an increase of 9.39%, followed by Muscat at 8.27%, while Bahrain, Palestine, Egypt, and Dubai recorded gains between 5.89% and 3.76%. In contrast, Iraq and Damascus posted the largest declines.

Globally, advanced markets ended the month on a positive note, with the Nikkei, Nasdaq, FTSE, and Morgan Stanley indices rising between 3.65% and 16.64%. MSCI Emerging Markets indices also recorded gains across Asia, the Arab region, Europe, and Latin America.

This improvement came alongside the U.S. Federal Reserve’s second interest rate cut of 2025, followed by similar moves in several Arab countries, supporting liquidity and investor confidence. Easing signals in U.S.–China trade discussions further strengthened sentiment across global and regional markets.

The meeting discusses several key topics, including emerging risks and trends in Arab financial systems, financial stability policies and support for economic growth, enhancements to supervisory processes, as well as the regulation and oversight of stablecoins, the role of artificial intelligence, and liquidity risk management.

H.E. Dr. Fahad M. Alturki, Director General Chairman of the Board of the Arab Monetary Fund, emphasized the importance of this annual platform, which brings together policymakers and senior officials to follow the latest supervisory developments. He noted that the issues raised this year reflect the rapid shifts taking place in the global financial landscape, underscoring the need to strengthen supervisory frameworks and enhance the capacities of Arab countries to ensure financial stability. He also reiterated that the Fund’s new strategic direction reinforces its role as a thought leader and strategic partner for its member countries.