January 3, 2026

A global markets overview highlights strong investor sentiment at the start of 2026, driven by 2025 performance, but also warns of risks — including geopolitical tensions, U.S. economic policy shifts, and potential supply gluts in commodities. This broader backdrop influences Middle East trade and finance outlooks. Source : Reuters.

Oil markets steadied on the first trading day of 2026 after record annual losses in 2025, as investors balanced oversupply concerns with geopolitical risks such as Middle East tensions and global conflicts. Brent and WTI both posted stabilisation after a challenging end to last year. Source : Reuters.

After a slump in 2025 where IPO proceeds hit their lowest since 2020, analysts say Middle East capital markets are positioned for a recovery in 2026. The UAE could see 9–12 listings, while Saudi Arabia is reviewing around 40 potential IPOs. Improved governance and investor interest are expected to support renewed activity. Source : The

Widespread protests against Iran’s deepening economic crisis escalated on January 1, with multiple fatalities reported as clashes intensified. The unrest — sparked by a plunging currency and rising prices — represents the most significant domestic challenge in years. Authorities have promised dialogue even as security forces crack down. Source : Reuters.

Saudi Arabia’s benchmark index (TASI) kicked off the new year with a 0.6% gain, driven by broad-based buying in consumer staples, tech and utilities. The market was also supported by a $13 billion syndicated loan arranged to fund infrastructure projects. Oman’s index saw moderate gains, with OQ Exploration & Production and Oman Telecommunications leading. Source