Executive Summary
The S&P GCC index declined by 1.5% in 2025. All GCC equity market indices, except Saudi Arabia, registered broad-based gains in 2025 led by Oman (+28.2%), Kuwait (+21.0%) and Dubai (+17.2%). Saudi Arabia delivered its worst performance in nearly ten years at -12.8% in 2025. Qatar delivered modest gains of 1.8% in 2025. Qatar’s sector concentration is titled in favor of financials, especially banks, as QatarEnergy, which operates all of Qatar’s oil and gas activities, is fully owned by the State of Qatar and not listed on the exchange. While QNB and QIB delivered strong performance of 7.9% and 12.1% respectively, Commercial Bank and AlRayan Bank were down 3.4% and 10.9% in 2025. As we step into 2026, this report presents our outlook for Qatar Exchange General Index using a three-factor framework encompassing economic fundamentals, earnings growth potential and valuation attractiveness. A strong real GDP growth expectation of 6.1% in 2026, twin surpluses in the current account and fiscal position and massive LNG production expansion support a positive economic outlook for Qatar in 2026. Driven by strengthening domestic demand, corporate earnings are forecasted to grow by 8.3% in 2026 which is an improvement over the recent years. Recent market corrections have resulted in lower P/E ratios and high dividend yields, which makes the Qatar Equity market attractive in terms of valuation. Overall, our outlook for Qatar Exchange General Index for 2026 is positive.
