The markets of Kuwait, Qatar, Oman, and Bahrain opened today’s trading session with sharp declines exceeding five percent in the Saudi, Kuwaiti, and Qatari markets. The general market index dropped by 5.16 percent, or approximately 412.84 points, to reach 7,587.89 points. The Premier Market index fell by 5.69 percent, or around 488.79 points, settling at 8,106 points. Meanwhile, the Main Market index declined by 2.67 percent, or 192.66 points, to 7,013.23 points.

Global financial markets experienced a sharp decline over the course of two days following US President Donald Trump’s imposition of tariffs on most of the United States’ trading partners. These actions reignited fears of a potential global recession. The S&P 500 index dropped ten percent on Thursday and Friday, erasing more than $5 trillion in market value. The total decline for the index reached 17.4 percent from its all-time high on February 19, 2025, marking one of the steepest two-day declines in seven decades. Meanwhile, Kuwaiti economists attributed the sharp decline in the performance of Boursa Kuwait to the negative repercussions of U.S. President Donald Trump’s decision to impose tariffs on imports from various countries, including Kuwait. In separate interviews with the Kuwait News Agency (KUNA) on Sunday, experts highlighted the huge drop in stock market indices, driven by growing uncertainty in the investment arena.

Investors are highly fearful because the decision was sudden and unexpected, and such surprises often trigger market declines. Ramadan said, “It is still unclear what the consequences or actions from investors will be”. He believes that while there may be direct negative consequences in the short term, many issues can be dealt with in the medium term. Ramadan said, “Markets are facing losses, especially due to the absence of positive indicators. As a result, we may see further declines or fluctuations until the situation becomes clearer to investors.” Meanwhile, Head of the Investment Funds and Portfolios Department at National Investments Company Mohammad Al-Hamad indicated that most financial markets experienced turbulence following the tariff decision, which caused widespread panic. He explained that, while a ten percent tariff on Kuwait may not directly affect companies with substantial dealings in the U.S. markets, the psychological impact on the market has been significant, as it triggered panic. The first quarter’s performance had been positive and exceptional for several reasons, including developments surrounding mortgage issues, public debt, Gulf Bank’s acquisition, mergers, and more. These developments have had a direct effect on investor sentiment. Trump’s presidency has been marked by “high volatility.”

However, Al-Hamad believes that if the situation stabilizes in the second quarter, particularly with the upcoming annual general meetings of companies, the market may experience greater stability and more positive developments. Furthermore, a board member at Surooh Holding Company Sulaiman Al-Waqyan told KUNA that President Trump’s message was that it is an “economic war” between major countries, which has had a negative impact on global stock markets, including the U.S. stock market, which is expected to drop by 25 to 30 percent. Al-Waqyan said the Kuwaiti stock market will be moderately affected once the psychological shock from the significant declines in the general indices has been absorbed. He indicated that most of the listed Kuwaiti companies are domestically focused, meaning the market will eventually return to normal. Al-Waqyan expects the market to gradually regain its technical path once the negative effects of the downturn are absorbed. This will depend on any positive developments related to the tariff issue concerning Kuwait.

In addition, Head of Development at Rasameel Investment Company Hamad Al-Musaad told KUNA that the move was harsher than expected by the markets, as it led to a sharp decline in U.S. futures contracts by nearly two percent immediately after the announcement and by nearly three percent the following morning. European markets also saw a decline of about two percent. Al-Musaad predicts that the tariffs will generate revenues between $500 billion to $600 billion, which could help reduce the U.S. budget deficit and potentially lead to tax cuts. He ruled out the possibility of an economic recession, as economic indicators show gradual improvement in both the U.S. and the European Union, with credit markets remaining stable. Therefore, despite short-term market fluctuations, the outlook remains positive. It is worth mentioning that last Wednesday, President Trump imposed tariffs on U.S. imports from all countries worldwide based on the principle of “reciprocity,” starting at a minimum rate of ten percent. This marks the most severe escalation in U.S. tariffs in two centuries. The 10% tariff on all U.S. imports took effect on Saturday, with higher tariffs set to be imposed next Wednesday