Direct Exclusive - Abu Dhabi: Financial analysts have identified a group of sectors whose shares are traded in global and Arab financial markets, and which are likely to be the focus of investors’ attention and interest during the holy month of Ramadan and until the end of the first quarter of 2025, especially in light of the continued decline in global geopolitical events with the trend towards ending the war in the Middle East with the arrival of US President Donald Trump and the quest to approve Egypt’s plan to rebuild the Palestinian Gaza Strip, in which many listed companies will participate.

They pointed out that this will also come with the Federal Reserve's intention to seek to reduce interest rates and continue to disclose annual business results, which show the strong conditions of major companies in light of the control of the inflation index in some major countries.

With the approach of the month of Ramadan in 2025, the Kuwait Stock Exchange has strengthened its lead in the list of Arab increases since the beginning of the year 2024 until the end of the session on Tuesday, February 20, after its index for the first market rose by 11.13%, followed by the Dubai Stock Exchange by 4.2%, followed by the Egyptian Stock Exchange, whose thirty-digit index rose by 3.9% with the increase in risk appetite among investors in emerging markets.

The Abu Dhabi Securities Exchange index jumped by 2.15%, the main index of the Saudi market "TASI" rose during that period by 2.73%, and the Abu Dhabi Securities Exchange index increased by 2.15%.

While the Bahrain Stock Exchange index fell by 2.3%, and the Muscat Securities Market index fell by 2.9%.

Five sectors

In this regard, the economic advisor, Ibrahim Al-Fulaijawi, said that the promising sectors that are expected to move positively in the coming period, especially in the month of Ramadan in 2025, are the food sector and the consumer sector, in addition to the banking and real estate sectors, especially in conjunction with the exit of the efforts of some countries in the region to approve a clear plan for the reconstruction of the Gaza Strip in Palestine, presented by Egypt, in which many major companies listed on the financial markets in the Middle East region are likely to participate.

He pointed out that one of the promising sectors that will move in line with this plan is the non-banking financial services sector, noting that the region's markets are currently going through a period of upward momentum supported by plans to completely end the war in the Gaza Strip and Ukraine. He expected that there would be a technical correction period in the region's financial markets by the end of the first quarter of this year, especially with the end of the Eid holiday and exams.

He pointed out that the most prominent sectors that will benefit the most from the Federal Reserve's efforts to reduce interest rates in the coming period and during the first half of this year are small companies, as they often carry high debt ratios. Therefore, any reduction in interest rates contributes to reducing borrowing costs and gives them the opportunity to inject additional capital, which leads to an increase in the indicators associated with these companies.

He explained that these sectors include sectors related to the consumer, as any link to interest gives the consumer additional purchasing power, noting that real estate and construction companies are added to this, as the decrease in interest encourages the purchase of homes and increases investments in this sector, which gives real estate companies a strong boost.

Business results

In turn, Ihab Rashad, Vice Chairman of Mubasher Capital Holding for Financial Investments, said that the emergence of the annual private business results during February 2025 will be the main motivation for investors to move towards companies that are expected to achieve good results.

He stressed that most of the stocks listed in sectors such as banking, financial services, retail trade and real estate are among the most prominent economic sectors that can achieve growth, especially with the advent of the holy month of Ramadan, coinciding with the continued trend towards lowering interest rates and the decline in the pace of geopolitical events in the Middle East and globally.

Defensive stocks

Dubai-based financial expert and economic analyst, Wadah Al-Taha, said, “During the beginning of this year, investors’ attention will continue to be directed towards defensive stocks listed in sectors such as energy, food, electricity, water, and others, in light of the stability of geopolitical conditions globally and regionally, and the Federal Reserve’s confirmation of reducing interest rates, with the increase in inflation rates leading to investors resorting to it. He pointed out that speculators tend during this period towards stocks that are characterised by high liquidity rates and significant fluctuations.”

Promising sectors

For her part, Duaa Zidane, Head of Investment Sector at Tycoon Securities, expected that there are promising sectors led by the real estate, communications, construction, food and pharmaceutical sectors, in addition to companies specialized in technology and electronic payment, which are expected to make positive moves and attract liquidity with the beginning of the holy month of Ramadan until the end of the first half of the new year, to coincide with the successive announcements of the approval of the general assemblies of the listed companies on the annual distribution plans and their disclosure of business results and the continuation of the implementation of the government offerings program .