Feb 5 (Reuters) - Major stock markets in the Gulf were subdued in early trade on Wednesday, reacting to U.S. President Donald Trump's stunning statement about taking control of the war-ravaged Gaza Strip and revamping its economy once Palestinians are relocated elsewhere.
The announcement followed Trump's shock proposal for the permanent resettlement of the more than two million Palestinians from Gaza to neighboring countries, calling the enclave - where the first phase of a fragile Israel-Hamas ceasefire and hostage release deal is in effect - a "demolition site."
Saudi Arabia's benchmark index eased 0.1% in choppy trade, with SABIC Agri-Nutrients Company losing 2.6%.
The kingdom rejects any attempts to displace the Palestinians from their land and would not establish ties with Israel without the creation of a Palestinian state, Saudi Arabia's foreign ministry said.
The United States had led months of diplomacy to get Saudi Arabia, one of the most powerful and influential Arab states, to normalise ties with Israel and recognise the country.
Dubai's main share index lost 0.2%, hit by a 1.1% fall in blue-chip developer Emaar Properties.
In Abu Dhabi, the index fell 0.1%, with the country's biggest lender First Abu Dhabi Bank ahead of its earnings announcement.
The United Arab Emirates' foreign trade touched 3 trillion dirhams ($817 billion) for the first time by the end of 2024, Prime Minister and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said in a post on X on Wednesday.
Meanwhile, the UAE's non-oil private sector continued to expand robustly at the start of 2025, although capacity pressures and competitive challenges posed headwinds, a survey showed on Wednesday.
The Qatari benchmark lost 0.3%, with the Gulf's biggest lender Qatar National Bank dropping 0.5%.
Reporting by Ateeq Shariff in Bengaluru; Editing by Toby Chopra
Source: Reuters