“The kingdom also affirms that if it is (targeted by) any action, it will respond with greater action.” Saudi Arabia has traditionally been one of Trump's closest foreign allies, the US president made a point of visiting the kingdom on his first overseas trip as president and has touted arms sales to Saudi Arabia.

The escalation in tension between the two allies, and growing calls for Saudi Arabia to explain what happened to the missing writer, have raised concerns whether the kingdom can attract foreign investors needed to overhaul its economy according to Bloomberg.

In Dubai, Emaar Properties and Dubai Islamic Bank are the biggest drag on the index, which closes at the lowest level since January 2016.

Still, Trump said the US would be “foolish” to cancel large arms deals with the Gulf state.

“It's cumulative – the Yemen war, the dispute with Qatar, the tensions with Canada and Germany, the arrests of women activists.

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