What goes up must always come down. That's certainly true for the GCC markets, which highlighted a decline on Thursday. The slump was led by the Saudi markets and its flagship bourse, Tadawul. Which finished 1.3% lower and whose pain was compounded by a 2.1% fall in oil behemoth Saudi Aramco and the nation's biggest Islamic lender Al Rajhi Bank (1.2%).
Crude, which is a key benchmark for the GCC's financial markets, tumbled by 3% amidst the backdrop of a crucial OPEC+ meeting. It comes after the Saudis have said that they are prepared to increase production and fill the void, especially as Russia's output continues to fall substantially due to ongoing Western sanctions.
Meanwhile, In Abu Dhabi, equities slipped 0.5%, with the United Arab Emirates' largest lender First Abu Dhabi Bank, losing 1.3%. Rival emirate Dubai saw its main share index lose 0.3%, weighed down by a 1.3% decrease in Sharia-compliant lender Dubai Islamic Bank and a 1.6% drop in Dubai Electricity and Water Authority. To round off the disappointing day for the Gulf. The Qatari index eased 0.3%, with Qatar Islamic Bank concluding 2.6% lower.
Why it matters
The Gulf markets seemed bulletproof amidst all the chaos around them, with record-breaking IPOs and acquisitions. However, growing concerns over inflation and recession have begun to creep in, as seen by UAE's steady increase in fuel at the pump. Fuel prices subsequently slumped after Saudi said it would pick up the slack if sanctions on Russia continue.
