Gulf markets hammered by global sell-off and lower oil price | beyondbrics | FT.com

Back in 2008 in the lead up to the collapse of Lehman Brothers, there was much talk in the oil-rich Gulf - then enjoying an over-hyped petrodollar fuelled boom - of the region being able to decouple from the world’s travails and avoid the storm clouds of the global financial crisis.

How times have changed. As concerns about Europe’s sovereign debt crisis and the threat of a Korean conflict sent world markets tumbling, the Gulf’s bourses took their worst hammering for months.

Saudi Arabia, the Arab’s world largest economy and home to it biggest stock market, led the way, diving 6.8 per cent - its largest loss in 18 months. Dubai’s benchmark stock index declined 4.6 per cent, while Qatar’s market fell 4.2 per cent.