Oil rules Gulf equities after blow to bourses

Gulf bourses suffered a blow to their esteem last week when MSCI Barra, the index compiler, said it would not be upgrading the United Arab Emirates, Kuwait and Qatar to emerging market status.

The decision leaves all six Gulf Co-operation Council states monitored by MCSI Barra – the others are Bahrain, Oman and Saudi Arabia – designated as frontier markets.

Though the MSCI statement had little direct effect on trading, analysts say the structural problems highlighted by it, including low trading volumes and curbs on foreign investment, continue to hamper the development of local markets.