GCC Market Review –September 2009 (PDF)

With the exception of Saudi Arabia, all GCC markets remained buoyant during August-09 on the back of surge in crude oil prices and positive indicators from world markets. Oman, Qatar and Kuwait in particular witnessed significant gains with these markets increasing by 8.5%, 7.0% and 6.4% respectively.

The investor’s sentiment continued to be positive from last month in line with better than expected corporate results announced for the first half ending in June 30, 2009. As per the UAE’s economy minister, the UAE economy has overcome the worst of the crisis and will see more growth by the end of the year. Economic activity will move gradually upwards in the fourth quarter of this year and the first quarter of 2010. Oil prices sustaining its levels too helped the market to continue to remain buoyant. Price of OPEC Basket crude consistently remained around US$70 a barrel to average US$71.35 a barrel for August, an increase of 10% over July average. Going forward, we expect the market to still be impacted by oil prices and movements in international markets. However, trading activity is expected to be low on account of the holy month of Ramadan and subsequent Eid holidays.