Bourse rides wave of Saudi recovery

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Saudi Arabia’s stock market, the largest in the Middle East, has recovered more swiftly than most of its peers this year, justifying its position as the first choice in the region of almost every analyst and fund manager.

MSCI Barra’s Saudi index is up 8.8 per cent so far this year, trailing only Kuwait, and has gained 63.5 per cent over the past 12 months, almost 10 percentage points better than Qatar, the second-best bourse during that period.

Higher oil prices help. Saudi Arabia is the world’s largest exporter of crude, which currently costs about $80 a barrel, boosting the economy and government finances.