FT.com / Financials - Gulf equities in need of momentum

Will the Gulf stock markets continue to underwhelm, or will investors see a more pronounced turnround this year?

The region’s markets overall continued to recover some of their financial crisis-induced losses last year, but they remain well below their peaks. Furthermore, trading volumes have withered as local investors largely continued to shy away. But some factors indicate that the future looks somewhat brighter.

Qatar, the fastest-growing economy in the region, unsurprisingly did well last year, with a 25 per cent gain. However, Saudi Arabia, the largest market in the Gulf, disappointed with only an 8 per cent rise, while Abu Dhabi, Bahrain and Dubai continued to drift downwards in 2010.