Is a regional bull market on the way in the Gulf?
The S&P GCC Composite is up 9 per cent year to date. The regional index bounced back to where it was at the beginning of 2011, at levels last observed before the advent of the Arab spring. The index, which has lost 60 per cent of its value since the peak of 2008, has been evolving in a narrow range for the last three years.
However, we have witnessed some interesting developments in the past two months. The Saudi stock market, the largest in the region, has reached levels not seen since 2008. Dubai, perceived as the regional bellwether by foreign investors, is up 25 per cent year to date. And contrary to the previous market rallies we have seen in past years, this movement is happening with considerable volumes.
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