Vaccine Adds to ‘Excellent Recipe’ for Recovery in Middle East - Bloomberg

Vaccine Adds to ‘Excellent Recipe’ for Recovery in Middle East - Bloomberg

Stock markets in the United Arab Emirates and Saudi Arabia are poised to lead the region’s recovery from the impact of the pandemic and low oil prices as countries in the Middle East prepare for their vaccination roll-outs, analysts say.

The UAE and Bahrain have already registered China-backed Sinopharm Group Co Ltd.’s vaccine for use, and Egypt received its first shipment. Meanwhile, Saudi Arabia and Kuwait authorized the use of Pfizer Inc. and BioNTech SE’s product.

Investors are pinning their hopes on the recovery after the region’s stocks underperformed broader emerging markets in 2020. Saudi Arabia’s benchmark index has gained 3.2% this year, with the Dubai gauge losing 8.5%, Abu Dhabi up 1.1% and Bahrain down 7.3%. In comparison, the MSCI Emerging Markets Index has rallied 12%.