Abu Dhabi, Saudi lead 2021 Gulf bourse rebound | ZAWYA MENA Edition
Gulf stock markets surged to milestone highs in late 2021, but some of these gains ebbed somewhat as oil prices lowered from a three-year peak and fears over a more virulent COVID strain convinced traders to book profits.
Nevertheless, this year represents a remarkable turnaround for regional bourses. The oil price surge delivered higher-than-expected revenue for Gulf governments, giving them more financial firepower to enact post-COVID economic recovery and reform plans, said Ali El Adou, Head of Asset Management at Daman Investments, Dubai.
Positive sentiment over high vaccination rates and effective governmental responses to the pandemic, especially in the United Arab Emirates, bolstered investor confidence and helped fuel the 2021 Gulf market rebound.
“Abu Dhabi and Saudi have been the top performers this year, driven by government consolidation of businesses to create bigger companies that serve their long-term interests,” said Mohammed Ali Yasin, Chief Strategy Officer at Al Dhabi Capital, Abu Dhabi.
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