Most major stock markets in the Gulf region saw gains in early trade on Tuesday, following the upward trajectory of oil prices. However, the Abu Dhabi index remained flat.
Oil prices have been a driving force behind the financial markets in the Gulf. They have been on the rise for four consecutive sessions, triggered by concerns about a supply deficit resulting from extended production cuts by Saudi Arabia and Russia, as well as weak shale output in the United States.
Saudi Arabia’s benchmark index, the Tadawul, gained 0.3% and was poised to end a two-session losing streak. This was supported by a 1.1% increase in petrochemical maker Saudi Basic Industries Corp and a 0.4% rise in Al Rajhi Bank. Saudi Arabian Energy Minister, Prince Abdulaziz bin Salman, defended the cuts to oil supply by OPEC+, stressing the need for limited regulation to curb market volatility. State-owned oil giant Saudi Aramco also saw a 0.3% increase.
In Dubai, the main share index, the DFMGI, rose by 0.3%. Emirates NBD, the largest lender in the UAE, experienced a 1.5% gain, while blue-chip developer Emaar Properties rose by 0.6%. Qatar’s index also performed well, with a 0.5% increase. Industries Qatar, a prominent petrochemical firm, saw a 1% rise.
However, the Abu Dhabi index remained flat at 9,821.
In other news, the kingdom of Saudi Arabia is in preliminary discussions with American electric automaker Tesla to potentially establish a manufacturing facility in Saudi Arabia, according to sources familiar with the matter.
Overall, the rise in oil prices has lifted the Gulf stock markets, providing a positive outlook for investors in the region.
– The Thomson Reuters Trust Principles