GCC Markets Show Resilience as Oil Prices Hover Below $70

Despite concerns that lower oil prices could hurt GCC stock markets, analysts suggest that the correlation between oil and markets like the UAE and Saudi Arabia has weakened in recent years. Arun Leslie John of Century Financial notes that while oil remains a key export, its impact on regional stock markets is less significant than it was five to six years ago.

LSEG data shows that UAE and Saudi stock exchanges are trading above July levels despite the drop in Brent crude from its July peak above $84 per barrel. Diversification efforts have reduced the GCC's reliance on oil, with the UAE's non-oil sector contributing 74.3% to the economy by the end of 2023, and Saudi Arabia's non-oil sector comprising 50% of its GDP.

Meanwhile, oil prices rose slightly to $72.31 per barrel, driven by supply disruptions in the US Gulf of Mexico caused by Hurricane Francine. Mohamed Hashad of Noor Capital expects global markets to react positively to upcoming interest rate cuts by the Bank of England and the US Federal Reserve.

Source : www.zawya.com