Share price indices from Dubai to Riyadh advanced on Sunday amid a recent stabilization of the price of oil and after recent hawkish comments by officials from some OPEC member states.
The Dubai Financial Market General Index posted the biggest jump among the Gulf markets, closing 4.92 percent higher at 2,977. 77 points.
Market bellwether Emaar Properties, the developer of the world' s tallest mixed use-tower, the 829.9 meter tall Burj Khalifa, gained 4.50 percent to hit 5.11 dirham (1.39 dollars) on heavy trading. Investment bank Shuaa Capital which suffered heavy losses throughout January, added 3.24 percent.
With Sunday's index advance, the Dubai bourse recovered further ground after the gauge hit a 27-month low at 2,621 on January 21. Earlier last Wednesday, Mohammad Bin Saleh Al-Sada said the current price of oil was "unsustainable". The minister claimed that 380 billion dollars of investment in the oil and gas sector has already been deferred as a result, Dubai-based Pipeline magazine reported.
United Arab Emirates Minister of Energy Suhail Al-Mazrouei also said on January 12, he is convinced the value of the "black gold" will recover as market forces will correct the slump probably after the first half of 2016. On Friday the price of oil (U.S. crude) closed. 1.4 percent higher at 33.57 dollar per barrel (159 liter).
Regional markets already benefitted last week "from the improving sentiment especially after the oil price spike triggered by talks (later denied) between Saudi Arabia and Russia to cut output," said Dubai-based economist Dr. Nasser Saidi in his weekly market analysis published earlier today.
In Riyadh, the Saudi Arabian Tadawul All-Share Index advanced 1. 98 percent to reach 5,996.57 points. The biggest exchange in the region recorded 144 advancing shares, while only 20 declined in value. Market heavyweight and petrochemical giant Sabic surged 2.75 percent, closing at 70.39 Saudi riyal (18.77 dollars). Sabic shareholders witnessed a roller coaster start into 2016 as their stock fluctuated between 76.50 Saudi riyal (20.40 dollar) and 60.88 Saudi royal (16.21 dollars).
The Doha-based Qatar Exchange 20 Index added 2.26 percent, while Kuwait's KSE Market Index finished two percent higher. Dr. Nasser said crude oil exports from Kuwait to China hit a record high 1.75 million tons in December, up 1.4 percent year on year and equivalent to around 414,000 barrels per day.
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