Dubai, Abu Dhabi end higher, log weekly gains on vaccine hopes

Dubai and Abu Dhabi markets ended higher on Thursday and delivered gains over the week, lifted by hopes a faster economic recovery with the development and rollout of COVID-19 vaccines.

Britain began vaccinations this week, while the United States could start as soon as this weekend. Canada said initial vaccine shots would be delivered soon.

Riding the optimism, oil prices, a key catalyst for Gulf markets, have risen consistently in the past six weeks, with the Brent crude moving above $49 a barrel.

Dubai's main share index gained 0.3pc, helped by a 1.5pc rise in Dubai Islamic Bank and a 3.3pc gain in Union Properties. The Dubai benchmark index registered a 5.3pc gain for the week.

In Abu Dhabi, the index closed 0.6pc higher, with the United Arab Emirates' largest lender First Abu Dhabi Bank rising 0.6pc and Abu Dhabi Commercial Bank gaining 1.8pc.

The index bounced back from a lose the previous week to close up almost 3pc this week.

Saudi Arabia's benchmark index eased 0.2pc, with Al-Rajhi Bank slipping 0.5pc. The index posted a 0.4pc weekly loss.

Health authorities in Saudi Arabia have registered the Pfizer-BioNTech COVID-19 vaccine for import and use in the country, state news agency SPA said on Thursday.

Elsewhere, the Qatari index fell 0.7pc, weighed down by a 2.4pc fall in petrochemical firm Industries Qatar.

Qatar set a 2021 budget of 194.7 billion riyals ($53.5 billion), a 7.5pc cut in spending from 2020 and forecast a deficit of 34.6 billion riyals next year on lower revenues.

Outside the Gulf, Egypt's blue-chip index lost 0.3pc. El Sewedy Electric Co eased 2.6pc, while real estate stock Heliopolis fell nearly 5pc.

Egypt's annual urban consumer price inflation in November quickened to 5.7pc from 4.5pc in October, official statistics agency CAPMAS said, driven by the price of food.