DUBAI: Stock markets in the Gulf ended lower on Sunday in response to Thursday's slide in oil prices as rising Covid-19 cases in Europe and the United States heightened concerns over the outlook for fuel consumption.
Brent crude dropped 19 cents to settle at $37.46 a barrel on Friday, after touching a five-month low of $36.64 in the previous session.
Lower oil prices and disruptions to crude exports are likely to impact the fiscal balances of countries reliant on oil income.
Dubai's main share index declined 1.6%, dragged down by a 3% fall in blue-chip developer Emaar Properties and a 1.7% decrease in Emirates NBD Bank.
The six-member Gulf Cooperation Council faces a steep economic contraction this year before partially rebounding in 2021, with most countries facing sharper drops than previously estimated, a quarterly Reuters poll showed.
The United Arab Emirates, which has seen a surge in new Covid-19 cases, is expected to see GDP decline 6.0% this year, grow 2.7% next year and expand 3.8% in 2022. In July, analysts expected a 5.1% decline in 2020 and 2.6% growth in 2021.
The Abu Dhabi index closed down 0.6%, with Aldar Properties shedding 3.3%, while the United Arab Emirates' largest lender First Abu Dhabi Bank was down 0.5%.
Saudi Arabia's benchmark index fell 0.5%, hurt by a 1.3% fall in petrochemical firm Saudi Basic Industries and a 1.2% decline in the kingdom's largest lender National Commercial Bank.
In Qatar, the index slipped 0.5%, with United Development sliding 4.8% and Ezdan Holding tumbling 8%.
Outside the Gulf, Egypt's blue-chip index eased 0.6%, with most stocks in negative territory including El Sewedy Electric, which was down 2.6%.—Reuters
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