Most Gulf markets rise in early trade; Dubai stocks ease

Most major markets in the Gulf traded higher early on Wednesday, with Saudi Basic Industries Corp (SABIC) supporting the Saudi index.

The kingdom's benchmark index rose 0.4pc, with SABIC, the world's 4th-biggest petrochemicals firm, advancing 1.2pc, after it proposed a second-half dividend of 1.5 riyal per share.

Meanwhile, Saudi Arabia announced a 990 billion riyal ($263.91 billion) budget for 2021 on Tuesday, around 7pc less than estimated spending for this year, as the world's biggest oil exporter seeks to tame a huge deficit caused by lower petroleum revenue and the coronavirus crisis.

The kingdom expects the economy to shrink by 3.7pc this year but to swing back to 3.2pc growth next year.

Dubai's main share index, however, eased 0.1pc, hit by a 0.9pc fall in blue-chip developer Emaar Properties and a 1.6pc retreat in logistic firm Aramex.

Dubai's non-oil private sector shrank for a second consecutive month in November as the pandemic drove business sentiment to a historic low, a survey showed on Monday.

The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) declined to 49.0 in November from 49.9 in October.

The Abu Dhabi index added 0.2pc, bolstered mainly by a 0.6pc gain in telecoms firm Etisalat and a 0.3pc increase in the country's largest lender First Abu Dhabi Bank .

In Qatar, the index edged up 0.2pc, led by a 1pc rise in the Gulf's biggest lender Qatar National Bank.