Major stock markets in the Gulf rose in early trade on Thursday, tracking gains in oil prices after OPEC+ agreed to further tighten global crude supply.
Crude prices, a key catalyst for the Gulf’s financial markets, stabilised near three-week highs following OPEC+’s agreement to further tighten global crude supply with a deal to slash production by about 2 million barrels per day, the largest reduction since 2020.
The agreement between the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, comes ahead of a European Union embargo on Russian oil and would squeeze supplies in an already tight market, adding to inflation. Saudi Arabia’s benchmark stock index firmed 0.1%, helped by a 4% jump in Sahara International Petrochemical Co.
The kingdom’s Public Investment Fund was set to raise $3 billion on Wednesday in its first foray into the debt capital markets, taking advantage of a brief period of calm to become the first sovereign wealth fund to issue green bonds.
Gulf equities extend gains, Qatar posts best day in 4 years
Dubai’s main share index added 0.4%, with Emirates NBD Bank gaining 2%, while budget airliner Air Arabia climbed 1.5%.
In Abu Dhabi, the benchmark stock index rose 0.3%, led by a 0.7% increase in the country’s biggest lender First Abu Dhabi Bank.
Separately, United Arab Emirates hospital group NMC Healthcare (NMCH) was granted an injunction from an Abu Dhabi court on Wednesday to prevent one of its creditors from taking legal action against it in another jurisdiction.
NMCH was forced into administration in 2020 after the disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses.
The Qatari stock index was up 0.7%. QatarEnergy CEO and state minister for energy Saad al-Kaabi said on Wednesday that his company will become the world’s largest trader of liquefied natural gas (LNG) over the next 5-10 years, a position that is currently held by Shell.
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