Major stock markets in the Gulf rose in early trade on Tuesday tracking oil prices higher, with the Dubai index trading at its highest since 2015.
Oil prices - a key catalyst for the Gulf’s financial markets - rose as markets weighed supply cuts for August by top exporters Saudi Arabia and Russia against the backdrop of an uncertain global economic outlook.
Saudi Arabia would extend its voluntary cut of 1 million barrels per day (bpd) from output to August, the kingdom’s state news agency reported. Russia will also reduce its oil exports by 500,000 bpd in August, Deputy Prime Minister Alexander Novak said.
Dubai leads Gulf markets higher; Abu Dhabi falls as oil slips
Dubai’s main share index advanced 1.4% and is at its highest in nearly 8 years, led by a 4.6% jump in top lender Emirates NBD, which is trading near a record high.
Saudi Arabia’s benchmark index gained 0.3%, led by a 9.8% surge Saudi Airline Catering after it announced a contract with Red Sea Global Co valued at about 6.3 billion riyals ($1.68 billion).
Separately, the United Arab Emirates (UAE) will set up a new federal ministry of investment to develop the Gulf state’s investment strategy both globally and domestically as it contends with growing economic competition from neighbours.
The ministry’s aims would include stimulating the investment environment in the UAE and to make its legislation and procedures more competitive to attract global investment, Sheikh Mohammed said.
In Abu Dhabi, the index was up 0.4%.
The Qatari index gained 0.9%, as most of the stocks on the index were in positive territory including the Gulf’s biggest lender Qatar National Bank.
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