With growing concerns over the coronavirus pandemic, the upcoming US presidential elections, and declining oil prices, the majority of Middle Eastern equities are continuing to experience a persistent decline.
While the Tel Aviv Stock Exchange enjoyed a slight rise, the rest of the region’s stock markets remain in a slump. Kuwait’s Premier Market Index has suffered a 2.1% drop—the worst in the region—while Dubai endured a 1.6% decrease. Abu Dhabi, Cairo, Doha, and Muskat also continue to decline.
Luciano Jannelli, head of the investment strategy at Abu Dhabi Commercial Bank PJSC, explained that markets are still waiting for clarity amidst an array of growing macroeconomic concerns.
“There is a major risk of a contested election,” Jannelli said of the upcoming US election in an interview with Bloomberg Television.
While the US election and the COVID-19 pandemic remain to be major factors, the main driver for the widespread drop in stock prices is the dwindling value of Brent crude oil, which dropped by 19 cents to a value of $37.46 per barrel on Friday.
The Gulf Cooperation Council—an economic union of all Arab states of the Persian Gulf—suffered a steep economic decline this year, with a partial increase expected in 2021.
