Dubai stocks hit eight-year high

Major Gulf markets in black, tracking high oil prices

DUBAI:

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 output cut of 1 million barrels per day (bpd) 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’s main share index advanced 1.4% and was at its highest in nearly eight 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 in Saudi Airline Catering after it announced a contract with Red Sea Global Co valued at about 6.3 billion riyals ($1.68 billion).

Published in The Express Tribune, July 5^th, 2023.

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