Major Gulf markets subdued on soft oil prices

Major stock markets in the Gulf were subdued in early trade on Thursday, weighed down by soft oil prices with trading volumes thin in the absence of foreign investors during the Christmas holidays.

Oil, a driver for the Gulf’s financial markets, settled marginally lower on Wednesday and prices were on course for their steepest annual decline since 2020 as investors weighed U.S. economic growth and assessed the risk of supply disruptions from Venezuela and Russia.

Lower crude prices and disruptions to oil exports affect the fiscal balances of oil-dependent countries.

Saudi Arabia’s benchmark index edged 0.1% higher, helped by a 1.4% rise in ACWA Power Company.

Elsewhere, shares in oil behemoth Saudi Aramco was flat.

Dubai’s main share index eased 0.2%, dragged down by a 0.7% fall in blue-chip developer Emaar Properties.

In Abu Dhabi, the index slipped 0.1%.

The Qatari benchmark gauge was down 0.3%, with Qatar Islamic Bank falling 0.5%.