Picture used for illustrative purpose. File
Gulf stock markets fell on Sunday after Democrat Joe Biden won the election.
Saudi Arabia’s stock index slumped 0.2% at market opening but gained in early trading and climbed up 0.3% at 07:25 GMT. Markets In other parts of the region were mixed.
The decline mirrored the expectation that the new administration will not bring radical changes to the region’s economy.
Analysts call on the importance of reforms, stating that the expectation of moderate oil prices and a weak US dollar under the new administration could pressurize the Gulf governments budget deficits.
Biden’s polices may not bode well for Gulf countries that are working on diversifying their economies and are currently dealing with a strained economy due to coronavirus and lower crude revenues.
Rachel Ziemba, adjunct senior fellow at the Center for a New American Security said, structural challenges faced by Gulf Cooperation Council economies including the energy transition are likely to be amplified.
Robert Mogielnicki, resident scholar at Washington-based Arab Gulf States Institute had a counter opinion. He said a Biden presidency is not going to make or break Gulf economies.
"The most consequential decisions for the overall health and sustainability of Gulf economies will be smart spending and implementing economic reforms within the region.
Robust earnings from Google-owner Alphabet and Twitter took the S&P 500 and Nasdaq indexes close to record levels on Friday, with data showing the domestic economy slowed lesser than expected in the second quarter providing support.
For the first time since the Great Recession a decade ago, the US Federal Reserve is poised to cut interest rates, shoring up America’s defenses as the global economy weakens.
Japan’s economic growth unexpectedly accelerated in January-March, driven by net contributions from exports and defying forecasts for a contraction in the world’s third-largest economy. However, the surprise expansion was mostly caused by imports declining faster than exports, likely reflecting weak domestic demand,
Global stock markets mainly dropped on Friday, with investors focused firmly on the outlook for interest rate hikes as central banks battle to bring down sky-high inflation.
A new trade exhibition will debut in Riyadh this September to unlock opportunities in Saudi Arabia’s US$300 billion infrastructure projects plan.
The real estate market in Dubai is robust thanks to the economic recovery in the UAE. The economic growth would continue considering the leadership’s