Most Arabian Gulf stock markets rebounded on Wednesday as global equities regained lost territory and investors focused on the strong fundamentals of the region’s economies, analysts said.
The market sell-off that rattled investors globally because of a pick up in inflation and fears the US central bank may accelerate interest rate hikes which unsettled the bond market, seemed to ebb on Wednesday. The UK’s FTSE 100 rose 1 per cent, the first advance in more than a week and the biggest increase in seven months, while the MSCI Emerging Market Index climbed 0.1 percent, the first gain in a week.
In the Gulf region, the exchange in Abu Dhabi rose 1.21 per cent and Dubai climbed 0.83 per cent. Meanwhile, Saudi Arabia's Tadawul gauge, the region's largest, fell 0.66 per cent while Oman sank 0.81 per cent.
“There is no protection from global contagion but large parts of MENA have positive fundamental tailwinds, such as reform and a return to growth in the likes of Egypt and Saudi and, for the broader region, the benefit of higher oil price,” said Hasnain Malik, head of equity research at frontier countries-focused Exotix Capital.
Saudi Arabia, the biggest Arab economy, is implementing an economic overhaul to diversify its income away from oil, while Egypt is undertaking steps to fix its economy after securing a $12 billion aid package from the IMF.
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Read more:
Arab stocks largely escape global market turmoil
Equity markets in Asia regain some ground
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Prior to the start of the global equity rout last week, Arabian Gulf markets have been rebounding this year, driven by a pick-up in oil prices and economic recovery.
Valuations in the region also are lower than in other markets, giving a boost to local equities, which are unlikely to suffer from a crash similar to the 2008 one, analysts said.
"Overall valuations are lower than emerging markets due to the overriding geopolitical and country specific risks despite the decent earnings growth and elevated dividend yields; thus resulting in overall resilience today when compared to the health of companies and overall heightened valuations in 2008," said Rayan Salam, chief executive officer of Ithmar Capital Partners.
The economic reforms and relatively high oil prices of around $70 a barrel, compared with the troughs of less than $30 a barrel at the start of 2016, have helped buoy markets, especially since a number of companies reported positive fourth quarter results.
“For the first time in three years, corporate earnings turned from negative to positive and we continue to see positive earning upgrades across regional companies,” said Salah Shamma, head of Investment at MENA equity unit at Franklin Templeton Investments.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
How it works
Booklava works on a subscription model. On signing up you receive a free book as part of a 30-day-trial period, after which you pay US$9.99 (Dh36.70) per month to gain access to a library of books and discounts of up to 30 per cent on selected titles. You can cancel your subscription at any time. For more details go to www.booklava.com
The Lost Letters of William Woolf
Helen Cullen, Graydon House
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
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BRIEF SCORES
England 228-7, 50 overs
N Sciver 51; J Goswami 3-23
India 219, 48.4 overs
P Raut 86, H Kaur 51; A Shrubsole 6-46
England won by nine runs
Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
MEFCC information
Tickets range from Dh110 for an advance single-day pass to Dh300 for a weekend pass at the door. VIP tickets have sold out. Visit www.mefcc.com to purchase tickets in advance.
My Country: A Syrian Memoir
Kassem Eid, Bloomsbury
