Markets across the Gulf region have diverged sharply since the Middle East conflict began, as investors traverse big swings in energy prices and markets remain rattled by geopolitical turmoil.
Saudi Arabia and Oman have both outflanked other regional indices, with Oman’s index surging 9.3% since March 1, the day after the war began on Feb. 28, while the Saudi Tadawul has advanced 5.8%. In contrast, Dubai’s DFM General Index has plunged nearly 16% over the same period, with Qatar sliding 4% and Bahrain’s BAX falling 7.2%.
Saudi’s index, which is closely correlated to energy markets, has been turbo-charged by the spike in oil prices, while Oman has benefitted from investors seeking safe havens, according to Damanick Dantes, founder of Dantes Outlook.
In contrast, the United Arab Emirates, which Dantes said is more sensitive to real-estate markets and broader geopolitical events, has been hit hardest.
Speaking with CNBC’s “Access Middle East” on Thursday, Dantes said the elevated oil price remains a net positive for Saudi Arabia, where a small handful of large energy companies dominate the market.
