GCC equity markets delivered modest returns in 2024, underperforming global indices amid a backdrop of regional geopolitical tensions and persistent global headwinds, shows a report by Kuwait-based Kamco Invest.
The MSCI GCC Index registered a marginal gain of 0.7 per cent, trailing significantly behind key global markets.
The region faced several challenges, including the conflict in Gaza and Lebanon, the change in power in Syria, and attacks in the Red Sea, impacting investor sentiment and regional trade flows.
Dubai emerged as the top performer with a 27.1 per cent gain, followed by Kuwait (8pc) and Oman (1.4pc). Saudi Arabia and Bahrain registered modest gains of 0.6pc and 0.7pc, respectively. Qatar and Abu Dhabi witnessed declines of 2.4pc and 1.7pc, respectively.
Sectoral performance was mixed. Real Estate led gains with a 35.9pc surge, driven by strong performance from Emaar Properties. Utilities and insurance also delivered robust returns. Conversely, food and drug retailing (-9.4pc), materials (-9.3pc), and healthcare (-4.2pc) were the top decliners.
Elevated inflation globally led to tighter monetary policies and increased interest rates, impacting investor risk appetite and dampening economic growth.
The ongoing war in Ukraine and its geopolitical ramifications continued to weigh on global markets.
Sluggish growth in the Eurozone and China posed challenges to global economic recovery.
Despite the challenges, foreign investors remained net buyers of GCC stocks, a positive signal for the region.
The region maintains a robust project pipeline valued at $3.5 trillion, offering long-term growth prospects.
GCC markets lagged behind global indices, reflecting the impact of regional challenges and global headwinds.
The outlook for GCC markets remains uncertain, with ongoing geopolitical risks and global economic headwinds presenting challenges. However, the region’s strong economic fundamentals, robust infrastructure development, and growing investor interest provide a foundation for future growth.
avinash@gdnmedia.bh
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