Interpreting Middle East Economic News and Analyzing Market Trends

Dubai Financial Market Performance YTD … WOW!

The Dubai Financial Market (DFM) has been on fire since the beginning of this year, up 15% as of yesterday.  Its neighbor, the Abu Dhabi Exchange, is up 10% for the year.  Excellent earnings announcements coupled with a positive outlet for the rest of the year is re-energizing the markets.

Market YTD Return %
Kuwait 6.3%
Saudi Arabia 3.3%
Dubai 14.9%
Abu Dhabi 9.9%
Bahrain All Share 1.9%
Qatar 4.4%
Egypt – EGX30 5.2%
Jordan 4.4%
Lebanon* 2.4%
Morocco* -4.0%
Tunisia* 3.9%

* Traded from Monday to Friday. Returns as of market close on Feb. 4, 2013. Source: Global Investment House

It’s important to note, however, that markets in the Gulf lack the liquidity of larger emerging markets, with the exception of Kuwait and Saudi Arabia.  As such, money flowing in or out can result in huge sings up or down.  For now, investors and market watchers in the region are optimistic that the high-flying performance will the the theme for 2013.