Interpreting Middle East Economic News and Analyzing Market Trends

Turmoil in the Middle East? Not all markets agree, Kuwait and UAE have had stellar performance so far

Syria is in the middle of a 2-year civil war with no end in sight, Egypt’s military threw out its first elected leader in decades last week, tensions in Iraq and Lebanon are escalating, Libya has been a mess since its revolution and mass-protests show no signs of stopping in Turkey, yet some GCC markets are hitting fresh multi-year highs…

 

Global MENA Performance 15-7-2013

* Traded from Monday to Friday Saudi Arabia trades Saturday to Wednesday, the other countries trade Sunday to Thrusday. Source: Global Investment House.  Data as of market close 14 July 2013.

 

The Dubai Financial Market (DFM) has been doing extremely well since the beginning of this year.  Year-to-date its up over 50%.  If this pace continues it will be a record year for the DFM.  Abu Dhabi has also been doing extremely well, up 42% year-to-date.  Kuwait’s KSE is up nearly 33% for the year.

 

With performance number like these one would think that only good news is coming out of the region.  This, however, should come as no surprise, other markets are doing very well this year, such as U.S. markets even though the data coming out isn’t that great.  This simply highlights the global stock market disconnect from reality.