Off the wire
• British FTSE 100 drops 1.42 pct on Tuesday  • China playing key role in Paris climate negotiations: MEP  • Spanish stock market falls 2.04 pct, closes at 9,837 points  • UN Security Council urges security assistance to Libya, Sahel region in fight against terrorism  • Macedonian students to enjoy free public transport  • Uganda off Zambia for Africa Hockey Cup of Club Championship  • Feature: Syrian men prefers being homeless than living under IS rule  • OECD indicators show unchanged growth pace in most countries  • LME base metals mostly lower on Tuesday  • Lithuanian president calls for NATO's deterrence measures  
You are here: 　 Home

Gulf Arab stocks plummet over years-low oil prices

Xinhua, December 9, 2015 Adjust font size:

Share indexes in Gulf Arab states fell sharply on Tuesday as investors reacted to the further drop in oil prices and increased indications on Gulf Arab governments imposing taxes to mitigate expected fiscal deficits.

The Dubai financial market recorded the sharpest declined, closing three percent off at 3,010.64 points, a new low in 2015.

Three gaining shares were outnumbered by 33 stocks which declined in value. Among the biggest drops by market value were the shares of Emaar, the biggest developer in the Middle East by market value, which dived 3.41 percent.

The Doha-based Qatar Exchange 20 Index slashed likewise three percent, finishing at 10,096.51 points.

In Riyadh, the Saudi-Arabian Tadawul All-Share Index finished with a day loss of 2.45 percent at 6,991.44 points, trading near a three-year low.

On Monday, oil prices fell to a seven-year low at around 37 U.S. dollars per barrel before stabilizing earlier today, following the oil cartel OPEC's decision in Vienna on Friday to leave the daily supply quantity at 30 million barrels per day.

Some officials in Bahrain have started to think loudly about taxing on expatriates.

Jalal Kadhem, Bahrain's parliamentary vice-chairman of the financial and economic affairs committee, said Bahrain looks to slash spending and increase revenues against the backdrop of low oil prices, as Bahrain had planned this year's budget based on an oil price of 60 dollars per barrel.

According to the International Monetary Fund, the six Gulf Arab oil states are likely to transform their 600-billion-dollar fiscal surplus into a 700-billion-dollar deficit by 2019, as oil prices are not expect to rise higher than 60 dollars per barrel in the coming years.

Gulf monarchies are also mulling to introduce a value-added tax during the next years. Endit