Toward the end of 2017, a number of analysts had predicted impressive things to come for equity markets in the United Arab Emirates. With a handful confidently projecting that double-digit growth would be easily achievable through 2018, many watched with interest to see what the beginning of the year would bring.
A week in, a reporter from the Khaleej Times got in touch with one of those experts to see if any kind of reassessment was in order. Instead, the Al Masah Capital Management analyst reaffirmed that conditions were ripe for a strong year of appreciation to come.
Several Factors Combine to Set the Scene for a Positive Year in the United Arab Emirates
Most members of the Gulf Cooperation Council (GCC) had by then been suffering for years from depressed petroleum pricing. While these nations were almost to a one working to diversify their economies and lessen this longtime dependence, there can be no denying that plenty of progress was still to be made.
It was therefore with relief that both the UAE and other GCC members saw oil prices on world markets climbing a bit through the end of 2017. With this important development buoying their economies on its own, several other positive factors contributed to even more reason for optimism.
Likely the most significant of these was that growth remained generally strong more or less all around the world. While experts have predicted for years that stagnation in China would lead to even lower demand for oil, the effect has been less pronounced than many had supposed. With economic conditions worldwide remaining stronger than had previously been projected, investors were happy to send prices on UAE equity markets higher at the beginning of 2018.
Good Reasons to Believe That Conditions Will Remain Welcoming
A New Year’s surge on the stock markets is hardly anything surprising, in most cases. Although the widespread belief that the end of the year typically brings a sell-off is somewhat misguided, January is almost always a strong month relative to the current economic outlook. At the same time, recent activity on UAE equity markets can be credited at least partly to positive economic factors that are likely to prevail for some time to come.