Dubai stocks sink again, wiping out 2022 gains

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• Saudi stock market extended losses for a third session on Tuesday
• Saudi, UAE announced boosting state spending on social welfare
• Dubai index hit its lowest since late-December

The Saudi stock market extended losses for a third session on Tuesday amid mixed responses from Middle East stock markets to rising investor concerns of a possible global recession.

Saudi Arabia’s benchmark index eased 0.1 percent, hit by a 4.6 percent slide in Sahara International Petrochemical.

The kingdom and the United Arab Emirates are boosting state spending on social welfare by billions of dollars as they seek to shield their citizens from rising living costs.

The UAE is doubling financial support to low-income Emirati families to 28 billion dirhams ($7.6 billion) to help with soaring inflation in the Gulf state, while Saudi Arabia is set for a 20 billion riyal ($5.33 billion) allocation.

The main share index in Dubai, the Middle East’s travel and tourism hub, dropped 1.1 percent, hitting its lowest since late-December and wiping out gains so far this year.

Blue-chip developer Emaar Properties declined 2.8 percent, while utility firm Dubai Electricity and Water ended 1.6 percent lower. Elsewhere, shares of Tecom Group, which is owned by the investment vehicle of Dubai’s ruler, fell 8.6 percent on their stock market debut.

Business activity in the United Arab Emirates non-oil private sector retreated to its slowest pace in five months in June, although growth remained positive for a 19th consecutive month, a survey showed on Tuesday.

In Abu Dhabi, the index lost 0.4 percent, with the country’s biggest lender First Abu Dhabi Bank off 1 percent.

Oil prices, a key catalyst for Gulf financial markets, slipped as concerns of a possible global recession curtailing fuel demand outweighed supply disruption fears, highlighted by an expected production cut in Norway.

The Qatari benchmark, however, added 0.4 percent, helped by a 3.5 percent rise in Qatar Islamic Bank. Outside the Gulf, Egypt’s blue-chip index fell

0.3 percent, at its lowest in more than 2 years, with Fawry For Banking Technology and Electronic Payment sliding 7.8 percent.

However, the losses were limited by a 8 percent jump in Madinet Nasr For Housing and Development.

Egyptian property developer SODIC said on Tuesday it had submitted an offer to buy up to 100 percent of Madinet Nasr.

SAUDI ARABIA fell 0.1 percent to 11,345

ABU DHABI lost 0.4 percent to 9,270

DUBAI down 1.1 percent to 3,122

QATAR gained 0.4 percent to 12,263

EGYPT eased 0.3 percent to 8,658

BAHRAIN was up 0.1 percent to 1,877

OMAN rose 0.1 percent to 4,119

KUWAIT added 0.2 percent to 8,330