Arab bourses score impressive gains in 2007

Jan 1, 2008, 14:19 GMT

Amman - Arab stock markets recorded major gains in 2007, above all thanks to soaring oil prices that secured huge surplus petrodollars for oil-rich Arab countries, analysts said Tuesday.

'I believe regional markets have benefited from the huge petrodollars seeking investment outlets, declining interest rates and the restoration of confidence in stocks,' Wajdi Makhamreh, CEO of al- Sanabel International Co. told Deutsche Presse-Agentur dpa.

'Furthermore, the real estate credit crisis in the United States has prompted many Arab investors to send their money back to emerging markets in the Middle East to avoid further losses,' he said.

The all-share price index of Jordanian shares gained 36 per cent in 2007, closing at 7,519 points compared with 5,518 points at the end of 2006, the CEO of the Amman Stock Exchange Jalil Tarif said.

The ASE market capitalization grew by 39 per cent in 2007, closing year at 29.2 billion dinars (41.2 billion dollars), Tarif added.

By the end of November 2007, the net investment of non-Jordanian investors increased by 159 per cent, to 469 million dinars from 181 million dinars at the end of 2006.

As a result, non-Jordanian investors ownership in the ASE market capitalization increased to 48.2 per cent at the end of November 2007, compared with 45.5 per cent a year earlier, Tarif said.

Saudi shares gained 58.6 per cent in 2007, with the Tadawul All Share Price Index (TASI) of the Arab world's largest stock market closing on December 31 at 11,175.96 points.

The Saudi market's capitalization stood at the end of 2007 at 1.9 trillion Saudi riyals (506.6 billion dollars).

The value of Kuwaiti stocks also grew by 24.75 per cent in 2007, with the KSE all-share price index closing at 12,559 points.

The value of the United Arab Emirates firms listed at the stock exchanges of Dubai and Abu Dhabi increased by 49.2 per cent in 2007, with the benchmark price closing on December 31 at 6,016 points.

The capitalization of the UAE stocks reached 842.6 billion Dirhams (229.5 billion dollars) at the end of 2007.