World Economy

(P)GCC Equities Drop

(P)GCC Equities Drop (P)GCC Equities Drop

The (Persian) Gulf Cooperation Council equity markets fell in early trade, with Saudi Arabia’s benchmark index leading the losses as it plunged 3.23% to reach 6,766.56 following the announcement on the Saudi government’s budget deficits, Albawaba reported. Meanwhile, the Dubai Financial Market index fell 0.78% to reach 3,095, with the index reaching a low of 3,078 just an hour after trade opened. Also in the UAE, Abu Dhabi’s benchmark index fell 0.63% to reach 4,225.24. Elsewhere in the (P)GCC, markets were also in the red as Bahrain Bourse’s index slid 0.42% to reach 1,199.34, and Qatar’s QE index dropped 1.16% to reach 10,277.42. On Monday, Saudi Arabia’s government announced an 840 billion riyal ($224 billion) budget for 2016–a drop from the 975 billion riyal budget this year. The announcement showed soaring budget deficits that reached 367 billion riyals in 2015. The government said it was planning to cut spending in 2016, with cuts being seen in energy subsidies as petrol prices were hiked over 50%.