DUBAI: Stock markets in the energy-rich Gulf states made a strong rebound in opening trade Tuesday, led by the Saudi bourse which jumped 5.6 percent, as oil prices bounced after heavy losses.
Energy giant Aramco, which dominates the Saudi Tadawul market, gained 5.5 percent after a series of sessions in the red where it tumbled below the price where it listed last December.
Dubai Financial Market surged 5.5 percent while its sister Abu Dhabi market rose 4.2 percent, partly reversing steep declines.
Boursa Kuwait, where trading on its premier index was suspended for two days due to huge losses, rallied 6.6 percent and the Qatar stock market rose 3.0 percent.
The small bourses of Bahrain and Oman rose 1.2 percent and 0.2 percent respectively.
All the Gulf stock markets sustained heavy losses in the past two days, dropping to multi-year lows after oil producers failed to reach an agreement on output cuts in an impasse that sent oil prices crashing.
After Russia rejected calls from oil-exporting group OPEC, which includes Saudi Arabia, for deeper output cuts to combat a coronavirus-fueled slump in demand, Riyadh drove through massive price cuts in a bid to win market share.
As the confrontation flared, oil prices — the mainstay of public revenues in the Gulf states — posted the single biggest one-day loss in three decades on Monday with Brent crude sliding to $33 a barrel.
But as Brent gained more than 7.0 percent to around $37 a barrel on Tuesday, energy and global stocks also rebounded in Asian trade, a day after global equities suffered their biggest losses in more than a decade.
Saudi Tadawul leads Gulf rally as oil prices recover
https://arab.news/n8cj4
Saudi Tadawul leads Gulf rally as oil prices recover
- Energy giant Aramco gains 5.5 percent
- All the Gulf stock markets sustained heavy losses in the past two days
US Treasury welcomes reactivation of Syria central bank account at New York Fed
RIYADH: The US Treasury said it welcomed the reactivation of the Central Bank of Syria’s account at the Federal Reserve Bank of New York, marking the first time it has been operational since 2011.
The account had effectively been frozen after the outbreak of Syria’s civil war in 2011, when Washington imposed sweeping targeting the Syrian government, state institutions and individuals associated with the regime, designed to isolate Damascus financially and restrict its access to international banking channels.
It is the latest step in efforts to reintegrate Syria into the international financial system. The country has also begun reconnecting to the Society for Worldwide Interbank Financial Telecommunication network, a move that would end roughly 14 years of financial isolation and restore access to global banking channels.
In a statement posted on social media, the US Treasury Department said it was working with Syria’s new authorities to “responsibly reintegrate Syria into the global financial system,” adding that it welcomed the Syrian central bank’s announcement that its account at the New York Fed had been restored.
The post also stated: “Sanctions relief was just the first step to realizing the President of the United States’ historic vision of greatness and prosperity in Syria.”
The release added: “We welcome the Syrian Central Bank’s momentous announcement that its account at the Federal Reserve Bank of New York was officially reactivated for the first time since 2011.”
Over the course of the more than 13-year conflict, sanctions expanded to include broader economic restrictions, including the Caesar Syria Civilian Protection Act enacted in 2019, which targeted foreign entities conducting business with the Syrian government.
The measures contributed to Syria’s deep financial isolation and complicated humanitarian and reconstruction efforts.
Efforts to restore financial channels have been discussed intermittently as international actors assess pathways for humanitarian assistance and potential economic stabilization.
However, broader sanctions frameworks remain in place, and significant political and regulatory hurdles continue to shape Syria’s reintegration into the global financial system.
In recent years, regional institutions have gradually renewed engagement with Syria as part of broader efforts to stabilize the country and support economic recovery after more than a decade of conflict.
Syria was readmitted to the Arab League in 2023 after a 12-year suspension, reopening diplomatic channels with several Arab states.
