DUBAI: Investor confidence in the six Gulf Arab economies dropped 2.4 points in January with the UAE leading declines, a report from investment bank Shuaa Capital said on Monday.
Worries over Dubai’s debt position was keeping investors “increasingly uncertain” toward the region, the report added.
Dubai shocked global markets on Nov. 25 when it sought a debt delay on $26 billion linked to flagship conglomerate Dubai World.
In January, Standard & Poor’s pulled its rating on a unit of major investment vehicle Dubai Holding, adding to investor anxiety about the Gulf emirate. Globally, stocks in emerging economies have seen a sharp rebound after governments spruced up spending with stimulus packages and foreign investors poured in fresh funds.
However, Dubai’s flagship index is down more than 11 percent year-to-date. Saudi Arabia was the only country in the region with a positive rise in sentiment.
Saudi Arabia, like other Gulf nations, boosted spending on infrastructure, education and health care last year to underpin economic growth and has repeatedly warned of the need to keep stimulus packages in place and against early exits.
The six-month investor outlook for the region remains in the positive territory, Shuaa said, with 35 percent of respondents saying economic conditions would improve.
