Saudi’s markets tumble amidst ‘people power’ fears

According to the Telegraph, serious investors are leaving the Gulf in droves because of escalating worries about  ‘people power-type’ rebellions due recent civil unrest in Bahrain and Saudi Arabia. This week, Saudi’s Arabia’s Tadawul stock index went down 11pc with trading dominated by banks and insurance companies. Dubai‘s borse is also trading quite low.

Recent sellings were precipitated when a Shi’ite cleric in Saudi’s Eastern Province was arrested recently after asking for the country’s move to democracy and a constitutional monarchy.  The Shi’ites are in the minority over the ruling Sunni elite and this has been a cause of contention in Bahrain and Saudi generally.

As Saudi is the world’s centre for global crude oil supply, JBC Energy, a high-profile consultancy said, according to the Telegraph: “Unrest in this region can have fatal consequences for the world”. “The plunge on the Saudi stock exchange can be interpreted as a sign of waning trust.”

[Middle East and Africa Contributor]

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