Trump factor to impact GCC market

Publisher: The Peninsula

Date : 10 October 2016

On a day the global markets suffered a slump on the election shock of Republican Donald Trump, market leaders strongly believe the change of guard will influence the sentiments in GCC and Qatari markets.

The regime change will have its impact on the emerging market and Qatar might experience the wobble, said Talal F Samhouri, Head of Asset Management, Amwal.

“Qatari market might be hit by the negative sentiments. But I would like to look at from a long term perspective. The GCC markets are solid with bright future with young population that support the economy and I think is an opportune time for smart investment investors to pick up excellence

Global markets were caught by surprise and GCC equities sold off in sympathy this morning. But having initially fallen 2 percent, Qatar received its losses and Saudi closed up almost 1 percent. After the surprise, the dust has largely settled.

In the short term, oil and domestic fiscal policies will remain the primary drivers of the GCC. However, the medium term outlook for Qatar and the region partly depends on how many of President Trump’s campaign promises will be kept once in office.

However, in the in ital period of the Trump presidency the probabnility of dramatic changes for the GCc remain modest, he added. Commenting on US Election result, Professor Inderjeet Parmar, Professor in International Politics of City, University Of London said in a note sent to The Peninsula:

“Long term, the US remains the most powerful, innovative, technologically and scientifically advanced economy in the world, so it will continue to improve and grow. But this shock will unnerve markets short-term.”