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Earnings growth in the UAE stock market based on reported 2001 earnings has outpaced all the other markets in the Gulf region and is expected to continue doing well into 2002, according to Shuaa Capital. The report puts its stakes on the UAE stock market despite the average P/E ratio of the UAE market being below both the Kuwaiti and the Saudi Arabian stock markets. It said that not only has the UAE emerged the leading stock market in the region by for Shuaa, the UAE market is the top pick in the region.
However, given the macro economic picture of the region as a whole, the report is of the view that there is little likelihood of an imminent return of the GCC-wide bull markets of 2001, with Saudi Arabia in particular likely to witness some back tracking due to edgy oil prices. "The current situation leaves most of the Gulf countries facing stifled growth in the upcoming year, together with a rapidly evolving, and not yet defined role on the global political and to a lesser extent, economic scene.
Specifically on the UAE, it said that the ...