Dubai: Stock markets in the energy-rich Gulf states nosedived at the start of trading Monday after oil prices crashed amid a price war in the global market.
Kuwait's Premier index tumbled 9.5 per cent and trading was suspended, while Dubai financial market dropped 9.0 per cent and Abu Dhabi securities Exchange shedded 7.1 per cent.
Oil prices crashed at the opening on monday after OPEC and its allies failed to reach an agreement on production cuts.
Oil prices are so sensitive for the six-nation Gulf co-operation council (GCC) alliance as they generate between 70 percent and 90 percent of public revenues.
The crash in oil prices comes at a time when all the six nations Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates have been struggling to meet persistent budget deficit as they resort to austerity measures.
