Financial markets in the Gulf economies have performed poorly in the past few weeks despite the sharp rise in oil prices. Equity markets have actually fallen back and, in some countries, dollar bond spreads over US Treasuries have widened. Investors may be coming round to the realisation that, while the nearterm economic outlook has improved, long-term growth across the GCC is likely to be subdued. Growing geopolitical tensions across the Middle East may have also weighed on investor sentiment.
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