Dubai leads Gulf stocks surge

KUWAIT CITY, October 14, 2008 (AFP) – Stocks in the booming Gulf emirate of Dubai leapt nine percent at the opening of trade on Tuesday, leading gains in the oil-rich Gulf as global markets made a spectacular surge.

Abu Dhabi and Oman each jumped six percent, but the Kuwait Stock Exchange, the second largest Arab bourse, rose just 0.6 percent. The Saudi market, the biggest in the region, opens at 0800 GMT.

Kuwait was the only Gulf market to drop on Monday when all other bourses in the region bounced back sharply after the rollercoaster ride of the past two weeks.

Tuesday’s surge came after the United Arab Emirates said it had made another 19 billion dollars available for local banks, the latest measure to try to combat liquidity problems arising from the global financial crisis.

The move brings to more than 32 billion dollars the total amount being offered by UAE monetary authorities to meet the needs of local banks.

“A total of 70 billion dirhams (19 billion dollars) has been transferred o the finance ministry and the department has been tasked with putting an adequate mechanism in place with the central bank to inject these funds into the banking sector,” the official WAM news agency said.