Gulf states economy is in turmoil and they are set for a central bank

[high_treason]

http://www.arabianbusiness.com/541874-u ... ly-trading

Dubai's index - down more than 70 percent this year - fell 2.22 percent to 1,693 points, its lowest close since Sept. 14, 2004, while Abu Dhabi's 3.69 percent decline to 2,409 points took the index to its worst finish since Nov. 18, 2004.

At 2.41 dirhams, Emaar Properties ended at its lowest close since June 10, 2004. The stock fell 3.6 percent while Arabtec Holding fell 9.93 percent.

In Abu Dhabi, telecom Etisalat tumbled 8.85 percent, Aldar Properties 6.41 percent and First Gulf Bank 6.55 percent.

"It is a matter of waves of fear because of the lack of improvement generally in the economy," said Mohammed Yasin, managing director at Shuaa Securities.

Oman's index also fell, tumbling almost 4 percent to its lowest close in more than 20 months, as wealthy investors sought to close positions before the end of the year.

The benchmark, closing lower for a third session, slid 3.78 percent to 5,563 points, its lowest close since April 5, 2007. Raysut Cement led declines, diving 9.98 percent.

"There are a lack of buyers and sellers are desperate," said Sankar Kailasam, head of research at Gulf Investment Services.

"A lot of year-end deleveraging is happening, people wanting to close positions, bring down their debts."

Saudi Basic Industries Corp. (SABIC) and banks led gains in early trading on the Saudi bourse after the kingdom unveiled an expansionary 2009 budget.

The benchmark of the largest Arab bourse rose 0.66 percent to 4,781 points. SABIC added 1.36 percent and Al-Rajhi Bank 1.32 percent.

Kuwait's index posted its biggest one-day gain in more than two months as investors snapped up blue chips ahead of a government plan to inject funds into key stocks in order to boost confidence amid a regional stock market rout.

Kuwait's measure rose 2.77 percent to 8,438 points, its biggest single-day climb since Oct. 9. The finance minister said on Monday a multi-billion-dollar state fund to buy stocks would be launched on Wednesday.

Telecom Zain jumped 7.22 percent and National Bank of Kuwait 8.33 percent.

"The market is reacting to the minister of finance's statement regarding the portfolio injection," said  Ammar Hajeyah, assistant manager, asset management, for local and GCC investments at Global Investment House.

"Investors are capitalising on this opportunity because all blue chips were limit down on Monday. I think the trend will reverse. All of the key stocks were limit up from the moment they opened, with huge bids."

Markets in Bahrain and Qatar also closed higher, led by industrial and banking shares.

The Qatar benchmark added 0.22 percent to 6,716 points. Industries Qatar rose 2.41 percent.

In Bahrain, Ahli United Bank and Gulf Finance House jumped 9.52 percent and 9.91 percent, respectively.

http://www.arabianbusiness.com/541898-g ... ncil-in-09

The GCC plans to have a joint Gulf Arab central bank that will be independent from the governments of its member countries.

So do you think it might be a Rothschild takeover?

I'm especially concerned regarding the "independent from the governments" part!...it sounds like a Middle East Federal Reserve Bank