Reuters reports on Monday that Saudi Arabia’s stock index has reached its lowest level in more than three months. Regional markets are sinking as investors are wary of banks with links to Turkey’s deepening economic turmoil.
Several Gulf banks have expanded into Turkey in recent years, attracted by its large population and surging economy. Emirates NBD slumped by 4.6 percent and Emaar Properties, which has projects in Turkey, was down 2.3 percent.
National Commercial Bank (NCB), Saudi Arabia’s largest bank by assets, fell by 3.7 percent.
MENA’s largest bank, Qatar National Bank, declined by 2.6 percent. Around 15 percent of the bank’s assets and 14 percent of its loans relate to Turkey. Qatar’s Commercial Bank, which owns Turkey’s Alternatifbank, edged down 0.6 percent. The wider index shed 0.8 percent.
In Kuwait, Kuwait Finance House and Burgan Bank, both of which have loans and other assets in Turkey, declined by 1.3 percent and 1.4 percent, respectively.