GCC investor confidence dipped 5.7 points last month, although it mainly remains in positive territory, according to the latest research by Shuaa Capital released on Monday.
All GCC indexes fell during May, with the UAE seeing the largest decline of 14.7 points taking it to 104.7.
Qatar also saw a significant decline as it fell from 131.9 points in April to 121.9 points in the latest survey by the Dubai-based investment bank.
The GCC Investor Sentiment Report is the only one of its kind for Gulf markets. It ranks confidence in all six GCC countries, giving them a rating of between 0 and 200, with scores over 100 deemed to be positive, and those below negative.
“While we saw progress made on the Dubai World debt situation in May, with the largest banks agreeing to the terms of the restructuring agreement, there are still a number of other issues restricting investor confidence,” said Sameer Al Ansari, Shuaa Capital CEO.
“Europe is going through an economic crisis at the moment and with GCC economies heavily influenced by the West, it comes as no surprise that regional confidence has been dampened.”
Oman and Saudi Arabia sustained moderate declines as they fell to 107.3 points and 123.6 points respectively.
Meanwhile, the Kuwait and Bahrain indices moved below the 100 point threshold indicating overall negative sentiment. Kuwait fell to 97.9 points and Bahrain to 98.6 points.
“Despite a decline, the six-month outlook for economic conditions in the region, according to investors surveyed, very much indicates that the situation is set to improve,” said Oliver Schutzmann, author of the report and Shuaa chief communications officer.