Gulf Stocks Lose $6.8 Billion in 72 Hours Amid Saudi Purge

  • Stock bourses across GCC decline as political risk rises
  • Total market capitalization of equities falls to 2016 low

StanChart's Maratheftis Says Saudi Arabia Is Changing

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Saudi Arabia’s anti-corruption purge and deepening feud with Iran have spurred a selloff across Gulf stock markets to the tune of almost $7 billion, a sign of the volatility to come as governments in the region push ahead with reforms.

The decline cut the combined market capitalization of bourses in the six-nation Gulf Cooperation Council to $910.7 billion, the lowest level in a year, according to data compiled by Bloomberg. Most major stock indexes in the region retreated on Wednesday, led by a 1.9 percent drop in Dubai’s DFM General Index, the steepest in a year.