Financial analysts on Sunday said that a "healthy" correction of GCC bourses was no cause for concern, and that the drop was temporary and would not be long-term.
"This is a healthy and needed correction. It will not be fundamental and long-term, but rather short to mid-term,” stated Kuwaiti economist Jassem Al Saadun who also serves as the head of Al-Shall Economic Consultancy, according to the AFP.
Correcting overvalued markets has led to a drop of some 200 billion dollars for five major bourses in the Gulf, marking a drop below their 2005 closing.
“As long as the financial and security situations continue to be good, there is no cause for panic,” Saadun reassured investors.
Impressive gains have been made over the past five years by Gulf markets, with the GCC's seven bourses increasing nine-fold from 119 billion dollars to 1.146 trillion dollars.
