GCC Investors on Edge as US Tariffs and Oil Price Slump Spark Concerns

 

GCC investors are growing increasingly concerned as US President Donald Trump's newly announced tariffs and the oil price plunge threaten to disrupt the global economy. The tariffs, dubbed "Liberation Day" by Trump, impose a minimum 10% universal tariff on all imports into the US, effective April 5. Some countries, including the UAE and Saudi Arabia, will face additional "reciprocal" tariffs ranging from 10% to 28%.

The move has already sparked a sell-off in global markets, with Gulf stocks sliding and gold prices soaring to record highs. Dubai's stock index tumbled, poised for its biggest daily decline this year, while Abu Dhabi's benchmark fell 0.6% and Saudi Arabia's measure slipped 0.3%.

Energy products, including oil and gas, are exempt from the tariffs, but the indirect impact on the global economy and oil prices is still a concern. GCC investors are bracing for potential losses, with some analysts predicting that the tariffs could lead to higher prices for consumers, reduced economic growth, and even a recession.

In response to the tariffs, investors have been flocking to safe-haven assets like gold, which hit a record high of $3,167.57 an ounce. The rush to safe-haven assets has also led to a decline in stocks, with the S&P 500 opening down on the news.