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Most Gulf stock markets moved little in early trade on Tuesday as oil prices stabilised, but Kuwait was weak after its government said it was looking into imposing a corporate tax on local companies.
Brent crude held near $54 a barrel on Tuesday after touching a six-week low of $52.50 in the previous session.
Dubai’s stock index, which had tumbled 5.1 per cent earlier this week, edged down 0.4 per cent as local stocks were equally split between gainers and losers.
Abu Dhabi edged up 0.3 per cent on the back of blue-chips Etisalat and Abu Dhabi Commercial Bank, up 0.4 per cent and 0.8 per cent, respectively.
Qatar’s benchmark slipped 0.3 per cent as two companies sensitive to the oil price, Industries Qatar and Gulf International Services, fell 0.5 and 1.7 per cent, respectively. Qatar Islamic Bank added 1.0 per cent and was the main support.
Meanwhile, Kuwait’s index fell 0.8 per cent after Commerce and Industry Minister Abdulmohsen al-Madaj said the cabinet was cooperating with the International Monetary Fund to discuss introducing a corporate tax for local companies. He gave no details.
Launching a new corporate tax would be a major, politically sensitive policy shift for Kuwait, and for the wealthy Gulf oil exporters in general. So far they have relied on their oil revenues to mostly avoid direct taxation of corporate profits.
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