Global financial markets - with the exception of oil and gas - experienced their worst days since the beginning of this year, as they recorded mixed declines due to the Russian military intervention in Ukraine.
At dawn on Thursday, Russia launched a military operation in Ukraine, which was followed by angry reactions from several countries in the world and calls for tougher sanctions against Moscow.
The Arab region in its markets was not far from what is happening in Eastern Europe, as it was subjected to sharp declines in the stock markets, while signs of high prices began in the local markets.
money markets
The red color dominated the Arab financial markets, especially the Gulf ones, due to the attacks carried out by the Russian army on targets in eastern Ukraine.
In Saudi Arabia, the main market index "TASI" declined by 1.84% to 12297.6 points, led by the National Bank, which declined 4%.
In the UAE, the Dubai Stock Exchange index also fell 1.84%, and closed at 3274.4 points, and the most prominent loser was "Emaar", which fell by 3.37%.
The Abu Dhabi market index fell 0.3% to 9072.2 points, and the shares "Tourism and Hotels" and "Future Holding" led the losses, dropping 10% each.
Qatar Stock Exchange index fell 0.87% to 12638.8 points;
The main losers were the shares of "Industry Qatar" and Qatar National Bank, down 0.84% and 0.43%, respectively.
The first index in the Kuwait market recorded a slight decrease by 0.02% to 8320.3 points, and the losses were led by "Hilal Cement" and "Bayan Holding" shares, down by 13.45% and 7.49%, respectively.
The Muscat Stock Exchange index fell 0.2% to 4036.7 points, and the losses were led by the "Sharqiya Holding" share, down 10%, and the National Bank of Oman fell 1.61%.
wheat imports
World wheat prices have risen to unprecedented historical levels, exceeding the barrier of $486 per ton, an increase of more than 70% compared to prices before the Russian military operation.
Arab countries rushed to issue data showing what they possess of wheat in particular, given that Russia is the largest exporter of wheat in the world with 44 million tons annually, while Ukraine is fifth with an average of 18 million tons.
While Arab countries have reassuring reserves of wheat as a strategic and sovereign commodity, other countries such as Lebanon, which do not have sufficient reserves, may face fluctuations in wheat supplies.
Until today, developments in Eastern Europe did not affect supply chains, and they remained stable after the end of the first day, from the transition of these tensions to the stage of intervention on the ground and the implementation of Russian attacks on Ukrainian targets.
Yesterday, Thursday, the Lebanese newspaper Al-Akhbar reported that Lebanon's wheat reserves are sufficient for the country's needs for only one month, which fuels fears that the length of the crisis may open the door to a crisis with dire consequences.
In Morocco, the government announced that it will bear the difference in wheat prices inside the country due to its increase due to the repercussions of the Russian-Ukrainian crisis.
The Jordanian Ministry of Industry, Trade and Supply hastened to reassure the markets, declaring that the stock of wheat is sufficient for local consumption for 15 months, and the barley stock is sufficient for 11 months.
In Egypt - the largest importer of wheat in the world with an average of 13.8 million tons annually - the government announced that the reserve is reassuring and suffices the country's needs for 5 months, and on March 15th, the wheat harvest season begins, which suffices for 4 months, according to the government.
energy prices
In early trading on Thursday, crude oil prices rose to $ 104 a barrel, Brent, the highest level since mid-2014, but settled in evening trading at $ 95, and opened trading on Friday at $ 97.5.
As for natural gas, its prices rose by 73% until the beginning of evening trading yesterday, and reached $1650 per thousand cubic meters.
Before the closure, it fell to an average of $1,390 per thousand cubic meters, due to statements by US President Joe Biden, in which he stressed that he would not intervene militarily in Ukraine, in response to the Russian attack.
But the Arab region has gathered winners and losers from eastern European tensions, as oil and gas exporting countries are recording rising financial revenues, due to high energy prices.
The countries of Saudi Arabia, the Emirates, Iraq, Bahrain, Kuwait, Oman, Algeria, Libya and Qatar are financial beneficiaries of the consequences of the tensions, which have increased energy prices.
But other countries, such as Tunisia, Morocco, Jordan, Lebanon, Egypt and Sudan, will be affected by the prolongation of the current crisis, and the maintenance of energy prices at their current levels.