Business

LONDON — The collapse in relations between Saudi Arabia and Iran after the Saudi execution of a Shiite cleric puts an end to  speculation that the Organisation of Petroleum Exporting Countries (OPEC) could somehow agree production curbs to lift the price of oil anytime soon.

A Reuters survey of OPEC production showed on Tuesday that Saudi Arabia ended 2015 with its output at full tilt, with no sign of cutting supply to make room for Iran, which plans to ramp up its own output when international financial sanctions are lifted this year.

According to the survey, compiled from shipping data, oil company figures and industry experts, Saudi production for December averaged 10.15 million barrels per day (bpd).

That means it was above 10 million bpd for nine straight months, the longest period of sustained production above that threshold for decades.

The determination by the world's biggest exporter Saudi Arabia to defend its market share despite a global glut has helped drive oil prices to their lowest in 11 years.

Meanwhile, the lifting of sanctions on Iran in line with a nuclear agreement is expected to provide the biggest increase in supply of 2016. The world is now producing 1.5 million barrels a day more than it is consuming, and Iran is promising to add another million bpd to supply over the next 12 months.

OPEC failed to agree any caps on production at its annual meeting in Vienna last month, amid acrimony between Saudi Arabia and Iran, the Gulf region's main Sunni and Shiite powers.

If there was still any suggestion that the two rivals might somehow overcome their animosity to agree to manage supply this year, it was buried on Monday when Riyadh called off diplomatic ties with Tehran over Iran's response to the execution of Saudi Shiite cleric Nimr Al Nimr.

Several OPEC delegates told Reuters they now saw no chance of any improvement in relations between OPEC members, which have been already very low over the past months.

"This new situation will just make it worse and I see no agreement to be reached within OPEC," one representative to OPEC from a member country outside the Gulf region said, on condition of anonymity.

Fellow Gulf OPEC members the United Arab Emirates and Kuwait have backed Saudi Arabia in the diplomatic crisis that could deepen sectarian tension in the Arab world. Iraq, OPEC's second-biggest producer, has joined Iran in criticising Riyadh.

"The renewed surge in Saudi-Iran tensions could further exacerbate the ongoing fight for market share and create additional downside risks to commodity prices," Bank of America Merrill Lynch analysts, led Francisco Blanch, said in a note on Tuesday.

Longest sustained high production in decades

Oil prices have lost two-thirds of their value in the past 18 months and hit an 11-year low last month.

Oil prices initially rose after the cleric's assassination, the usual response to events heralding turmoil in the Gulf, but quickly settled back.

"There is certainly no chance of Saudi Arabia scaling back its oil supply to make space for Iranian oil," said Carsten Fritsch, analyst at Commerzbank. "The existing oversupply may actually grow further in the short term."

Iran has called on OPEC producers, especially both Saudi Arabia and Iraq, to curb supply to accommodate its new volumes, arguing that its production was artificially curtailed by years of sanctions over its controversial atomic programme.

Both Saudi Arabia and Iran, like other OPEC members, need higher oil prices to salvage their state budgets. The export group has acted jointly in the past to curb supply even when its members were at war, notably when Iran and Iraq fought in the 1980s. But this time around, there is no sign of a deal.

Saudi Arabia has been increasingly willing to confront Iran and its allies militarily since King Salman took power a year ago.

Last year, Riyadh began a war in Yemen to stop an Iran-allied militia seizing power there and boosted support to Syrian rebels against Tehran's ally President Bashar Assad.

While the tension between Saudi Arabia and Iran may make it harder to agree measures to restrict oil supply, Bjarne Schieldrop at SEB Markets said the uncertainty it created could still lead to prices going up.

More sectarian conflict in the Middle East could herald supply disruptions, and possibly even interfere with the lifting of sanctions on Iran.

"The Sunni-Shiite divide has now become much deeper with possibly more intense proxy wars in Yemen and Syria. The risk picture in the Middle East has clearly inched higher," he added.

"While we still expect the sanctions to be lifted, the latest events have definitely created some last-minute risk that things may not move in the direction widely expected. If the sanctions are not lifted as planned it would clearly reduce the projected crude oil surplus for 2016," he elaborated.

CHICAGO — US auto sales were set to smash records in 2015 as easy credit, hot new vehicles and strong consumer confidence lured buyers to showrooms.

General Motors (GM), Ford, Fiat Chrysler and Toyota reported strong December sales on Tuesday and forecast the good times would keep rolling in 2016.

"The US economy continues to expand and the most important factors that drive demand for new vehicles are in place, so we expect to see a second consecutive year of record industry sales in 2016," said Mustafa Mohatarem, GM's chief economist.

"The single most important pieces are the ongoing gains in employment and the growth in personal income. When you add in lower energy prices, it's easy to see why consumer spending is strong," he added.

GM forecast that total industry sales for 2015 would hit 17.5 million vehicles once all carmakers report their results by Wednesday.

That would beat the previous record of 17.4 million set in 2000 and be 6 per cent higher than the 16.4 million vehicles sold in 2014, according to WardsAuto.

"It's truly remarkable that the auto industry is finishing off its best year ever just six years after the depths of the Great Recession," said Jessica Caldwell, an analyst with the automotive website Edmunds.com.

While easy credit terms and low gas prices are making it easier for consumers to buy or lease new cars, Caldwell said the attractiveness of product offerings is sealing the deal.

"If you're buying a new car today, you're getting a safer, more fuel-efficient and more technologically packed vehicle than ever before," she indicated in a statement. "Automakers are doing a great job giving the people what they want in a new car."

VW sales hit by scandal       

Embattled German automaker Volkswagen (VW) bucked the trend as sales were hit by a massive pollution-cheating scandal.

VW sales fell 9 per cent to 30,956 in December and were down 5 per cent in 2015 at 349,400 vehicles.

The results were nonetheless better than the 25 per cent drop registered in November after VW stopped selling diesel vehicles shown to have been equipped for years with software that intentionally subverted clean-air regulations.

"As we look towards 2016, we are committed to rebuilding trust in the brand and would like to thank our customers and dealers for their continued patience and loyalty," said Mark McNabb, chief operating officer, Volkswagen of America.

GM sales rose 6 per cent in December to 290,230 vehicles while total 2015 sales for the largest US automaker were up 5 per cent at 3.1 million vehicles.

Ford sales were up 8 per cent in December at 239,242 and rose 5 per cent in 2015 to 2.6 million vehicles.

Fiat Chrysler sales jumped 13 per cent in December to 217,527. Sales for 2015 were up 7 per cent at 2.2 million vehicles.

Toyota sales increased 11 per cent in December to 238,350 and were up 5 per cent in 2015 at 2.5 million.

Both of the Japanese automaker's brands, Toyota and Lexus, posted record-breaking December sales while its Corolla, RAV4 and Highlander vehicles smashed records for the year.

"2015 was a standout year for the auto industry," Bill Fay, general manager for the Toyota division, indicated in a statement. "Best-ever light truck sales helped the Toyota division earn the retail sales crown for the fourth consecutive year."

FRANKFURT — Insurers paid out around $27 billion for natural disaster claims last year with weather causing 94 per cent of incidents, underscoring the challenge posed by climate change, data from reinsurer Munich Re showed on Monday.

While the climate phenomenon known as 'El Niٌo' reduced the development of hurricanes in the North Atlantic, storms and floods still inflicted billions of dollars of damage in Europe and North America, the world's largest reinsurer said in an annual review.

Munich Re indicated that floods in the UK and Scandinavia from storm "Desmond" early last month may cause about 700 million euros ($764 million) in claims, while later flooding from storm "Eva" in the UK may cause overall damage of more than 1 billion euros. Climate change may have played a role in the floods, it added.

Two tornado outbreaks and flooding also hit the United States hard last month but Munich Re said damage estimates were not yet available.

The insurance industry lobbied governments to take action to curb climate change in the run-up to the UN Climate Change Summit in Paris last year, citing both rising payouts in heavily-insured rich country markets and a lack of affordable insurance in developing countries where it is most needed.

"The proportion of insured losses for catastrophes in developing and emerging countries remains very low," said Munich Re board member Torsten Jeworrek.

"The insurance industry is exploring new avenues to close this gap in cover and thus to help people better cope with material losses after a catastrophe," he added.

Munich Re participates in newly established insurance pools to help Caribbean, Pacific Island and African states cope with weather related catastrophes.

Insurers and reinsurers may get a push from an international effort unveiled by Bank of England Governor Mark Carney to develop company disclosures so investors can assess companies' physical, liability and other risks from climate change.

"Quantification and disclosure of insurance risk has helped to drive reinsurance demand for the last 25 years," said John Cavanagh, chief executive at broker Willis Re.

Drop in claims, rise in deaths

The $27 billion in insured damage last year was lower than the $31 billion registered in 2014 and also below the 10-year average of $56 billion, Munich Re indicated.

Overall damage, including that not covered by insurance, was $90 billion last year, the lowest level since 2009.

In all, 23,000 people were killed in 2015, many in the Nepal earthquake in April. The total compared with 7,700 the previous year, but was well below the 10-year average of 68,000.

Lower claims payouts boost insurance industry profit but have a downside for reinsurers, whose insurance company clients often then demand lower prices for reinsurers' backing.

Willis Re said reinsurance prices continued to fall for contracts taking effect at the start of 2016 and that predictions of an end to the multi-year decline had proved illusory.

"The January renewals have unfortunately confounded the hopes of commentators that the market was reaching a pricing floor," Willis Re's Cavanagh said.

The review gave no claims figures for Munich Re itself. The reinsurer is due to report its results from the January renewals contracts with insurers, as well as its 2015 financial results, on February 4. 

AMMAN — The Jordanian-Saudi Economic Forum and the eighth meeting of the joint Saudi-Jordanian business council are scheduled to start on Tuesday with a presentation from the Jordan Investment Commission on investment opportunities and development zones.

The forum, organised by the Jordan Chamber of Commerce (JCC), will also include a second presentation to highlight investment opportunities in the Aqaba Special Economic Zone Authority, in addition to holding bilateral meetings between Jordanian and Saudi businesspeople.

JCC President Nael Kabariti said on Monday the forum provides a new opportunity to enhance economic relations between the two kingdoms and improve communication between Jordanian and Saudi private sector commissions, in addition to providing a ground to exchange views on obstacles facing investments in each country.

He noted that $10 billion of Saudi investments in many vital sectors of the Kingdom's economy positively affect the national economy and contribute to achieving development and providing more jobs to Jordanian.

Meanwhile, Amman on Wednesday and Thursday will be hosting the 15th meeting of the joint Jordanian-Saudi committee which aims at boosting bilateral cooperation at all levels, especially in the economic field.

Ministry of Industry, Trade and Supply Spokesperson Yanal Barmawi said the committee would inaugurate the event by holding a meeting for its technical committee which will discuss all matters related to enhancing bilateral cooperation through sub-committees on economics, services and others.

AMMAN — Real estate trading during 2015 declined by 2 per cent, to JD7.6 billion compared to JD7.76 billion recorded during 2014.

The reduction caused an 11 per cent drop in 2015 revenues which fell to JD377 million compared to JD426 million in 2014, according to a report issued by the Department of Lands and Survey (DLS) on Monday. 

In July 2015, the government announced a package of incentives to stimulate the real estate sector. Under these measures, the first 150 square metres (sq.m.) of apartments sized 180 sq.m. or less were exempted from registration fees. 

The value of apartment exemptions in 2015 increased by 47 per cent to JD120 million, according to the statement. 

Sales to non-Jordanians in 2015 declined by 14 per cent to JD423.2 million. Iraqis topped the list with  2,076 properties, followed by Saudi with a total of 918 properties.

Kuwaitis ranked third with a total of 377 properties and Syrians followed with 223. 

In terms of value, Iraqis topped the list with JD215.1 million investment, estimated at 51 per cent of the total amount. 

Saudis came in second place with a value of JD66.4 million followed by Kuwaitis who invested JD22.9 million.

Syrians ranked fourth with a value of JD17.5 million and the Yemenis invested JD17.3 million.

AMMAN — Net investment by non-Jordanians in 2015 increased by JD10.6 million compared to a JD22.2 million decline in 2014, according to the Amman Stock Exchange (ASE) data.

ASE statistics showed that as shares bought by non-Jordanians in 2015 amounted to JD981.7 million, constituting 28.7 per cent of the total trading volume.

The value of shares sold totalled JD971.1 million.  Arab investors in 2015 bought JD894.3 million worth of shares, constituting 91.1 per cent of non-Jordanian purchases in the ASE.

Non-Arab investment in the stock exchange stood at JD87.4 million, or 8.9 per cent. Last year, Arab share sales reached JD873.5 million or 90 per cent of the total non-Jordanian sales. Non-Arabs sold shares worth JD97.6 million, the ASE statistics revealed.

Non-Jordanians' contributions to the companies listed on the ASE up to the end of December constituted some 49.5 per cent of the total market value, 36.8 per cent of which for Arabs and 12.7 for non-Arabs.

AMMAN — Remittances of Jordanian expatriates rose by 1.9 per cent during the first 11 months of 2015 compared to the same period of 2014, the Central Bank of Jordan announced Monday.

The total remittances amount to $3.495 billion in the first 11 months of 2015 compared to $3.431 billion in the first 11 months of 2014.

LONDON — With crude prices at 11-year lows, the world's biggest oil and gas producers are facing their longest period of investment cuts in decades, but are expected to borrow more to preserve the dividends demanded by investors.

At around $37 a barrel, crude prices are well below the $60 firms such as Total, Statoil and BP need to balance their books, a level that has already been sharply reduced over the past 18 months.

International oil companies are once again being forced to cut spending, sell assets, shed jobs and delay projects as the oil slump shows no sign of recovery.

US producers Chevron and ConocoPhillips  have published plans to slash their 2016 budgets by a quarter. Royal Dutch Shell has also announced a further $5 billion in spending cuts if its planned takeover of BG Group goes ahead.

Global oil and gas investments are expected to fall to their lowest in six years in 2016 to $522 billion, following a 22 per cent fall to $595 billion in 2015, according to the Oslo-based consultancy Rystad Energy.

"This will be the first time since the 1986 oil price downturn that we see two consecutive years of a decline in investments," Bjoernar Tonhaugen, vice president of oil and gas markets at Rystad Energy, told Reuters.

The activities that survive will be those that offer the best returns.

But with the sector's debt to equity ratio at a relatively low level of around 20 per cent or below, industry sources say companies will take on even more borrowing to cover the shortfall in revenue in order to protect the level of dividend payouts.

Shell has not cut its dividend since 1945, a tradition its present management is not keen to break. The rest of the sector is also averse to reducing payouts to shareholders, which  include the world's biggest investment and pension funds,  for fear investors might take flight.

ExxonMobil and Chevron benefit from the lowest debt ratios among the oil majors while Statoil and Repsol have the highest debt burden, according to Jefferies analyst Jason Gammel.

Few large decisions

With only a handful of major projects approved in 2015, including Shell's Appomattox development in the Gulf of Mexico and Statoil's giant $29 billion Johan Sverdrup field in the North Sea, 2016 is also likely to see few large investment decisions.

Projects that could be green-lit include BP's Mad Dog Phase 2 in the Gulf of Mexico, which the company now expects to cost less than $10 billion, around half the original estimate, and Chevron's expansion of the Tengiz project in Kazakhstan, according to Gammel.

Industry-wide, costs will be cut by reducing the size of projects, renegotiating supply contracts and using less complex technology.

After rapidly expanding in the first half of the decade when oil prices were above $100 a barrel, companies are now expected to focus on the most profitable activities, said Brendan Warn, oil and gas equity analyst at BMO Capital Markets.

"Companies want to reduce their range of activity and pick those with the highest returns on capital," Warn indicated.

Shell, which plans to complete its $54 billion acquisition of BG in February, intends to focus on the attractive liquefied natural gas (LNG) market and on deep water oil production, especially in Brazil, both areas in which BG is a leader.

With similar priorities in mind, BP is increasingly focused on the Gulf of Mexico and Egypt, where it approved a $12 billion development in 2015.

While tens of thousands of jobs have already been cut in 2015, more redundancies are expected this year as companies narrow their focus, Warn said.

On top of reducing spending by scrapping and delaying projects, oil majors will see costs come down as contractors agree to further price reductions. 

For example, the annual cost of hiring a drilling ship fell to an average of $332,000 in 2015, compared with $405,000 in 2014, according to Rigzone, which collects industry data.

The drop in investment bodes badly for services and contractor companies, which are seeing their work dry up.

Hold your nerve

But with fewer projects approved, fewer fields developed and less maintenance work undertaken, companies are putting their growth at risk.

"You've got to hold your nerve. If you cut too deeply, it is very, very difficult to take advantage of the price rebound when it comes," a senior official at a European oil major told Reuters.

Tumbling oil prices have cut billions of dollars from oil companies' revenue streams, although strong profits from refining have softened the blow for most.

And while their in-house oil and gas production growth comes under pressure, companies might opt to acquire rivals with less resilient balance sheets, as with Shell's proposed acquisition of BG.

"In the second half of 2016, if we see price stabilisation, I expect companies will be looking to replace reserves inorganically, by making acquisitions," Warn said.

Separately, Chief Executive Bob Dudley warned Saturday that struggling oil producers could suffer even more pain in 2016 with further plunges in already record-low prices.

"A low point could be in the first quarter," Dudley told BBC radio.

Oil prices fell by 34 per cent in 2015, battered by prolonged global oversupply and a slowdown in energy-hungry China's economy.

Dudley predicted that prices could stabilise towards the end of the year, but would remain low for the forseeable future.

"Prices are going to stay lower for longer, we have said it and I think we are in this for a couple of years. For sure, there is a boom-and-bust cycle here," Dudley indicated.

Prices have particularly slumped since December 4 when the Organisation of the Petroleum Exporting Countries (OPEC) decided against limiting production as members fight to keep market share.

Potentially adding to the supply worries was action by the US Congress last month to end the 40-year-old ban on exports of crude oil produced in the country.

In a related development, data showed that Russia pumped a record 534 million tonnes of crude oil in 2015 even as it reeled from a fall in oil prices caused by a supply glut.

The country's oil and gas condensate production last year increased 1.4 per cent year-on-year, with output reaching 10.73 million barrels per day, a post-Soviet record, according to data cited by Interfax news agency. 

The slide in oil prices and Western sanctions over Moscow's role in the Ukraine crisis have pummelled the oil-dependent Russian economy in recent months

The ruble lost around half of its value in 2014 but recovered slightly as energy prices stabilised last year.

But the recent renewed slump in oil prices, with Brent crude falling to an 11-year low last month, casts a shadow on the prospect of economic recovery. 

"All states, including OPEC countries, have concentrated on increasing their output and turning out as much oil as possible not to lose their market niches, not taking note that they are driving prices down," energy consultant Mikhail Krutikhin said Saturday on Russian radio. "It appears that Russia is also following this path."

Russia's central bank predicted that if oil prices remain at their current level, gross domestic product could shrink 2 per cent in 2016. 

President Vladimir Putin assured at his annual press conference last month that the country was prepared for any economic situation, despite the volatility in oil prices.

Russia's 2016 budget had been calculated on the basis of an oil price of $50 per barrel, a figure Putin said was an "optimistic" assessment of the situation, with the price now hovering around $37.

PARIS — French telecoms operator Orange may soon face a crucial choice: shore up its position at home by gobbling up a competitor or expand its presence abroad by making a play for Telecom Italia.

While talks have reportedly begun to take over the telecom assets of the Bouygues conglomerate, thus cutting the number of mobile operators in France to three, the time may be ripe to pounce on Telecom Italia, as two French companies have been increasing their stakes in the operator.

"Orange has a choice to make, to consolidate the French market or consolidate its position as a global operator with major scale in Europe, as doing both could possibly be complex," said Thomas Coudry, a Paris-based telecoms analyst at Bryan, Garnier & Co.

"But it is certain that Telecom Italia is an interesting target for many, not only Orange," he added.

Italy is seen as an appealing market for operators as it has been slower in rolling out high-speed internet, and Telecom Italia has a relatively open capital structure that could see investors take control.

Orange has so far refused to confirm its interest in Telecom Italia, as it has to comment on talks on taking over Bouygues Telecom.

But sources say it may be working on a way to do both.

"Our merger and acquisition services are working day and night to try to find a solution for January with the scenario being explored that would have Bougyues hold 15 per cent of the new company, the French state 19 per cent and employees four to five per cent," said a union source. 

The solution for the merger would be an exchange of shares, which would allow Orange to hold on to cash to seek other acquisition prey, perhaps in Italy.

That is why one Paris-based analyst, who spoke only on condition on anonymity, said the two operations "should be viewed together".

In other words, Orange could be preparing a two-course meal of Bouygues Telecom followed by Telecom Italia.

"Orange is committed to consolidating the European market and Italy is a beautiful opportunity and the company knows it," indicated the analyst. "It is perfectly possible that an approach for Telecom Italia would be made together with Vivendi." 

Vivendi, which was previously active in the French telecoms market with the mobile and home internet operator SFR, owns a 20 per cent stake in Telecom Italia.

'Three cushion bank shot'

The possibility of Orange snapping up Telecom Italia has raised concerns in Italy, including in the government, which is not enthused about the idea of another national champion being acquired by a foreign company.

"They are right to be afraid as each time an Italian company is bought, the heart of its skills emigrate to where its shareholder is located," said Alessandro Pansa, a professor of finance at Luiss Business School in Rome.

"But the government can't do much, it is the consequence of 10 years of poor management of the Italian telecoms market," he indicated.

But that doesn't mean that nothing can be done to make Telecom Italia harder to take over, which is what the company's current management tried to do last month.

At a general shareholders meeting, it sought to have the company's preferred shares, which get better dividend payments but hold no voting rights, converted into regular voting shares.

Vivendi succeeded in blocking the project, which would have diluted its shareholding and by creating more voting shares made any takeover costlier.

"But if someone really has a strategic interest in such a deal, a couple of hundred million euros won't make a difference," said Pansa.

What would make a difference is getting regulatory approval for the mergers. If the European Commission is open to consolidation on the international level, it is concerned about mergers in national markets.

"The present European Union Competition Commissioner Margrethe Vestager is very concerned that if the number of market players is further reduced, in individual countries, consumers will end up paying higher prices, and investment in networks will suffer," said  Anne MacGregor, a lawyer specialised in mergers and acquisitions at the Cadwalader firm in Brussels.

Coudry shares a similar view that the commission appears to be taking a harder line on mergers within countries.

"But on the pan-European level, on the other hand, it is sending rather favourable messages about building continental giants capable of competing globally," he said

A wild card in an Orange bid for Telecom Italia is the investment into the company by Xavier Niel, the owner of the upstart French mobile and Internet operator Free Telecom.

With a 15 per cent stake in Telecom Italia, Niel "is in a position to influence" the terms of a sale of the company, said the Paris analyst who requested anonymity.

He added that Orange faces what in billiard terms would be a "three cushion bank shot" as Niel is interested in "what Free would get in terms of frequencies and infrastructure" as part of any merger between Orange and Bouygues.

KUWAIT CITY — Stock markets in the energy-rich Gulf states ended 2015 in negative territory on Thursday, following a massive decline in oil prices and regional turmoil.

The Saudi stock market, the largest in the region, led the slide by shedding 17 per cent in 2015 followed by Dubai which dipped 16.5 per cent.

The market value of the seven bourses dropped by $110 billion to $930 billion in 2015.

Gulf Cooperation Council (GCC) states were forced to cut back this year after oil prices fell by more than 60 per cent since mid-2014 to below $40 a barrel.

GCC nations Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates all depend on oil for more than 70 per cent of their revenues.

"The persistent decline in oil prices, though expected, hit the domestic economies very hard," M.R. Raghu, head of research at Kuwait Financial Centre Markaz, said. "It negatively affected spending and private investors."

"Stock markets were also impacted by geopolitical factors which pushed investor confidence down," he added.

The Saudi-led military intervention against Iran-backed Houthi rebels in Yemen, conflicts in Iraq, Syria and Libya, and attacks by the Daesh group all caused instability in the Gulf states. 

The Chinese slowdown and the hike in US and domestic interest rates also fuelled the slide, Raghu continued, with most losses taking place in the second half of the year.

Trading was highly volatile on most bourses, which dropped to multi-year lows.

And there is no cause for optimism for next year, Raghu noted.

"2016 will be a very challenging year," he indicated. "Nobody is hopeful of any recovery in oil prices, which are expected to remain below $50 a barrel, and corporate earnings are expected to be flat."

The Saudi Tadawul All-Shares Index (TASI), the largest bourse in the region, shed 17.06 per cent at 6,911.76 points, dropping for the second year in a row.

During December, the TASI dropped to a three-year low, despite new rules allowing foreign institutions to trade directly on the Saudi bourse.

The market was pulled down by the leading petrochemicals sector, which dipped 27 per cent. Most of the remaining 15 sectors also dropped.

The Dubai Financial Market Index posted its first annual loss after four years of sustained gains, ending the year down 16.5 per cent at 3,151.00 points.

The Abu Dhabi Securities Exchange was the best performer among the Gulf bourses, but still shed 4.5 per cent to finish the year on 4,307.3 points.

The Qatar Exchange, the second largest in the Gulf, fluctuated sharply during the year to close at 10,429.4 points, down 15.1 per cent. 

The Kuwait Stock Exchange dropped 14.1 per cent to close on 5,615.12 points, after dipping to an 11-year low in December.

The Muscat Securities Market ended 2015 down 14.8 per cent at 5,406.22 points, while the tiny Bahrain bourse dropped by a similar percentage to close on 1,216 points.