Many investors from the Gulf region are locked down into defense mode on Sunday after news of a delayed military strike at Syria headlined many news agencies. The delay of an imminent military strike was due to US President Barack Obama's decision to seek congreasional approval for such an action.
Evidence as to the use of chemical weapons on civilians was released by the United States. The footage pointed to the regime of Syrian President Bashar el-Assad as the culprits of the unlawful attack.
The military strike is seen as punishment for the use of chemical weapons on civilians. If Congress votes to approve the military action, it would be done at the earliest by mid-September.
In response, the Saudi Arabian government has placed the level of military alert on high as it anticipated the possible military action against Syria. This was confirmed by anonymous sources with Reuters. In some other Gulf region markets, a loss of between 5% and 6% of market value was registered last week. Many regional experts expect this trend to continue for the coming weeks.
Investors have shifted to the purchase of defensive stocks, such as Abu Dhabi banks as these payout high dividend yields.
Join the Conversation