Jedda: Saudi Arabia has surged in a record-breaking stock market rally today, with the country’s benchmark index surging to new record highs, with investors rushing to buy and sell their shares as the country continues to suffer a devastating war of attrition with its rival Iran.
The Dow Jones Industrial Average closed at 23,835,000.
The Nasdaq Composite index closed at 1,937,817.
The S&P 500 Index closed at 2,021,743.
The stock market was up 17.1 percent this morning and the Nasdaq was up 13.5 percent, according to the BIS, which has updated its index forecasts to match the index movements.
Saudi Arabia remains one of the world’s most important trading partners, with about half of its exports to the Middle East.
Saudi exports to Iran accounted for a significant portion of its oil imports in 2015, and the country has been one of Iran’s key allies in the war against the Islamic State of Iraq and the Levant (ISIL) group.
Saudi’s oil exports to Europe have also skyrocketed as a result of the war in Syria.
On the world stage, Saudi Arabia is one of only two major trading partners for the United States and is one the largest exporters of crude oil to the United Nations.
Its oil exports from the Middle Eastern country reached $100 billion last year.
Saudi Arabia has a huge debt burden, but it has managed to refinance that debt, said Mohammed Shamsi, an analyst with Sberbank.
“The Saudis are not going to be in a position where they are going to have to default on their debt,” he told the Daily Beast.
Saudi oil imports to Europe rose by over 100 percent in 2015 as a direct result of its support of the Syrian rebels fighting ISIL in Syria and Iraq, Shamsis said.
Saudi exports to India rose by 60 percent, in large part due to its efforts to combat climate change, and its trade with India has also risen in the wake of the Paris climate agreement.
India imports $7.6 billion worth of Saudi crude a day, and India is one to Saudi Arabia on the global crude oil trade list, which includes countries like Qatar, Kuwait, Saudi Arabia, Kuwaiti, UAE and United Arab Emirates.
The US has a $12 billion trade deficit with Saudi Arabia.