Article: The coronavirus (COVID-19) pandemic and volatility in the emerging stock markets of GCC countries Journal: International Journal of Accounting and Finance (IJAF) 2025 Vol.12 No.3 pp.198 - 209 Abstract: The external shocks stemming from the COVID-19 pandemic, coupled with a sharp decline in oil prices, exerted a profound influence on the volatility of GCC country stock markets. These shocks escalated volatility and risk, triggering a substantial sell-off of stocks. Given the close interdependence of GCC economies with global counterparts, their stock markets are intricately intertwined with major international ones. In this context, the volatility of the US stock market is utilised as a yardstick for global markets. This study aims to evaluate overarching trends and volatility across GCC markets, caused by both COVID-19 and significant oil price drops. Additionally, it aims to assess this volatility in relation to the US market and explore whether GCC market volatility has reverted to its pre-crisis state. Results show that the volatility within GCC stock markets surpassed that of the US market. Furthermore, findings indicate that market volatility in Saudi Arabia, the UAE, and Qatar had normalised to their pre-crisis levels by July 2020. Given that stock markets reflect prospective economic performance, this paper advocates for policy recommendations targeted at GCC institutions. Inderscience Publishers - linking academia, business and industry through research

Title: The coronavirus (COVID-19) pandemic and volatility in the emerging stock markets of GCC countries

Authors: Elgilani Elshareif; Muhammed Kabir; Davide Contu; Ikhlaas Gurrib; Murad Mujahed

Addresses: Canadian University of Dubai, Dubai, UAE ' Deceased; formerly of Yorkville University, 2000 Steeles Ave. W., Toronto, ON L4K 4N1, Canada ' Canadian University of Dubai, Dubai, UAE ' Canadian University of Dubai, Dubai, UAE ' Putra Business School, University Putra Malaysia, Malaysia

Abstract: The external shocks stemming from the COVID-19 pandemic, coupled with a sharp decline in oil prices, exerted a profound influence on the volatility of GCC country stock markets. These shocks escalated volatility and risk, triggering a substantial sell-off of stocks. Given the close interdependence of GCC economies with global counterparts, their stock markets are intricately intertwined with major international ones. In this context, the volatility of the US stock market is utilised as a yardstick for global markets. This study aims to evaluate overarching trends and volatility across GCC markets, caused by both COVID-19 and significant oil price drops. Additionally, it aims to assess this volatility in relation to the US market and explore whether GCC market volatility has reverted to its pre-crisis state. Results show that the volatility within GCC stock markets surpassed that of the US market. Furthermore, findings indicate that market volatility in Saudi Arabia, the UAE, and Qatar had normalised to their pre-crisis levels by July 2020. Given that stock markets reflect prospective economic performance, this paper advocates for policy recommendations targeted at GCC institutions.

Keywords: COVID-19 pandemic; oil price fluctuations; GCC emerging stock markets; volatility; economic policies.

DOI: 10.1504/IJAF.2025.152553

International Journal of Accounting and Finance, 2025 Vol.12 No.3, pp.198 - 209

Accepted: 30 Apr 2024
Published online: 27 Mar 2026 *

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Title: The coronavirus (COVID-19) pandemic and volatility in the emerging stock markets of GCC countries

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