Tradeguider Blog

Empowering you to trade alongside the smart money through proven and pedigree methods and expert guidance that is with you all the way

Trading in the Middle East - A Market Overview

Posted by the Tradeguider Team on Feb 23rd, 2021 1:57:53 PM


Tradeguider has seen a burgeoning interest from traders in the Middle East. One of those is Bahrain-based Coenraad Bezuidenhout who you might have caught on some of our webcasts.

Based in Bahrain, Coenraad is in the process of setting up a new company, WCG Technology Solutions W.L.L., which provides support for new and experienced traders alike. We asked him to share his insights on trading the markets in the Middle East.


Trading the markets in the Middle East 

Headshot - Coenraad-1

The stock exchanges in the region 

The biggest exchanges are in Saudia Arabia - Tadawul -  and Dubai . Bahrain, Qatar and Kuwait are next in size.

You also have the Abu Dhabi exchanges in the United Arab Emirates. Oman, Jordan, Israel, Palestine and Iraq all have their own exchanges.

It is recommended, due to political concerns, to stay clear of Iran's stock exchange. I would have included Qatar in this advice before but sanctions have now been lifted and its markets are now worth an investigation.

Foreign investors wishing to get in involved in these markets will find that the industry is regulated by the central banks of each country. A reputable local broker will therefore show adherence to the T&Cs of their local central bank. English is widely spoken.


Fundamental factors driving the markets

Markets in the region are, as you’d expect, driven by the energy market given that the economies rely on the sale of oil and gas. Saudi Aramco was the largest stock listing in history (Saudi Arabia stock 2222) and can be traded on the Saudi Arabian Tadawul exchange but in 2020 it looked weaker in relation to NYMEX, as plotted on the orange line in the following chart from



Saudi Aramco gained 10.54% vs 26.78% of the oil price futures during 2020.


What’s been happening since the pandemic hit

As with all global markets every market in the region showed an explosive down move in March 2020. Since then they have been recovering to pre-pandemic levels to one or another extent. Some markets are much slower to recover than others.


Oman_stock_exchange Abu_Dhabi_stock_exchange
For instance, as we can see from these charts from, Oman has not been as fast to recover from as other markets like the UAE and Saudi Arabia.

Forex trading

Local currencies are all pegged against the USD (for example the AED (United Arab Emirates Dirham) is pegged at exactly 3.6725000, the SAR (Saudi Riyal) at 0.2666) and they shift exactly the same way as the USD would against other currency pairs like the USD/GBP or USD/EUR.  There are very small micros-fluctuations between them but you are dealing with the same pattern.

For example the SAR/EUR is not a major currency pair but it follows the exact same movements as the USD/EUR.  It's a 1:1 ratio between them meaning a long position in the major currency pairs can also mean a long in the SAR/EUR and vice versa.


What do local traders do?

One market that has continued to be very liquid across the region despite the pandemic is that for the Sharia-compliant bond-like Sukuk instrument which yields 2-3% a year as an investment, though some people do trade them. According to Fitch Ratings, new Sukuk issuances have come to a halt during the pandemic and analysts have downgraded their ratings for sukuks compared to those they’ve given in the past 3 years.

Futures and options trading is untapped in the Middle East markets as the exchanges don’t always offer derivatives against the stocks they list. There isn’t enough volume or liquidity to hedge trades. Therefore many traders will use traditional buy and sell with stop losses and profit targets and many trade the USA or European markets in addition to their local markets.

We see many advertisements in the region for binary option platforms like Olymptrade or other binary option platforms. But as with a trader anywhere in the world, being persuaded by videos on Youtube that make outlandish claims about potential gains could lead to losses especially if risk management and Wyckoff VSA principles aren’t implemented.

My feeling is that local traders would do well to consider trading a combination of stocks for the local market, forex trades on major currency pairs and options for the USA market.


Where I'm at with my own trading

Everything needs to be underpinned by Wyckoff VSA. Consider the change in my performance once I started using it, as shown by these images I created from data from Interactive BrokersConfirmed Trading Report.


This shows my performance from 21st December 2020 to 12th February 2021. You can see the marked improvement once I had got to grips with Tradeguider’s  Automated Alerts.


These charts show the winning vs losing and total trades from the 21st of December 2020 to the 12th of February 2021 (using data also from Interactive Brokers). I manually calculated the ticks based on the confirmed trades and their results.


In summary

Some of the Middle East markets have a way to go to recover from the pandemic but still offer great opportunities for traders who want to trade international markets, not only because the local economies are growing, but also because an improved relationship with Israel is prompting greater inwards investment in the region.


Coenraad uses Tradeguider's Automated Alerts  and Stock Scanning services along with the Smart Center Pro platform which you can check out here: 

Tradeguider is the home of Wyckoff Volume Spread Analysis. We have a growing community of traders in the Middle East and we now have a team in the region that includes Coenraad. We will be launching new services that especially cater to the region in the coming months so get in touch if you want to know more.

Posts Library

Five Steps to Consistent Trading with VSA Lite
Ways to Improve your Chart Reading - Part 2
Ways to Improve your Chart Reading - Part 3
A Newbie Trader`s Journey - Diary No 2
A Newbie Trader`s Journey - Diary No 1
Ways to Improve your Chart Reading - Part 1
Currency Spotlight: British Pound/US Dollar
An Affordable and Regulated Crypto Product
Introducing VSA Lite: a Gateway to the VSA World
Diamonds, Art, Wine, Property....or the Stock Markets? We Compare Investment Options
Reset your Plans for Success - A downloadable Worksheet
2022, A Year in Review
Some Universal Rules of Trading
Four Tips for Trading in Tumultuous Times
Tracking Your Trading Expenses to Maximize Profit
Stock Spotlight: Alphabet - GOOG
When Thinking Too Much Stops Your Trading Success
New Chances for Learning: June`s Mastermind Event
Should I Stay or Should I Go Now? Trade Entry and Exits
Is Technology Holding Back Your Trading? 5 Tips to Keep Your Tech on Point
Trading Plans and Journals: Fail to Plan is Planning to Fail
How to Select a Stock
2021, A Year in Review
Can Wyckoff VSA be Used to Beat High Frequency Trading?
The Best Way to Set a Trading Goal
Do you Need Fundamental Analysis if you Use Wyckoff VSA?
Can Trading the Markets Ever be Ethical?
Combining Technical Analysis and Wyckoff VSA - an Insider`s View
Derivatives and Wyckoff VSA
Trading Cryptos and Wyckoff VSA: 3 Things You Need to Know
Mindset Tips for Traders: 7 Ways to Help Your Trading Be More Consistent
Trading in the Time of Corona: 2020, a Review
Enhance Your Trend Trading Strategy with Wyckoff VSA Tools
How to Relieve the Strain of Chart Analysis with Trade Alerts
How to Avoid Common Beginners Mistakes in Trading
Politics and Trading the Markets
Q&A with Tradeguider CEO Gavin Holmes
Women in Trading: Insights from Female Traders Using Wyckoff VSA
Health Tips for Traders: 3 Ways to Improve Your Immune System
How to Trade Smarter with Rules-Based Trading Strategies
How to Know When the Reversal is Coming in Countertrend Trading
How to Gain a Competitive Edge by Following the Smart Money
Automated Trading Tools: Identify Opportunities at the Tops & Bottoms of the Markets
The 10 Fundamentals of Choosing a Broker
4 Key Reasons to Use the Wyckoff VSA Trading Method in Your Strategy
How to Choose a FOREX Broker: 5 Things to Consider
How Tradeguider's SMART Trader Software Reduces Chart Analysis Time by 80%
VSA FOREX Strategy: How to Use Volume in the FOREX Markets
Why Wyckoff VSA (Volume Spread Analysis) is a Three-Dimensional View of the Market
When to Make the Leap from Demo Trading to Real-Life Trading
Technical Analysis of the Financial Markets - Leading or Lagging?
Market Manipulation - Fact or Fiction?

Free Access to the Tradeguider  Resource Center

Become a VSA trader now. Access everything you need to learn to trade using Wyckoff VSA: educational videos, PDF’s, eBooks and courses. No software required.