Things are not turning better for GCC markets due to political and market uncertainty in the region, states a report by the Kuwait Investment House 'Markaz'.

While global markets have been showing the signs of recovery and are expected to perform better during the year, the UAE markets have been reeling under pressure with the MSCI GCC dropped nearly 2 percent in December 2009.

UAE markets declined 8 per cent in December and likely to take new shape after the completion of Dubai World Restructuring. However, Saudi Arabia remained top gainer for the year reporting an increase of 27 percent in December by pushing total 2009 gain to 22 per cent. But performance is significantly lower than emerging markets that surged 4 per cent in December and 74 per cent in 2009.

Periodic financial jerks due to global financial crisis and Dubai World's Crisis, according to Markaz report, refrained investors for making more investments due to overall decline in business confidence.

M R Raghu, head of research at Markaz said, "The events of 2008/2009 have laid bare the GCC's frailties in the arenas which support market recovery, such as adequate corporate governance, regulatory structure, transparency, etc."