Second, the existence of a long-term stable relationship between oil prices and stock prices in GCC
countries suggests, from the perspective of investments, that oil and stock market can be considered
integrated rather segmented markets implying that expected benefits from diversification within the GCC
region by holding assets in both the oil and stock markets are decreasing. Thus, investors in the region
should search abroad for new investment opportunities in order to hold diversified portfolios. However,
global investors from developed and emerging markets can invest a part of their wealth in GCC countries if
they want to reduce the effects of oil price rises on their profitability