The new Gulf sovereign wealth fund boom | Financial Times

The new Gulf sovereign wealth fund boom | Financial Times

The football World Cup in Qatar was not the only show drawing attention to the oil-rich Gulf in recent weeks. In Abu Dhabi, an annual finance conference was so packed that attendees were left with standing room only as the region is increasingly viewed as one of the remaining sources of abundant capital. 

When sessions ended, bankers and investors squeezed through corridors pitching deals on the hoof. “It was so busy, it felt like the whole island sank a little,” one Abu Dhabi official quipped to a banker present. 

There were similar scenes in neighbouring Saudi Arabia, where the kingdom’s so-called “Davos in the Desert” investor conference drew record numbers with more than 1,000 “global executives” attending, including about 400 from the US and scores from Europe. 

For many of those beating a path to the Gulf there is one thing on their minds — luring capital from, and striking deals with, sovereign wealth funds as the region enjoys its first petrodollar-fuelled boom in a decade. 

“You have the world and his wife coming here looking for capital,” says a veteran Gulf-based banker. “It feels like 2008.”

Mideast Stocks: Gulf stocks slide on weaker oil and PMI data

Mideast Stocks: Gulf stocks slide on weaker oil and PMI data

Major Gulf stock markets ended the New Year rally on Wednesday, with Saudi Arabia falling the most as worries about a global economic downturn and weaker oil prices sapped risk appetite.

Growth in the non-oil private sector in the United Arab Emirates slowed in December. The seasonally adjusted S&P Global UAE Purchasing Managers' Index fell to 54.2 in December from 54.4 in November, while the seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index fell to 56.9 in December from 58.5 in November.

Oil price, which fuels the region's growth, fell sharply on Wednesday after slumping in the previous session. Daniel Takieddine, CEO MENA at BDSwiss, said weaker demand for oil could be the centre of attention as China struggles with COVID restrictions while manufacturing activities in the United States and China continue to decline at a steady pace.

Saudi Arabia's benchmark stock index fell 1.2% to end a three-day rally, with Retal Urban Development Company shedding 1.9% and Al Rajhi Bank declining 1.4%. State oil giant Saudi Aramco was down 1.6%. Aramco may cut the official selling price for the medium sour grade by about $1.50 a barrel in February, dragging the February Arab Light price to a level last seen in November 2021.

Abu Dhabi's index retreated 0.1%, pressured by a 0.5% decline in the country's largest lender First Abu Dhabi Bank. The benchmark stock index of Qatar, among the world's top exporters of liquefied natural gas, declined 0.6%, led by financial and industrial stocks. Commercial Bank dived 3.5% and petrochemical maker Industries Qatar was down 1.3%.

Dubai's index, however, ended flat. Emirates NBD Bank rose 1.2% after Dubai's largest lender mandated banks to arrange a three-year fixed rate UAE dirham-denominated bond. Blue-chip developer Emaar Properties was down 0.6%.

Outside the Gulf, Egypt's blue-chip index climbed 3.3%, extending gains to a fifth session, as 25 of the 30 constituent stocks moved in positive territory.

The Egyptian pound weakened to 26.49 to the dollar, marking its biggest one-day move since the central bank allowed it to fall by 14.5% on Oct. 27, according to Refinitiv Data.

#UAE non-oil private sector growth eases further in December -PMI | Reuters

UAE non-oil private sector growth eases further in December -PMI | Reuters

Growth in the non-oil private sector in the United Arab Emirates slowed for a second consecutive month in December, while output growth slid to a 15-month low, a survey showed on Wednesday.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) fell to 54.2 in December from 54.4 in November, in line with the series average.

"The slowdown reflected downward movements in three of the PMI's largest components, with output and new business growth both easing to 15-month lows, whilst employment rose at the softest rate in eight months," said David Owen, economist at S&P Global Market Intelligence.

"While domestic demand conditions are holding up relatively strong, weakness in the global economy led to a first decrease in new export business since August 2021."

#Dubai Rolls Out $8.7 Trillion Economic Plan for Next Decade - Bloomberg

Dubai Rolls Out $8.7 Trillion Economic Plan for Next Decade - Bloomberg

Dubai set out a 32 trillion-dirham ($8.7 trillion) economic plan on Wednesday that includes doubling foreign trade and investment over the next decade to boost its standing as a global financial hub.

The emirate, part of the United Arab Emirates’ federation, is the Middle East’s business and finance center. It’s already been deepening trade routes and working to attract global firms as it faces growing regional competition.

Foreign trade is targeted to reach 25.6 trillion dirhams by 2033 as the city adds to its global partners. Dubai is also seeking to attract foreign direct investment of around 60 billion dirhams annually, Dubai ruler Sheikh Mohammed bin Rashid tweeted.

Dubai’s economy continued its post-pandemic recovery 2022 and grew an annual 4.6% in the first nine months of last year. But its plan for longer-term growth comes as economists forecast a grim global outlook. The International Monetary Fund expects one third of the world economy to be in recession this year with the US, Europe and China all slowing down simultaneously.

Most Gulf markets open higher despite weaker oil prices | Reuters

Most Gulf markets open higher despite weaker oil prices | Reuters

Most Gulf stock markets opened firmer on Wednesday as investors brushed aside global oil demand concerns and waited for minutes from the U.S. Federal Reserve's most recent meeting to gauge the path forward for interest rates.

Prices of oil, a key driver for the Gulf financial markets, fell on concerns about weak fuel demand due to the state of the global economy and rising COVID cases in China.

Saudi Arabia's benchmark stock index (.TASI) rose 0.1%, extending gains to a fourth session. Saudi National Bank (1180.SE), the country's largest lender, gained 0.8% and Saudi Arabian Mining Co (1211.SE) climbed 1.3%.

After oil, gas and petrochemicals, mining is a key part of the economic diversification and part of Saudi Vision 2030, and Saudi Arabia is estimated to have about $1.3 trillion in mineral reserves. Saudi will also host the 2023 edition of the Future Minerals Forum from Jan. 10 to 12 in Riyadh.

Abu Dhabi's main share index (.FTFADGI) advanced 0.2% and was on course for a third straight session of gains, led by a 1% rise in Abu Dhabi Ports Group (ADPORTS.AD) and a 1.1% increase in developer Aldar Properties (ALDAR.AD).

Dubai's main share index (.DFMGI) advanced 0.2%, supported by a 2.3% gain in low-cost airline Air Arabia (AIRA.DU).

The benchmark stock index (.QSI) in Qatar, among the world's top exporters of liquefied natural gas, dropped 0.3%, pressured by banking stocks. Qatar Islamic Bank (QISB.QA) fell 0.9%, while Commercial Bank (COMB.QA) was down 1.6%.