Mideast Stocks: Gulf markets drop as political uncertainty rises

Mideast Stocks: Gulf markets drop as political uncertainty rises

Most stock markets in the Gulf slipped on Monday amid political uncertainty in the region after Iran's president died in a helicopter crash and Saudi Arabia's crown prince postponed a trip to Japan, citing issues with the king's health.

Saudi Arabia's benchmark stock index dropped 0.6% with most of its constituents posting losses, led by IT, real estate and finance stocks. Saudi National Bank, the kingdom's largest lender, slipped 2% and Saudi Basic Industries, one of the world's biggest petrochemical companies, declined 2.3%.

The Qatari benchmark index eased 0.3%, pressured by a 1.2% drop in Qatar National Bank, the region's largest lender and a 0.5% loss in Industries Qatar. Meanwhile, Qatar recorded a budget surplus of 2 billion riyals ($548.9 million) in the first quarter of 2024, down from 19.7 billion riyals a year earlier, the finance ministry said on Sunday.

In Abu Dhabi, the benchmark index fell marginally with conglomerate International Holding Company shedding 0.4%, while emirate's largest developer, Aldar Properties climbed 3.5%.

Among other gainers, ADNOC Distribution and ADNOC Logistics rose 1.7% and 3.8%, respectively, after their parent company, oil major Abu Dhabi National Oil Company (ADNOC) said it had acquired an 11.7% stake in NextDecade's Rio Grande liquefied natural gas export facility in Texas and entered a supply agreement.

Dubai's benchmark index was little changed as gains in real estate, communications and industry offset losses in utilities, consumer discretionary and finance stocks. The blue-chip developer Emaar Properties advanced 2.3%, while National Central Cooling and Emirates NBD , the emirate's largest lender, dropped 5.4% and 0.9%, respectively.

Outside the Gulf, Egypt's blue-chip index was down 0.3% after two straight sessions of gains with Eastern Company dropping 4.8% and El Sewedy Electric falling 2.9%.

#AbuDhabi Reports 211% Surge in AUM on Influx of Money Managers - Bloomberg

Abu Dhabi Reports 211% Surge in AUM on Influx of Money Managers - Bloomberg

Abu Dhabi reported a surge in assets under management within its financial center as money managers rushed to the emirate, bolstering its image as an influential financial hub.

Total assets under management rose 211% during the first quarter from the same three-month period the year before, according to Abu Dhabi Global Market.

As many as 107 asset and fund managers including new entrants Rajiv Jain’s GQG Partners and fund administrator giant SS&C Technologies Holdings now operate from the emirate. An additional 52 entities are looking to join the fray.

Abu Dhabi is aggressively tapping into a broader shift in wealth to the capital of the United Arab Emirates, which is home to the world’s richest family and boasts sovereign wealth funds that manage more than $1 trillion. Hedge fund billionaire Ray Dalio, Czech tycoon Radovan Vitek, Egyptian magnate Nassef Sawiris and the richest man in crypto Changpeng “CZ” Zhao are among the high net worth individuals who have set up firms in the city.

Brevan Howard Asset Management, for instance, now manages more money from Abu Dhabi than it does anywhere else on the planet.

Others in the region are also trying to lure financial giants, banking on the trillions of dollars in capital that the Gulf sovereign wealth funds have, as well as the lack of income tax and a favorable time zone. Izzy Englander’s Millennium Management set up in Dubai recently and now has a staff of more than 70, while Balyasny Asset Management aims to double its 12-person workforce in the emirate.

Abu Dhabi also reported a 30% increase in operational entities to 1,950 during the first quarter, taking the headcount to 25,000. Several new firms including Vizier Asset Management Co., I Squared Capital Ltd. and Blantyre Capital have been granted in-principle approval by ADGM.

“This year holds the promise of even greater growth for ADGM and its ecosystem,” Chairman Ahmed Jasim Al Zaabi said in the statement.

Saudia Group agrees deal with Airbus for 105 aircraft | Reuters

Saudia Group agrees deal with Airbus for 105 aircraft | Reuters

Saudia Group, owner of the Saudia airline and budget carrier flyadeal, has signed a deal with Airbus (AIR.PA), opens new tab for 105 confirmed aircraft, a senior executive announced in Riyadh on Monday.

The first planes are due for delivery in the first quarter of 2026, Ibrahim Alomar, director general of Saudia Group told the Future Aviation Forum in the Saudi capital.

The deal is the largest in Saudi aviation history, he said, without specifying the value of the agreement, which is expected to be billions of dollars.

Most Gulf bourses muted in early trade | Reuters

Most Gulf bourses muted in early trade | Reuters

Gulf stock markets were mostly subdued in early trading on Monday amid political uncertainty in the region after Iran's president died in a helicopter crash and Saudi Arabia's crown prince canceled a trip to Japan, citing issues with the king's health.

Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.6% with most of its constituents posting losses, led by IT, finance and healthcare stocks.
ACWA Power (2082.SE), opens new tab slid 1.1%, and Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, dropped 1.7%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.1% with conglomerate International Holding (IHC.AD), opens new tab shedding 0.3% and Abu Dhabi Ports (ADPORTS.AD), opens new tab sliding 1.3%.

The Qatari benchmark index (.QSI), opens new tab fell 0.1%, pressured by a 1.1% drop in United Development Co (UDCD.QA), opens new tab and a 0.6% loss in Industries Qatar (IQCD.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.1%, lifted by gains in communications, real estate and industry sectors with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.1%, and Dubai Islamic Bank (DISB.DU), opens new tab adding 1.4%.

Emirates NBD(ENBD.DU), opens new tab, the emirate's largest lender, however lost 0.6%.