Most Gulf markets ease amid regional tensions | Reuters

Most Gulf markets ease amid regional tensions | Reuters

Most stock markets in the Gulf were subdued on Wednesday, with geopolitical tensions in the region taking center stage, although the Egyptian bourse bucked the trend to close higher.

An escalation of fighting in Lebanon and the ongoing one-year-old war between Israel and Hamas in Gaza has raised fears of a wider Middle East conflict.

Rocket sirens sounded constantly across northern Israel on Wednesday, including in the major port city of Haifa, following heavy fire from Lebanon. Israel's military said about 40 projectiles were launched in one barrage at Haifa, some of which were intercepted while others fell in the area.

The downturn in Gulf markets began after Iran launched a missile barrage on Israel on Oct. 1. Israel has sworn to retaliate and is weighing its options, with Iran's oil facilities considered a possible target.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.8%, weighed down by a 1.1% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 2% decline in Al Rajhi Bank (1120.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab was down 0.4%.

Oil prices - a catalyst for the Gulf's financial markets - erased early gains as weak demand fundamentals and rising supply countered the elevated risk of supply disruption from conflict in the Middle East and Hurricane Milton in the United States.

Dubai's main share index (.DFMGI), opens new tab eased 0.2%, with top lender Emirates NBD (ENBD.DU), opens new tab losing 1%.

In Abu Dhabi, the index (.FTFADGI), opens new tab edged 0.3% higher.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.1%, as most of its constituents were in positive territory, including Talaat Mostafa Holding (TMGH.CA), opens new tab, which was up 2.9%.

#UAE Latest: Wall Street’s Gulf Boom Faces Risks From Iran-Israel Tensions - Bloomberg

UAE Latest: Wall Street’s Gulf Boom Faces Risks From Iran-Israel Tensions - Bloomberg

Wall Street giants have been flocking to the Middle East for a slice of the region’s vast oil wealth, but escalating tensions between Iran and Israel are throwing up new uncertainties.

In recent years, the United Arab Emirates and Saudi Arabia have pushed for regional peace and spent billions from their vast oil revenues to expand their economies. They’ve become more important than ever to the world of finance and business, using a $3 trillion pile of sovereign wealth to bankroll global deals and attract the biggest hedge funds and banks.

But the hubs of Abu Dhabi, Doha, Riyadh and Dubai sit just across the Strait of Hormuz from Iran, which last week attacked Israel with nearly 200 missiles. Images on social media showed the glow that lit up the Gulf’s night sky as the missiles took off.

That was one of the starkest reminders yet of the risks facing these cities. While they’ve remained insulated from the war between Israel and Hamas that began last year, governments are now contending with a conflict drawing closer to their shores.

As long-time allies of Washington, several Gulf countries are home to American military bases. While the region has seen conflict previously, for the most part this played out through Iran-backed proxies in Yemen, Lebanon, Syria and Iraq. Now — amid pledges from Israeli officials of a ‘significant’ response to Iran’s attack — there’s the threat of a direct war that could drag in the US.

Just how rich are Arab rulers?

Just how rich are Arab rulers?

It’s no secret that Gulf autocrats control serious cheddar. A (paywalled) report out this month attempts to estimate quite how much. 

Totting up the available numbers, Global SWF reckon the Gulf Cooperation Council’s ruling families control around $6.8 trillion of assets. That’s two whole Apples!

What do these funds even do with $6.8 trillion? It turns out, at least four things. 

First, they diversify their economies beyond the expected life of the reservoir of hydrocarbons upon which the region floats. 

Second, they project soft power internationally. Think football, golf, media, universities, maybe even the capture of international professional elites through butlering gigs. 

Third, buy garish bling and stroke rulers’ giant egos.

Lastly, they own pretty much everything in touching distance. According to the report, Gulf SWFs own every one of their national champions across every major industry.