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With Lunate’s backing, Azura will ramp up hiring and offer more products, all aimed at boosting its assets under management which currently stand at around $5 billion, according to a statement. The firm will remain independent, with Jamal and the current management maintaining operational control.
As part of the deal, the wealth manager will also move its headquarters from Monaco to Abu Dhabi, where the city’s financial center has been locked with other regional hubs in a race to attract the world’s top financial firms and funds.
“Abu Dhabi has become a home for ultra-high net worth individuals and a hub for family offices,” Jamal said in the statement, which didn’t disclose the financial details of the transaction. “Its emergence as a leading financial center presents immense opportunities.”
Lunate’s move is the latest sign that entities from the emirate are looking to extend a global buying spree aimed at cementing Abu Dhabi’s status as a major international financial center. The $110 billion firm is majority owned by 2PointZero and the sovereign wealth fund ADQ is an anchor client.
The alternative asset manager has sealed several deals since its inception in 2023, including an investment in the glitzy Dubai office tower ICD Brookfield Place. Last year alone, Lunate made more than 50 fund commitments, co-investments and direct deals.
Established in 2019, Azura predominantly serves ultra-rich clients such as entrepreneurs and families. It’s been expanding rapidly in recent years with hires from companies including Citigroup Inc. and UBS Group AG and opening offices in major private banking markets like Geneva, London, New York, Miami, Singapore and Dubai.
The Middle East is home to several billionaire families and financial hubs like Abu Dhabi and Dubai have increasingly attracted the world’s wealthy because of its low tax environment. Global banks, in return, have been steadily adding staff in the region to serve the growing class of high net worth individuals.
Middle Eastern borrowers are flooding the primary market with a trio of dollar bond deals on Wednesday, marking one of the busiest days for regional credit and Islamic debt this year as they look to take advantage of better market conditions.
Saudi Arabia’s sovereign wealth fund known as the PIF is looking to sell $1.25 billion of seven-year dollar-denominated Islamic debt, at around 110 basis points over Treasuries, 35 basis points tighter than initially indicated, according to people familiar with the matter, who asked not to be identified. Book orders were in excess of $8.2 billion, the people said.
The flurry of Middle East sales comes after Abu Dhabi’s leading oil producer sold its first-ever Islamic bond and amid a fresh wave of broader global activity, helped by calmer markets and improved financing costs. US stocks on the S&P 500 had climbed for six straight sessions through Tuesday’s close, while benchmark Treasury yields are back down to some of the lowest levels since early April.
“Markets were volatile in the first two weeks of April. Spreads widened as US tariff policy uncertainty weighed on sentiment,” said Basel Al-Waqayan, Bloomberg Intelligence’s fixed-income strategist for the Middle East and Africa. “Now primary markets are more constructive on the back of US Treasury rates rallying back — so issuers can price competitively.”
The surge in issuance also underscores a broader rebound in Gulf credit markets after a sluggish start to the year.
Sovereign markets were active on Wednesday, with Bahrain preparing a two-part dollar sale including a 12-year conventional bond and eight-year sukuk, according to people familiar with the matter. Combined books were in excess of $6.3 billion.
Sukuk issuance has historically attracted stronger demand relative to conventional bonds, particularly as global ESG mandates and regional liquidity deepen. This week’s activity signals that issuers are moving fast to capitalize on constructive conditions — and that investor appetite for Shariah-compliant structures remains deep.
The investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull will take a minority stake in Mubadala Investment Co.’s asset management subsidiary, the second time an outside investor has been allowed to own a piece of the Abu Dhabi fund in recent months.
As part of the deal, TWG Global is committing $2.5 billion to Mubadala Capital, which, in turn, is anchoring and leading a $10 billion syndicated investment in TWG, according to a statement. That investment is part of TWG’s $15 billion equity raise, the companies said.
Mubadala Capital was set up 14 years ago as the sovereign fund’s alternative asset management arm. It manages around $30 billion in assets and, in 2017, became the first sovereign wealth fund to manage third-party capital on behalf of global institutional investors.
But TWG’s acquiring of a stake in the unit represents a rare case of a sovereign wealth fund relinquishing part ownership to an external investor. In December, Mubadala Capital added three new equity owners to its platform as part of a deal it did with the credit asset manager Silver Rock, which was the first time it allowed external shareholders into the ownership of the business.
Mubadala Capital Chief Executive Officer Hani Barhoush said the combination of “institutional expertise and capital resources” would strengthen the ability of both firms to access better investment opportunities. TWG, its partners and clients also committed to investing an additional $20 billion of capital over time to strengthen the ties between the two firms.
Sovereign wealth funds like Mubadala were set up to invest their state owner’s oil revenue surplus and help diversify the country’s economy. With $330 billion in assets, it’s the second-largest such fund after the $1 trillion Abu Dhabi Investment Authority and has in recent years deployed billions of dollars in sectors ranging from finance to entertainment and health care.
For its part, TWG has been making a push into artificial intelligence, recently striking a partnership with data-analysis software firm Palantir Technologies Inc. to expand AI commercial capabilities across financial institutions.
Mubadala has also been investing in the technology and is one of the founding partners of MGX, an Abu Dhabi-based firm that’s part of the $100 billion joint venture that’s funding AI infrastructure recently unveiled by US President Donald Trump.
TWG’s holdings also include Guggenheim Investments and prominent sports franchises such as the LA Dodgers, LA Lakers and Chelsea F.C., according to its website.
Walter, who co-founded Guggenheim Partners in 1999, has a net worth of $10.5 billion, according to the Bloomberg Billionaires Index. Guggenheim was a pioneer in raising permanent capital through insurance relationships.
Billionaire Tull cemented his fortune by selling Legendary Pictures, the production company behind films like The Hangover and The Dark Knight.
Most stock markets in the Gulf ended higher on Wednesday ahead of more corporate earnings announcements, while investors awaited a spate of U.S. economic data expected this week.
The U.S. is scheduled to report advance first-quarter GDP data at 1330 GMT (0830 ET), which is expected to show that the economy stalled or even contracted in the first quarter, swamped by a deluge of imported goods by businesses eager to avoid higher costs.
Meanwhile, U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday, while his trade team touted its first deal with a foreign trading partner.
In Abu Dhabi, the index (.FTFADGI), opens new tab reversed early losses to close 0.1% higher, helped by a 3.3% jump in the United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, extending gains for a second session.
On Tuesday, the bank reported a net profit of 5.13 billion dirhams ($1.40 billion), beating analysts' estimate of 4.24 billion dirhams, according to data compiled by LSEG.
On the other hand, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab declined 2.2% following a drop in first-quarter operating income.
Oil prices extended declines and were set for their largest monthly drop in almost three-and-a-half years as the global trade war eroded the outlook for fuel demand amid supply concerns.
Emirates Airline is very satisfied with its cash reserves, Chairman Sheikh Ahmed bin Saeed Al Maktoum said on Tuesday, adding that if the government asked him to list the company in an initial public offering (IPO), he would have to do it.
"If the government, I am appointed by the government, says do (an IPO) tomorrow, I will have to do it," he said in response to a question at a roundtable at the Arab Travel Market conference in Dubai, without giving further details.
Meanwhile, Abu Dhabi's Etihad Airways is ready for an initial public offering, but any decision to go ahead is a shareholder matter, the airline's CEO Antonoaldo Neves told Reuters on Monday.
Etihad aims to announce the launch of a $1 billion IPO, sources told Reuters in February.
Emirates expects to receive pre-ordered Boeing (BA.N), opens new tab aircraft during the second quarter of 2025, Al Maktoum also said, without giving further details.
Emirates signed orders in November 2023, for 55 additional 777-9s and 35 777-8s, raising the number of its 777-X order book to 205 units.
The Abu Dhabi Investment Authority is considering a sale of its 50% stake in plastic container business IFCO, according to people familiar with the matter.
The sovereign wealth fund is working with Bank of America Corp. and Morgan Stanley on the potential transaction, which could fetch more than €2 billion ($2.3 billion), the people said. Private equity firms and infrastructure funds may show interest in the asset, the people said, asking not to be identified as the information is private.
Buyout firm Triton, which holds the remainder of IFCO, has decided to keep its stake following a strategic review, the people said. Deliberations are ongoing and ADIA could still decide against a deal, the people said. Representatives for ADIA, Triton, Bank of America and Morgan Stanley declined to comment.
IFCO manufactures reusable containers mainly for transporting perishable products from bananas and eggs to baked goods and seafood. It’s one of the biggest such suppliers in the world, catering to more than 550 retailers in over 50 countries, its website shows. ADIA and Triton acquired the European firm in 2019 from Australian logistics provider Brambles Ltd. at a valuation of $2.5 billion including debt.
ADIA was set up in 1976 to invest the emirate’s surplus energy revenues, diversify its economy and prepare the capital of the United Arab Emirates for life after oil. It oversees about $1 trillion in assets.
Emirates Airlines isn't seeing a travel impact into the US as a result of President Donald Trump's policies, according to Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum. He joins Bloomberg's Joumanna Bercetche to discuss the company's travel and destination plans, competing in the competitive market of Dubai, and plans for Boeing and Airbus plane deliveries. (Source: Bloomberg)
Three major Abu Dhabi entities, including a sovereign wealth fund, plan to launch a stablecoin fully regulated by the central bank of the United Arab Emirates and backed by the dirham, a move that could speed the Persian Gulf nation’s efforts to adopt digital currencies and facilitate payments.
The sovereign wealth fund, ADQ along with the UAE’s largest lender, First Abu Dhabi Bank PJSC, and International Holding Co., a sprawling conglomerate, will be the founding partners of the new stablecoin, whose creation will be subject to regulatory approval.
“This stablecoin will be used as a reliable digital currency across a wide range of everyday scenarios,” according to a statement released Monday. “It will also support emerging digital use cases such as machine-to-machine and AI.”
The stablecoin will be issued by the FAB, whose chief executive, Hana Al Rostamani, said the digital currency “will make a significant impact across industries and could revolutionize the use of trusted blockchain payments for UAE consumers and businesses.”
In December, the UAE’s central bank approved AE Coin, also backed by the dirham, the Emirates’ currency. Growing popular worldwide, stablecoins are typically pegged to traditional currencies, which makes them less vulnerable to price volatility like other digital tokens, such as Bitcoin.
Most stock markets in the Gulf ended higher on Tuesday underpinned by positive corporate earnings and amid indications of easing U.S.-China trade tensions.
U.S. President Donald Trump's administration will move to reduce the impact of his automotive tariffs by alleviating some duties on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.
In a notable development, China has lifted tariffs on some U.S. imports and asked companies to specify critical goods needing exemptions, signalling Beijing's increasing unease over the trade war's consequences.
In Abu Dhabi, the index (.FTFADGI), opens new tab rose 0.6%, buoyed by a 3.1% jump in First Abu Dhabi Bank (FAB.AD), opens new tab as the United Arab Emirates' biggest lender beat first-quarter estimates.
The bank reported a net profit of 5.13 billion dirhams ($1.40 billion), beating analysts' average expectations of 4.24 billion dirhams, according to data compiled by LSEG.
On the other hand, investment firm Multiply Group (MULTIPLY.AD), opens new tab slid 3.2% after reporting a drop in first-quarter profit.
Saudi Arabia's benchmark index (.TASI), opens new tab closed 0.3% lower, hit by a 2.2% fall in Alinma Bank (1150.SE), opens new tab, after the lender reported a sequential fall in first-quarter profit.
Elsewhere, Saudi Kayan Petrochemical Company (2350.SE), opens new tab retreated 2.8%, as the petrochemical firm's quarterly losses widened.
However, Arabian Contracting Services Company (4071.SE), opens new tab surged about 10% - to become the top gainer on the index - following a steep rise in annual sales.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab inched 0.1% higher, helped by a 2.8% rise in Talaat Moustafa Group Holding (TMGH) (TMGH.CA), opens new tab, as the firm is in advanced negotiations for a new large-scale mixed-use project in Iraq.
The project is expected to produce annual recurring income exceeding $1.5 billion.
First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab, the United Arab Emirates' biggest lender by assets, beat first-quarter profit estimates on Tuesday, boosted by strong growth in non-interest income from fees and commissions.
Shares in the lender were up by 2.4% around 0610 GMT in early trading, outperforming a 0.8% rise in Abu Dhabi's benchmark index (.FTFADGI), opens new tab.
The results come as FAB undergoes a restructuring aimed at strengthening its business in the Gulf and boosting shareholder return, according to sources.
Under the reorganisation, FAB is splitting its operations into four new divisions and appointed Citi dealmaking veteran Linos Lekkas as its new head of investment banking, sources told Reuters last month.
The restructuring at FAB, headed by Hana Al Rostamani since 2021, follows a series of senior management departures including its former head of global markets and chief operating officer earlier this year.
The company, whose top shareholder is the $330 billion Abu Dhabi wealth fund Mubadala, said on Tuesday that it had reorganised its operating segments during the January-March period.
Banks in the UAE have benefited from the Gulf region's growth prospects and rising demand for credit as regional governments invest in non-oil sectors including infrastructure and tourism to diversify their economies.
Net interest income climbed 3% to 5 billion dirhams ($1.36 billion) in the quarter ended March 31, while non-interest income jumped 22% to 3.8 billion dirhams.
Fees and commissions income rose 23% in the quarter versus a year earlier.
Net profit rose 23% to 5.13 billion dirhams, beating analysts' average expectations of 4.24 billion dirhams, according to data compiled by LSEG.
The bank's total assets rose 6% to 1.31 trillion dirhams.
Abu Dhabi's Etihad Airways is not seeing any effects from the turmoil caused by U.S. President Donald Trump'stariff policies, its CEO Antonoaldo Neves told Reuters on Monday, while adding it was too early to fully gauge the impact of the levies.
Trump's announcement of sweeping tariffs on dozens of U.S. trading partners this month - and then his pausing of most of them - created widespread market uncertainty and raised fears of a global economic downturn.
Neves said Etihad had recorded strong seat occupancy levels in recent weeks despite the trade tensions, and that the volatility could even create opportunities in some instances.
He expects more Europeans, for example, to take advantage of the euro's recent gains against the dollar and the Gulf region's dollar-pegged currencies to travel.
"It means that the euro now is stronger when you compare it to the Middle Eastern currency ... So I expect to see more Europeans coming," Neves said on the sidelines of the Arabian Travel Market fair in Dubai.
Neves' comments echo Gulf airline Riyadh Air, which said earlier on Monday that global economic uncertainty had not reduced demand for travel to the Saudi capital.
If tariff-induced turmoil does impact passenger numbers, Neves said Etihad, which has a fleet of around 100 aircraft, had a contingency plan and could rely on its flexibility.
"About 60% of our planes are unencumbered, so they're all fully paid for. If I get a crisis one day, I park planes ... and save 75% of the cost," he said.
At a press conference earlier on Monday, Neves said Etihad planned to add 20 to 22 new planes this year, as it aims to expand its fleet to more than 170 planes by 2030 and boost Abu Dhabi's economic diversification strategy.
The UAE's capital is investing heavily in sectors like tourism to cut its dependence on oil revenues, and in 2023 it launched a new terminal at Zayed International Airport that tripled the hub's annual capacity to 45 million passengers.
Etihad, which is owned by Abu Dhabi's $225 billion wealth fund ADQ, has been through a multi-year restructuring and management shake-up, but has expanded under Neves.
He said that 10 of this year's new aircraft would be Airbus A321LRs, which the carrier launched on Monday and will start operating in August. The remainder include six Airbus A350s and four Boeing 787s.
Airlines in recent years have been plagued by delayed plane deliveries as manufacturers like Boeing (BA.N), opens new tab and Airbus (AIR.PA), opens new tab struggled with the pace of orders in a post-pandemic travel boom, among other issues.
Neves, who declined to give specifics on the order pipeline, said he was not happy with the delays but that they were not compromising the airline's growth plans.
Etihad is always in talks with planemakers, he said, when asked whether the carrier could be interested in acquiring some of the dozens of planes that Boeing is looking to resell after they were locked out of China due to tariffs.
Most stock markets in the Gulf ended higher on Monday as investors awaited corporate earnings announcements and amid some hopes that the worst of tariff pain is over, although confusion over U.S. trade policy lingered.
U.S. Treasury Secretary Scott Bessent on Sunday did not back President Donald Trump's assertion that tariff talks with China were underway and said he did not know if the U.S. president had talked to Chinese President Xi Jinping. Earlier, Beijing denied any talks were taking place.
The Saudi market retains the potential to climb higher, provided that upcoming earnings reports remain strong, said George Pavel, general manager at Naga.com Middle East.
"However, risks associated with trade developments and oil price volatility will remain critical factors influencing market sentiment."
Oil prices - a catalyst for the Gulf's financial markets - were stable as investors weighed up uncertainty over trade talks between the U.S. and China, clouding the outlook for global growth and fuel demand, as well as the prospect of OPEC+ raising supply.
Stock markets in the Gulf were little changed on Sunday as uncertainty surrounding U.S.-China tariff negotiations kept investors cautious, with many awaiting further corporate earnings reports.
U.S. President Donald Trump asserted in an interview published Friday that tariff negotiations were underway with China, but Beijing denied any talks were taking place, the latest in a series of conflicting signals over what progress was being made to de-escalate the trade war threatening to sap global growth.
Elsewhere, Saudi Tadawul Group (1111.SE), opens new tab - the owner of the Saudi Exchange - retreated 1.6% following a steep decline in first-quarter profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab - which traded after a session's break - gained 0.7%, led by a 0.5% rise in Commercial International Bank (COMI.CA), opens new tab.
The venture capital arm of Saudi Arabia’s sovereign wealth fund has backed a $135 million fundraising round for technology firm iMENA Holding as the company plans for an initial public offering in the kingdom.
Sanabil Investments injected capital into iMENA along with investors including New York-based VC firm FJ Labs, according to a statement on Sunday. The funding coincides with a move by iMENA to restructure into a Saudi company and base itself in Riyadh ahead of a planned listing on the local stock exchange within two years.
iMENA, established in 2012 as a platform for investing in growing online businesses, has long flagged its intention to IPO but had not previously disclosed specifics on where it intends to offer shares.
Proceeds from the capital raise will be used for pre-IPO funding, business expansion and to boost iMENA’s stakes in three of its portfolio companies: online classifieds operator Opensooq, used car marketplace SellAnyCar, and ride-hailing business Jeeny.
“This transaction marks an important inflection point for iMENA in its journey to IPO-readiness,” Nasir Alsharif, chairman of iMENA, said in the statement.
iMENA’s latest deal comes as Saudi Arabia’s stock exchange tries to attract more technology-related firms to list as part of plans to bring in more foreign investors and become a hub for fundraising. Technology businesses in the kingdom have been scaling up in recent years as investors including Sanabil pour money into the industry hoping to foster economic diversification and job creation.
Companies including Tabby, one of the Middle East’s first fintech unicorns, and technology services firm Ejada Systems, are among those preparing share sales in Saudi Arabia, people familiar have told Bloomberg.
Al Rajhi Capital, the investment banking arm of one of Saudi Arabia’s largest banks, was a financial adviser on the fundraising for iMENA, according to the statement.
Stock markets in the United Arab Emirates closed lower on Friday, in line with oil prices as oversupply concerns amid uncertainty around tariff talks between the U.S. and China dampened market sentiments.
Worries are growing about excess supply. Several OPEC+ members had suggested the group accelerate oil output for a second month in June, Reuters reported earlier this week.
Brent crude futures fell 1.07% to $65.84 a barrel by 1059 GMT.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.4% down, breaking two sessions' gains, dragged down by a decline in banking sector stocks.
However, energy infrastructure firm NMDC Energy (NMDCENR.AD), opens new tab jumped 3.8% after the firm signed an extension for its long-term agreement with Aramco.
Dubai and Abu Dhabi indices gained 2.3% and 2.2% respectively on a weekly basis - LSEG data.
Abu Dhabi's Mubadala Investment Company has entered into a $1-billion strategic partnership with New York-based Fortress Investment Group to invest in private credit, the companies said on Thursday.
Private credit has expanded in recent years, attracting investments from some of the world's largest asset managers, as stricter regulations make it more expensive for traditional lenders to finance riskier loans.
The new partnership will see the $330-billion sovereign wealth fund co-invest in Fortress' private credit, asset-based lending, and real estate strategies.
"In conversations with our partners, we increasingly hear that they want tailored and scalable investment solutions that can enhance returns across the credit spectrum," Fortress co-CEO Drew McKnight said.
"We're seeking to expand borrowers' access to capital by securing larger and more diverse pools of capital from investors," he said.
A consortium led by Mubadala Investment Company subsidiary Mubadala Capital acquired a 68% stake in Fortress last year, though the U.S. firm says it retains full autonomy over investment processes, decision-making, personnel and operations.
Fortress had $50 billion of assets under management as of 31 December on behalf of around 2,000 institutional clients.
Gulf sovereign wealth funds are expanding their footprint in the private credit space.
Mubadala has forged partnerships with the likes of Apollo Global Management (APO.N), opens new tab and Goldman Sachs (GS.N), opens new tab in recent years. And in December, it said it would buy a 42% stake in U.S. credit asset manager Silver Rock Financial.
Private credit refers to non-bank lending, typically in the form of direct loans to mid-sized companies, real estate developers, or asset-backed borrowers.
Global private credit assets under management reached roughly $1.5 trillion in early 2024 and are projected to nearly double by 2029, according to industry estimates.
Most stock markets in the Gulf ended higher on Thursday, driven by higher oil prices, corporate earnings announcements and renewed optimism about a potential U.S.-China trade agreement.
U.S. Treasury Secretary Scott Bessent said on Wednesday that the high tariffs between the U.S. and China are unsustainable, and must be reduced before trade negotiations can proceed. But he said President Donald Trump would not unilaterally cut tariffs on Chinese imports.
Meanwhile, Trump is planning to spare carmakers from some tariffs following intense lobbying by industry executives over recent weeks, a Financial Times report said.
First-quarter earnings are expected to remain a key focus for investors in the coming weeks, while the recovery in oil prices also supported market sentiment, said Joseph Dahrieh, Managing Principal at Tickmill.
In Abu Dhabi, the index (.FTFADGI), opens new tab advanced 1.1%, buoyed by a 6.7% surge in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab a day after reporting a sharp rise in first-quarter profit.
Oil prices - a catalyst for the Gulf's financial markets - recovered some losses as investors weighed a potential OPEC+ output increase against conflicting tariff signals from the White House and U.S.-Iran nuclear talks.
Dubai's main share index (.DFMGI), opens new tab, however, fell 0.2%, ending a five-session winning streak, hit by a 0.8% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
Oil prices fell almost 2% on Wednesday as sources said OPEC+ would consider accelerating its oil output increases in June, but losses were curbed following a report that U.S. President Donald Trump may cut tariffs on Chinese imports.
Brent crude futures were down $1.13, or 1.68%, at $66.31 by 12:31 p.m. EDT (1631 GMT) while U.S. West Texas Intermediate crude lost $1.21, or 1.9%, to $62.46.
Several OPEC+ members will suggest that the group accelerate oil output increases for a second consecutive month in June, three sources familiar with OPEC+ talks told Reuters.
There have been recent tensions among OPEC+ members over compliance with production quotas.
"It wouldn’t surprise me that OPEC wants to raise production. It could raise concerns about the cohesion of the cartel. Maybe they’re tired of holding back production increases," said Phil Flynn, an analyst with Price Futures Group.
Brent had traded at $68.65 a barrel earlier in the session, its highest since April 4. Both benchmarks fell more than $2 after the OPEC+ news.
Kazakhstan's new energy minister told Reuters his country will prioritise national interests over those of the OPEC+ producer group when deciding its oil output levels.
Kazakhstan has angered other OPEC+ members by producing more than its allotted quota.
U.S. crude stocks rose while gasoline and distillate inventories posted larger-than-expected draws last week, the Energy Information Administration said on Wednesday.
Crude inventories rose by 244,000 barrels to 443.1 million barrels in the week ended April 18, the EIA said, compared with analysts' expectations in a Reuters poll for a 770,000-barrel draw.
News on trade tariffs provided a floor to oil prices. The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source familiar with the matter said on Wednesday, adding that any action would not be made unilaterally.
The China tariffs are likely to come down to between 50% and 65%, according to a Wall Street Journal report, citing a White House official.
Trump has backed away from the threat of firing Federal Reserve Chair Jerome Powell after days of criticising the Fed for not cutting interest rates, easing investor fears about economic uncertainty.
The U.S. issued new sanctions targeting an Iranian shipping magnate whose network handles Iranian liquefied petroleum gas and crude oil worth hundreds of millions of dollars.
Most stock markets in the Gulf ended higher on Wednesday, after U.S. President Donald Trump said he had no plans to fire Federal Reserve Chair Jerome Powell and hinted at lower tariffs for China.
On Tuesday, Trump backed off from threats to fire Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.
The president also reiterated that he wanted a deal with China, following which tariffs would not be anywhere near 145%, and said he would set the terms of the deal if Beijing did not enter talks.
Meanwhile, the International Monetary Fund on Tuesday lowered its 2025 GDP growth forecast for Saudi Arabia, while flagging headwinds for the broader region, including a more gradual resumption of oil production.
Elsewhere, Emirates NBD Bank (ENBD.DU), opens new tab climbed 2.5%, extending gains for a third session.
In the previous session, ENBD - Dubai's top lender - reported net profit of 6.2 billion dirhams for the first quarter, beating analysts' expectations of about 5.1 billion dirhams.
Elsewhere, Emirates Integrated Telecommunications Company (du) (DU.DU), opens new tab closed 0.6% higher. The company on Tuesday announced a 2 billion-dirham ($544.5 million) hyper-scale data centre deal with Microsoft MSFT.O.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab jumped 2.6%, as most of its constituents were in positive territory including Commercial International Bank (COMI.CA), opens new tab, which was up 2.9%.
Qatar Airways is teaming up with British Airways parent IAG SA and Malaysia Aviation Group Bhd to create a joint cargo business as the airlines seek to expand their networks and streamline services at a time of growing uncertainty around global trade.
The partnership would integrate the cargo operations to offer enhanced connectivity and more route options across key freight markets, the companies said in a joint statement Tuesday. The alliance would also work on greater service flexibility, shorter transit times and new routing options to customers worldwide, tapping into the combined infrastructure of the three carriers.
The move comes as businesses look to reassess supply chains and seek strategic alliances to hedge against policy shocks in response to President Donald Trump’s reciprocal tariffs that have led to volatile trade patterns and geopolitical tensions.
Qatar Airways has 28 Boeing Co. 777 freighters, making it one of the largest cargo operators among airlines globally. The carrier also owns a 25% share of IAG.
Venture capital investment in the Middle East and North Africa surged in the first quarter as interest rate cuts boosted sentiment.
Startups in the region raised $678 million, the strongest quarter since the end of 2023, according to data platform Magnitt. The median deal size rose, reflecting an increase in the capital flowing to larger startups.
Saudi Arabia held the top spot for MENA investment and ranked first globally among emerging markets, attracting $391 million, Magnitt said. The United Arab Emirates raised about half of that.
The Middle East defied a broader slowdown in fundraising across emerging markets, thanks in part to active sovereign wealth funds and events in Riyadh and Dubai that catalyzed activity, according to Magnitt. That momentum is now under threat, it said, as US tariff policies create global uncertainty and declining oil prices threaten to weigh on investment decisions at funds like Saudi Arabia’s PIF.
“In venture capital, this uncertainty is likely to impact three areas: the deployment of capital from LPs to VCs, VC’s willingness to make decisions in uncertain times and finally, startups’ ability to raise funds,” said Philip Bahoshy, chief executive officer and founder of Magnitt.
Strong local capital and pro-startup government policies still position the region for long-term growth and tech-led sectors look poised to attract fresh capital, Bahoshy said.
Fintech funding accounted for 57% of all VC capital raised in the MENA region in the first quarter, led by Saudi Arabia-based Tabby’s $160 million funding round. The enterprise software and education technology sectors also experienced strong growth, while e-commerce and retail slowed, Magnitt said.
The Middle East and Africa also had a record number of mergers and acquisitions in the first quarter. The total regional deal count more than doubled from a year earlier to 21, Magnitt said. Egypt and the UAE led the way with nine deals each.
A list of Saudi Arabian food and beverage firms are readying new share sales in deals that will be exposed to the outlook of consumers in an economy that is grappling with the prospect of lower-for-longer oil prices.
Coffee chain Half Million and biscuit-maker Deemah are among firms speaking to banks about an IPO, according to people familiar with the matter, who asked not to be identified. Other deals in the pipeline include Barn’s coffee and Hashi Basha, which operates a chain of restaurants featuring camel meat on the menu.
Representatives for Half Million couldn’t be reached for comment, and Deemah declined to comment.
The firms’ rush to the market coincides with the kingdom’s efforts to open up its entertainment sector as part of efforts to slash its reliance on oil. That’s given residents more opportunities to fork out money on recreation, where the share of spending grew two-thirds from 2017 to 2024, according to Capital Economics.
That was reflected in the kingdom’s busy pipeline of initial public offerings last year, when listings from food and beverage firms accounted for a major chunk of new deals. Still, while companies are looking to capitalize on the momentum in Saudi consumer spending, some analysts still sounded a note of caution.
“Salaries have not gone up as much as the avenues to spend have in the past few years,” said Nishit Lakhotia, head of research at SICO Bank. Several listed grocery stores and restaurants chains have recently warned of pressure on consumer disposable income, he added.
Americana Restaurants, which operates chains including KFC, Pizza Hut and TGI Friday’s across the Middle East, said consumer demand had started to soften over the past year. The economy could come under further stress if low oil prices persist and force the government to curtail spending.
“An important contributor to the consumption growth forecasts comes from the idea of expats moving to Saudi,” according to Lakhotia. “So, if there is some level of slowdown in things like projects, this could impact future growth in consumption and spending.”
And for IPO hopefuls reliant on consumers opening up their wallets, hitting the right valuation will be key, especially given tepid debuts for some high profile regional listings in the last few months. While recent deals in Saudi Arabia have done relatively well, investors will likely be more discerning.
“With most names trading below or near IPO prices, the strength of business model and valuation is the key now,” said Sanat Sachar, a portfolio manager at Azimut Difc Ltd. in Dubai.
In the bustling Gold Souk in Dubai, dubbed the "City of Gold", 22-karat gold jewellery is a traditional favourite for weddings, religious celebrations, and as a family investment.
Yet with bullion prices hitting record highs above $3,400 an ounce, there are signs of change, as buyers look to diamonds and lighter gold jewellery, instead.
While U.S. tariffs and other factors have added fire to already hot demand for gold as an investment, the impact is different for gold jewellery, according to Andrew Naylor, head of Middle East and Public Policy at the World Gold Council (WGC).
"In markets like Dubai, this creates a two-fold effect: on one hand, you see stronger interest in gold as a safe-haven asset, on the other, high prices dampen jewellery demand."
At Dubai’s Gold Souk, retailers told Reuters they are seeing this trend, as current prices prompt shoppers to look for alternatives.
"There are no potential customers nowadays because of the gold prices," said Fahad Khan, a sales representative at retailer Damas Jewellery.
"It’s a little bit tough to afford gold, so I think it’s better to go with diamonds," said Lalita Dave, 52, as she browsed around the Gold Souk.
LAB-GROWN DIAMONDS
Dubai has been a magnet for gold buyers for at least 80 years, starting with Iranian and Indian traders, both cultures sharing a tradition of 22-karat jewellery for adornment and investment.Yet as gold prices rose 27% last year, demand for gold jewellery in the UAE fell by around 13%, outpacing an 11% drop globally, according to the WGC.
From crisis hedge to record setter: Gold hits $3,200 milestone
Jewellery demand could face further pressure across key regions in 2025 if gold prices remain elevated or volatile, the WGC said in its gold demand trends report published in February.
Price swings, more than price levels, are increasingly shaping consumer behaviour, particularly in India, it noted.
Shifts in Indian purchasing patterns often ripple through Gulf markets such as the UAE, where buyers are a key driver of sales.
Item 1 of 5 People shop for jewelry in Dubai's Gold Souq, Dubai, United Arab Emirates, April 17, 2025. REUTERS/Amr Alfiky
Goldman Sachs recently raised its end-2025 gold forecast to $3,700 per ounce and said prices could climb as high as $4,500.
"Higher gold prices are likely to dampen demand for jewellery, in a classic example of how the best cure for high prices is high prices,” said Russ Mould, investment director at AJ Bell.
UAE's gold jewelry demand softens in 2024
One sign of economising has been the rise of lab-grown diamonds.
India exported $171 million worth of lab-grown diamonds to the UAE in 2024, up almost 57% from $109 million two years earlier, data from the Gem and Jewellery Export Promotion Council showed.
India's exports of cut and polished diamonds to the UAE in the April–November 2024 were up 3.7%.
UAE ranked third in global diamond imports in 2023, trade data shows, its primary trade partners including India, South Africa, and Belgium.
While the UAE accounted for just 1.5% of the global diamond jewellery market by revenue in 2023, it is projected to grow by 5.9% annually to reach nearly $2 billion by 2030, according to Grand View Research.
That outpaces the global growth forecast of 4.5% and makes the UAE the fastest growing market in the Middle East and Africa.
TRADE TENSIONS
One impact from recent trade tensions with the U.S. has been accelerated talk about finding alternative markets and production hubs, two executives at major Indian diamond exporters told Reuters.
If tensions persist, potentially spanning years, one of the sources speaking to Reuters on condition of anonymity said his company's contingency plans included shifting some Indian production overseas, including to the UAE.
Shamlal Ahamed, managing director of international operations at retailer Malabar Gold & Diamonds, told Reuters the rise in lab-grown diamond jewellery sales in the UAE appeared to be driven more by design preferences than pricing and he remained bullish on gold jewellery demand.
"While price-conscious buyers may wait for a dip, our experience shows that such declines are often short-lived, with buyers quickly adapting to new price levels."
