#Saudi bourse leads most Gulf stocks lower as oil prices fall | Reuters

Saudi bourse leads most Gulf stocks lower as oil prices fall | Reuters

Major Gulf stock markets fell on Sunday on weaker oil prices and profit-taking, with sentiment further pressured by concerns over a global supply glut and escalating tension between the U.S. and Venezuela following the seizure of a tanker.

Oil prices – a key driver for Gulf financial markets – settled lower on Friday, posting a 4% weekly decline as oversupply and hopes for a potential Russia-Ukraine peace deal outweighed worries over any impact from the U.S. seizure of an oil tanker off Venezuela's coast.

Saudi Arabia's benchmark index (.TASI), opens new tab fell for a second straight session, losing 1.2%, with all sectors in negative territory, led by industry, finance and communications. Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, dropped 1.3%, while Saudi Basic Industries Corp (2010.SE), opens new tab retreated 1.2%.

Separately, Oman's state energy group OQ is in talks with new potential partners for its planned petrochemical complex in Duqm after SABIC withdrew, Chief Executive Ashraf Al Mamari said.

"The market is under pressure from a combination of weaker oil expectations and liquidity dynamics," Joseph Dahrieh, managing principal at brokerage firm Tickmill, said in a note.

"Lower oil feeds directly into fiscal repricing. Saudi Arabia's FY2026 budget projects a deficit of roughly 165 billion riyals, and investors have become more sensitive to any signs of prioritisation or pacing in Vision 2030 spending," he added.

The Qatari benchmark index (.QSI), opens new tab snapped four consecutive sessions of gains to end 0.4% lower, with all its constituents in the red. Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, slipped 0.8%, and Industries Qatar (IQCD.QA), opens new tab fell 0.8%.

Outside the Gulf, Egypt’s blue-chip index (.EGX30), opens new tab edged up 0.1%, helped by a 15.3% advance in Raya Holding (RAYA.CA), opens new tab and a 2.1% rise in Telecom Egypt (ETEL.CA), opens new tab. The telecoms operator forecast on Wednesday high-single-digit revenue growth and an EBITDA margin in the low 40s in its 2026 guidance.

Hedge fund Mason Capital seeks to resolve legal dispute over US gas driller - #AbuDhabi

Hedge fund Mason Capital seeks to resolve legal dispute over US gas driller

A hedge fund has offered to buy a large gas driller at the centre of a legal dispute in which a Middle Eastern sovereign wealth fund accused a US private equity group of self-dealing.

Mason Capital has offered to buy Ascent Resources in a potential multibillion-dollar takeover that would sidestep the company’s controversial sale between two funds managed by its private equity backer, Energy & Minerals Group. Ascent Resources is one of the largest privately held natural gas drillers in North America. 

Earlier this month, the Abu Dhabi Investment Council sovereign wealth fund sued Energy & Minerals Group to block the Houston-based private equity fund from selling its more-than 30 per cent stake in the driller between two funds it manages. 

The sovereign fund accused EMG of selling Ascent using a so-called continuation fund in a deal that would short-change investors, but create a financial windfall for EMG. 

Abu Dhabi Investment Council also argued that EMG had sought to coerce investors to support the fund-to-fund transfer by minimising Ascent’s prospects of being sold to an outside buyer or go public. EMG agreed to halt the transaction while the battle is arbitrated in a Delaware court. 

Mason Capital, a $2bn fund that makes distressed investments and long/short equity trades, is an existing investor in Ascent Resources after having built a stake in the driller through its 2018 bankruptcy. 

It is now using its preliminary offer to force EMG to initiate a full sale process. The New York hedge fund says it is willing to pay a premium to the valuation of EMG’s mooted fund-to-fund deal and make its purchase without any deferrals. 

“Mason Capital is prepared to evaluate and, if supported by a proper governance process and customary confirmatory diligence, deliver a fully financed, all-cash proposal to acquire all outstanding units . . . at a price superior to that contemplated by the EMG transactions,” it said in a letter sent to Ascent’s board of directors obtained by the Financial Times. 

In the letter, Mason also said it hoped Ascent would initiate a formal sale process that included a 45-day period in which its board would seek higher alternatives to the hedge fund’s potential offer, “thereby ensuring that the company pursues the most value-maximising path for all members”. 

Mason Capital declined to comment. Abu Dhabi’s fund declined to comment on matters subject to ongoing litigation. Ascent Resources did not immediately respond to a message seeking comment.

#UAE stocks ease as oil slips, profit-taking caps #Dubai rally | Reuters

UAE stocks ease as oil slips, profit-taking caps Dubai rally | Reuters

Stock markets in the United Arab Emirates were subdued on Friday as weaker oil prices and profit-taking offset recent gains, with sentiment also tempered by concerns over a global supply glut and geopolitical developments.

Oil prices - a catalyst for the Gulf's financial markets - inched lower with Brent crude down 0.25% at $61.17 a barrel at 1230 GMT.

The International Energy Agency on Thursday trimmed its forecast for next year's global oil surplus for the first time since May, citing stronger demand prospects, while OPEC left its 2026 global oil demand growth outlook unchanged in its monthly report.

Dubai's benchmark index (.DFMGI), opens new tab fell marginally after nine straight sessions of gains, with declines in communications, consumer staples and industrial stocks outweighing advances in financials, utilities and real estate. The index still notched its third consecutive weekly rise.

Emirates NBD (ENBD.DU), opens new tab, Dubai's largest lender, gained 1.6% and Mashreqbank (MASB.DU), opens new tab rose 2.1%, while Gulf Navigation (GNAV.DU), opens new tab and Union Properties (UPRO.DU), opens new tab fell 9.8% and 2.1%, respectively.

In Abu Dhabi, the index (.FTFADGI), opens new tab slipped 0.2%, pressured by healthcare, real estate and telecom shares. Blue-chip developer Aldar Properties (ALDAR.AD), opens new tab lost 1.2% and Abu Dhabi Commercial Bank(ADCB.AD), opens new tab declined 2.1%.

Dana Gas (DANA.AD), opens new tab jumped 6% after the company reported a new gas discovery in Egypt's onshore Nile Delta, following the successful drilling of the North El-Basant-1 exploration well.

"Markets edged slightly lower due to profit-taking after a strong rebound over the last two weeks," said Ahmed Negm, head of market research for MENA at XS.com.

"Looking ahead, lower oil prices and a bearish outlook for 2026 remain risks that could cap future gains," he added.

Exclusive: #Oman's OQ in talks with partners for Duqm petrochem project as SABIC withdraws | Reuters

Exclusive: Oman's OQ in talks with partners for Duqm petrochem project as SABIC withdraws | Reuters

Oman's state energy group OQ is in talks with new potential partners for its planned petrochemical complex in Duqm after Saudi Arabia's SABIC withdrew, said OQ CEO Ashraf Al Mamari.

SABIC decided "to withdraw from the project, so now it is us and the Kuwaiti side," Mamari told Reuters in an interview, without giving details on the reason for the decision.

SABIC (2010.SE), opens new tab, whose withdrawal from the project in Oman has not been previously reported, had no immediate comment.

Duqm port on Oman's southwest coast is close to its major oil and gas projects, where OQ and Kuwait Petroleum International last year inaugurated a $9 billion refinery called OQ8, with plans for a petrochemical project close by.

"Currently it's on a 50-50 (shareholding) basis and in parallel, we are discussing with some partners if they would be interested in joining as a third partner," Mamari said without giving any names.

"We are discussing with both technology solutions providers and partners or even financial partners. When it comes to the equity share and split, we did not decide that yet, which will depend on the progress of the project," he said.

SABIC is restructuring as the chemicals industry faces with weak demand. It is 70% owned by oil giant Aramco (2222.SE), opens new tab, which is cutting costs and selling assets as it balances capital expenditure with lower oil prices and shareholder payouts.

OQ is owned by Oman's sovereign wealth fund and has a portfolio of companies ranging from exploration and production to refining, chemicals, trading, hydrogen and renewables.

Mamari said it is also in early talks with foreign investors, including U.S. and Asian firms, about potential partnerships and equity investments in some of its "key projects", citing higher investor confidence as the country's and OQ's credit ratings have improved in recent years.

Oman, a small non-OPEC oil producer, is following other Gulf countries in economic diversification efforts, including with a privatisation drive to attract foreign investors.

That, along with fiscal reforms, has helped the Sultanate pay down debt and turn its large fiscal deficit into a surplus since 2022. Credit rating agency Fitch upgraded it to investment grade this week.

OQ, which in recent years listed some of its units including its exploration and production business OQEP (OQEP.OM), opens new tab, is assessing floating up to two more in 2026, Mamari said.

Hedge Fund Debuts Backed by Foreign Cash Sprout Up Across #UAE - Bloomberg

Hedge Fund Debuts Backed by Foreign Cash Sprout Up Across UAE - Bloomberg

Dubai and Abu Dhabi — where some of the world’s biggest hedge funds have set up outposts in recent years — are now emerging as hubs for money managers looking to go it alone.

And even though they’re setting up shop in the United Arab Emirates, a nation with trillions of dollars of sovereign wealth, some of the most successful debuts are getting their initial backing from firms in the US and Europe.

At least five portfolio managers from top hedge funds are launching entities in the Middle East hub. The three largest are backed by Brummer & Partners, Schonfeld Strategic Advisors and Morgan Stanley.

Nikolay Aleksandrov won a roughly $500 million investment from Morgan Stanley’s asset-management arm for his new quant fund, Continuum Capital Management, according to people familiar with the matter. The portfolio manager, who previously worked at ExodusPoint Capital Management and Millennium Management, will invest exclusively for Morgan Stanley.

Nikolaus Hildebrand, who worked at Brevan Howard Asset Management and ExodusPoint, joined Brummer and is launching a trading pod, other people said, asking not to be identified because the information is private. He will manage the new Brummer Fixed Income fund, which is starting with an allocation of roughly $500 million from the firm and raised about $600 million from outside investors, the people said. It started trading last month.

Earlier this year, Omar Newera secured $500 million from Schonfeld for his Abu Dhabi-based stock-picking fund, Insight Capital Management. Initially, his firm will trade exclusively for Schonfeld.

The moves show that the UAE is becoming an attractive destination for startup managers looking to live, hire, raise money and build out trading firms. While some, including Aleksandrov, were already living in the country, others like Hildebrand moved to the UAE to launch their funds in a nation that offers a tax-free, luxurious lifestyle and the ability to trade across multiple time zones.

The UAE, which hosted just a few hedge funds a decade ago, is now one of the hottest locations for the industry, with almost all giant multistrategy firms opening offices in Dubai or Abu Dhabi. Now, rather than choosing between the two cities, some are beginning to open locations in both. Dubai appeals to younger employees seeking city lifestyles and is home to family offices that control more than $1 trillion. Abu Dhabi, whose government encourages firms to establish a presence there, offers the most fundraising potential.

Still, snagging coveted backing from the UAE’s giant sovereign wealth funds is challenging: They’re known for having less tolerance for risk, taking longer to invest and setting a high bar before deploying capital. But the biggest among them, the $1 trillion Abu Dhabi Investment Authority, already backs some of the world’s largest hedge funds and has been stepping up its use of separately managed accounts to invest in others.

“You need to have large track records to get the attention of the sovereigns,” said Richard Fenton, head of Middle East prime sales at IG Prime. “You need to go to them with something they haven’t seen before in order to compete, otherwise they’ll continue allocating with the established managers.”

Claus Rosenberg Gotthard and Martin Rasmussen chose Abu Dhabi to start Dovehouse Capital, their new multistrategy hedge fund. Gotthard is moving to the UAE from Portugal, while Rasmussen travels from Italy every two weeks.

William Isvy moved to Abu Dhabi from the UK to start an equity hedge fund that’s expected to debut next year, people said. He was previously a portfolio manager at SPX Capital and Millennium.

Another Millennium alumnus, Adel Habre, is still deciding whether Dubai or London will be the home for his new hedge fund, QuantD Capital, some of the people said. The firm will trade rates and currencies and is expected to launch in the second half of next year.

Portfolio managers from multistrats are expected to “establish their own funds and draw investments from local UAE family offices who are looking to diversify their investment strategies,” Fenton said. “It’ll grow the ecosystem here as it’s done in New York and London, and we are starting to see the beginnings of this now.”

France’s Ardian Set to Join Global Firms Planning #Kuwait Offices - Bloomberg

France’s Ardian Set to Join Global Firms Planning Kuwait Offices - Bloomberg

French private equity firm Ardian plans to open an office in Kuwait, according to people familiar with the matter, joining a growing cohort of global financial companies in establishing a presence in the Gulf state as it looks to position itself as a regional business hub.

The office, slated to open in 2026, is expected to serve as a gateway to Europe for Kuwaiti investors, the people said, asking not to be named discussing information that isn’t public. Ardian, which manages about $196 billion, would be the first major European private equity manager to set up in Kuwait.

The plans come weeks after Wafra Inc., a $28 billion money manager owned by the state pension agency of Kuwait, purchased a minority stake in Ardian. In late October, Bloomberg News reported that the pension fund — Public Institution for Social Security — was restarting private equity allocations after a hiatus, potentially unleashing billions of dollars in fresh capital into the industry.

A representative for Ardian declined to comment.

Global firms have been expanding across the Middle East, drawn by the region’s sovereign wealth funds and rich families that together control more than $1 trillion in assets. Much of that activity has centered on Saudi Arabia and the United Arab Emirates, though Kuwait has begun to attract several high-profile entrants in recent months.

BlackRock Inc. opened a branch in the country in September, followed shortly by Goldman Sachs Group Inc. and Franklin Templeton. Buyout giant Carlyle Group Inc. and State Street Corp. are also looking to establish local offices, Bloomberg News has reported.

Private equity firms have been grappling for years with a tough market for asset sales, making it harder to sell portfolio companies at acceptable valuations and dragging out the process of paying investors.

In May, the head of the $1 trillion Kuwait Investment Authority warned the industry was “very troubled,” citing practices such as continuation vehicles that can delay cash distributions to limited partners.

There are signs the logjam is beginning to ease. Goldman’s finance chief said this week that the frozen pipelines of private equity dealmaking are starting to thaw, with sponsor-led activity picking up and announced deal volumes up 40% this year.

Founded in 1996, Ardian now invests across private equity, real assets and private credit. It has around 20 offices worldwide, including one opened in Abu Dhabi in 2023. The firm manages over $27 billion for Middle Eastern clients and raised a record $30 billion this year for a secondaries fund, topping the $19 billion raised for its predecessor.

#SaudiArabia Stocks’ Worst Year in a Decade Leaves Traders Grim on 2026 - Bloomberg

Saudi Arabia Stocks’ Worst Year in a Decade Leaves Traders Grim on 2026 - Bloomberg

In a year that saw emerging-market equities roar back to life, Saudi Arabia stocks were left far behind. Investors say don’t count on next year to be much different.

They see little reason to buy Saudi stocks, with oil prices in the doldrums and likely to keep falling next year with commodities trader Trafigura predicting a “super glut.” Citigroup Inc. analysts recommend investors underweight Saudi stocks and say the shares have “screened poorly” on earnings growth and momentum.

“Saudi stocks remain rather unappealing,” said Nenad Dinic, an EM equity strategist at Bank Julius Baer & Co. “First, the Saudi stock market is still closely tied to oil prices that could stay soft in 2026; second, it doesn’t get a boost from a weakening dollar as most other EM plays do.”

The dismal outlook comes on top of this year’s 11% selloff in the Tadawul All Share Index, the biggest drop since 2015. Earnings growth is also expected to be sluggish, with analysts predicting a 2% increase in profit next year, compared with 13% growth for the MSCI benchmark.

The world’s biggest oil producer is pressured by a 17% drop in Brent crude prices, which restrains public spending along with company earnings. Furthermore, its stocks have proved sensitive to unfavorable trends in the dollar this year, Citi analysts David Groman and Rahul Bajaj said.

“There is a lack of short term trigger with potential to drive Saudi equities higher,” said Sebastian Kahlfeld, a portfolio manager at DWS Investment GmbH. While valuations have become more attractive, the improvement isn’t “sufficient to drive a significant re-rating,” he said.

The Tadawul All Share Index currently trades around 15 times expected earnings, below its 10-year average of about 16 times but still higher than stocks in the benchmark EM index as well as regional hub Dubai.

Not everyone is bearish. Junaid Ansari, head of research and strategy at Kamco Investment Co., said the Saudi market remains “oversold with an overstated concern” about oil. He sees upside in bank shares amid higher lending and profits.

Amundi SA, Europe’s biggest asset manager, expects the Kingdom’s stocks to largely track the oil market over the near-term unless it delivers on plans to remove foreign ownership curbs on equities.

This “might provide a catalyst, especially for stocks with the biggest free float, such as financials,” said Marcin Fiejka, head of equities for central and eastern Europe, the Middle East and Africa at the firm. He doesn’t expect the changes to occur during the first half of 2026.

Saudi equities rallied in September after Bloomberg reported that the Kingdom may soon ease foreign limits. The gains faded after a regulator said that policymakers haven’t yet decided whether to eliminate the cap or lift it slowly in their 2026 review.

Adnan El-Araby, an investment manager at Barings Investment Services Ltd., also has an underweight stance on Saudi stocks, which he said have experienced earnings downgrades triggered by both macro and micro variables. “Less consistent” communication on when and how the country planned to open up its market hasn’t helped either, he said.

“We haven’t increased our exposure to Saudi ahead of 2026,” El-Araby said. “Our portfolio construction will be driven by the earnings outlook of specific companies.”

Paramount’s Mideast Backing Likely Runs Deeper Than $24 Billion - Bloomberg

Paramount’s Mideast Backing Likely Runs Deeper Than $24 Billion - Bloomberg

A trio of Middle Eastern funds have agreed to stump up $24 billion to help bankroll Paramount Skydance Corp.’s bid for Warner Bros. Discovery Inc. The region’s exposure to the deal is likely larger, once its deep ties to private equity firms behind the bid are factored in.

Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority joined the relatively-unknown Abu Dhabi firm L’imad Holding Co. to bankroll the hostile offer earlier this week. The funds are overseen by wealthy Gulf states that have long supplied large amounts of capital to global buyout firms.

One example is Apollo Global Management Inc., which is among firms providing as much as $54 billion of financing for the Paramount offer. Abu Dhabi’s Mubadala Investment Co. has a long-standing relationship with Apollo, and the PIF’s venture arm has invested in funds run by the US firm.

The Saudi wealth fund, alongside the QIA and Abu Dhabi’s Lunate, has also steered billions of dollars into Affinity Partners. Jared Kushner’s firm has ties to Mubadala too, after jointly investing in a Brazil-based fast-food firm alongside a unit of the Emirati entity.

Their play for Warner Bros. comes just months after the PIF partnered with Affinity on another eye-catching bid, a $55 billion buyout of Electronic Arts Inc. Kushner connected the two sides, and played a central role in the talks, Bloomberg News reported at that time.

This time around, prominent figures involved also include Larry Ellison, the billionaire with close ties to the region. The Gulf investors plan to provide capital through non-voting equity investments and have agreed to forgo any governance rights, which would help ensure bid wouldn’t need approval from the Committee on Foreign Investment in the US.

The Middle East’s latest attempt reinforces a years-long trend that’s seen regional entities emerge as bankers to the world. Collectively, five wealth funds controlled by Abu Dhabi, Qatar and Saudi Arabia deployed $82 billion last year, accounting for more than 60% of all sovereign wealth fund investments, according to Global SWF.

That cash has propped up transactions across sectors ranging from finance to artificial intelligence as governments seek to build new engines of growth beyond oil.

An acquisition of Warner Bros. will add another element: extending soft power. If the transaction materializes, Middle Eastern investors could gain a stake in marquee assets including Warner Bros. TV and film studios, the HBO business and cable channels, including CNN.

That prospect ultimately brought funds from the United Arab Emirates, Saudi Arabia and Qatar together on one transaction for the first time in years. The countries control just over $3 trillion in sovereign wealth, and deals involving all three are unusual.

“This means that either the deal is too good to pass, or there is a third party — say Affinity Partners — putting them together,” said Diego Lopez, founder and managing director at Global SWF, which tracks wealth funds.

UAE-EU free trade talks advancing rapidly, #UAE state minister says | Reuters

UAE-EU free trade talks advancing rapidly, UAE state minister says | Reuters

Free trade talks between the United Arab Emirates and the European Union are advancing rapidly, UAE state minister Lana Nusseibeh said on Thursday at a briefing with an EU commissioner.

The EU and the UAE launched the talks earlier this year, focusing on trade in goods, services, investment and deepening cooperation in strategic sectors, including renewable energy, green hydrogen and critical raw materials, the EU said in April.

The fourth round of talks is scheduled to take place in the UAE this week and a fifth round is scheduled for early next year, according to Nusseibeh.

"We're having very productive conversations," she said.

The EU is the UAE's second-largest trading partner, accounting for 8.3% of UAE's total non-oil trade.

The wealthy Gulf state is also the EU’s largest export destination and investment partner in the Middle East and North Africa, according to the UAE state news agency.

Most Gulf markets gain as Fed lowers rate | Reuters

Most Gulf markets gain as Fed lowers rate | Reuters

Most Gulf stock markets ended higher on Thursday after the U.S. Federal Reserve's interest rate cut, but gains were capped by the central bank's cautious tone on policy trajectory.

The Fed's latest projections, released after the two-day policy meeting, indicated that the median official still expects only one 25-basis-point rate cut in 2026, unchanged from the September forecast.

Policymakers continue to balance evidence of a softening labour market with concerns of persistent inflation.

Adding to the uncertainty, the recent prolonged U.S. government shutdown has disrupted data releases, pushing the critical November jobs report to December 16 and the latest inflation numbers to December 18.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Gulf central banks cut key interest rates by 25 basis points on Wednesday, mirroring the move by the Fed.

Dubai's main share index (.DFMGI), opens new tab gained 0.4%, helped by a 2.6% rise in top lender Emirates NBD (ENBD.DU), opens new tab.

The market remains backed by solid fundamentals and a strong growth rate, which could be further bolstered by the recent interest rate cut, said Milad Azar, market analyst at XTB MENA.

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

The Qatari benchmark (.QSI), opens new tab advanced 0.9%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab rising 1.6%.

Saudi Arabia's benchmark index (.TASI), opens new tab, however, eased 0.1%, hit by a 1.7% fall in major oil producer Saudi Aramco (2222.SE), opens new tab.

Oil prices fell on Thursday as investors shifted focus back to Russia-Ukraine peace talks and monitored potential fallout from a U.S. seizure of a sanctioned oil tanker off the coast of Venezuela.

Crude prices are hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.1%.

#AbuDhabi Al Nahyan Royals Approved for Vast London West End Office - Bloomberg

Abu Dhabi Al Nahyan Royals Approved for Vast London West End Office - Bloomberg

Westminster City Council has approved plans by a company ultimately overseen by Abu Dhabi’s ruling Al Nahyan family for one of the largest office projects ever built in London’s West End.

Berkeley Estate Asset Management got permission to overhaul the former flagship BHS store and adjoining London College of Fashion building on Oxford Street at a meeting Tuesday. The plans, designed by architect KPF, propose about 800,000 square feet (74,322 square meters) of office space and more than 100,000 square feet of stores at 33 Cavendish Square.

The developer is officially owned by the Private Department of the President of the United Arab Emirates. The Al Nahyan family’s sprawling London property portfolio includes some of the city’s most valuable real estate, acquired over several decades under the leadership of former ruler Sheikh Khalifa bin Zayed Al Nahyan. It owns several major properties on and around Berkeley Square and has more recently branched out into other parts of the West End.

The scale of the project is highly unusual for the area, which is dominated by smaller historic buildings that are subject to stringent protections and planning restrictions. The proposed development has almost the same amount of office space as Goldman Sachs Group Inc.’s sprawling UK headquarters in the City of London.

Asian investors flock to Gulf debt in hunt for yield and growth | Reuters

Asian investors flock to Gulf debt in hunt for yield and growth | Reuters

Asian investors are piling into Gulf bonds and loans this year, reflecting both deepening trade and finance ties with the fast-growing region and an uncertain outlook elsewhere, including the world's top two economies, the United States and China.

Bond issuance in the Middle East and North Africa region jumped 20% year-on-year to $126 billion in the first nine months of this year, according to LSEG data, with full-year records in sight both for the region and broader emerging market debt sales outside China.

That growth, driven largely by the six-member Gulf Cooperation Council, represents both rising financing needs linked to oil- and gas-producing economies' efforts to diversify, and growing demand from Asian investors reshuffling their portfolios.

"Clearly there has been a shift with Chinese investors actively diversifying away from U.S.-based investments," said Nour Safa, head of debt capital markets for the Middle East and North Africa at HSBC in Dubai.

Chinese investors have become more comfortable with the region and were now doubling down on investments in both bonds and loans, which have seen particularly strong demand from Asia, Safa said.

Middle East loans syndicated in Asia-Pacific more than tripled to over $16 billion year-to-date from less than $5 billion last year, LSEG data showed.

With China's economy slowing and Washington's tariff-centred policies making investors rethink their exposure to the vast pool of U.S. assets, the Gulf appeals with its stability and solid growth prospects.

The IMF projects the region will grow 3.9% this year and growth will accelerate to 4.3% in 2026. In contrast, global growth, projected at 3.2% in 2025, is seen slowing to 3.1% next year.

"Investors are being more cautious about U.S. Treasuries and are diversifying into several alternate markets," said Oliver Holt, Nomura’s head of debt syndication in Singapore, with high-rated government-backed Middle East issuers often catching investor attention.

Deepening economic ties are also helping with Gulf-Asia trade rising 15% to a record $516 billion last year, around double the value of the region's trade with the West, according to London-based Asia House.

ASIA TAKES BIGGER BOND ALLOCATIONS

Ritesh Agarwal, Emirates NBD Capital's head of debt capital markets, said Asian institutions - hedge funds, asset managers and private banks - have driven a rise in the region's debt allocations over the past 12 to 18 months.

According to Agarwal, average Asian allocation in Gulf debt issues now ranged between 15% and 20%, up from 5% to 7% in early 2024. He said that while the majority of investors were not from mainland China, Chinese capital was flowing through Asian accounts in Hong Kong, Singapore and, for Islamic bonds, Malaysia.A combination of high demand and strong credit fundamentals has allowed Gulf issuers to price bonds at near historic-low spreads over U.S. government debt.

For example, Asian investors bought 40% of AA-rated Qatar's $1 billion 3-year bond last month which priced at just 15 basis points over U.S. Treasuries.

Gulf bonds typically can give Asian investors higher yields compared to similarly rated credits in Asia, said Chong Jiun Yeh, group chief investment officer at Singapore-based UOB Asset Management.

Typically, a BBB-rated U.S. dollar bond from the Gulf can add 10 to 20 basis points in total yield compared with similar Asian credits, he said.

Chinese interest rates have generally been below those in the U.S.

Several Gulf borrowers were also planning to issue bonds in yuan on China's domestic fixed-income market - so-called "Panda bonds" - said Clifford Lee, global head of investment banking at Singapore's DBS Group, who has organised meetings for Gulf banks with Chinese onshore investors.

"We predict that once regular issuance flow begins, it can unlock access to an over $20 trillion market," Lee said.

In some early deals, Saudi National Bank (1180.SE), opens new tab issued the first Singapore dollar bond in late November, while the UAE emirate Sharjah raised 2 billion yuan ($280 million) in October.

Most Gulf markets gain ahead of Fed verdict | Reuters

Most Gulf markets gain ahead of Fed verdict | Reuters

Most stock markets in the Gulf ended higher on Wednesday as investors awaited remarks from Federal Reserve Chair Jerome Powell for policy clues.

As of Wednesday, markets are almost fully pricing in a 25-basis-point interest rate cut following the U.S. central bank's two-day Federal Open Market Committee meeting, despite the committee being more divided than it has been in years.

The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.

Saudi Arabia's benchmark stock index (.TASI), opens new tab gained 0.3%, with ACWA Power Company (2082.SE), opens new tab gaining 4%.

However, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.1%.

The Fed meeting will be especially important for the guidance it offers on monetary policy and economic projections for the year ahead, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

"If the Fed signals readiness for further rate cuts next year, it would likely have a positive impact on GCC economies and corporate earnings. Consequently, the Saudi market may find further support following the decision."

Dubai's main share index (.DFMGI), opens new tab gained 0.5%, led by a 2.7% rise in top lender Emirates NBD (ENBD.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%. 

The Qatari benchmark (.QSI), opens new tab lost 0.1%.

The Abu Dhabi stock market continues to face headwinds from lower oil prices and a negative outlook for the crude market heading into 2026, said Takieddine.

Oil prices - a catalyst for the Gulf's financial markets - held steady after falling about 1% in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on U.S. interest rates.

Crude prices are hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.3%.

Wall Street and #SaudiArabia Differ on Kingdom’s Deficit Target - Bloomberg

Wall Street and Saudi Arabia Differ on Kingdom’s Deficit Target - Bloomberg

Saudi Arabia says it can slash its budget deficit in 2026 after a year in which spending and bond issuance soared to fund huge infrastructure projects. Wall Street isn’t convinced.

While the Saudi government sees the fiscal shortfall at 3.3% of gross domestic product for next year, analysts at Goldman Sachs Group Inc. and Bank of America Corp. estimate the figure will be far higher.

Goldman predicts the gap coming in at 6%, even wider than this year’s projected figure of 5.3%. The result, according to the bank’s analysts, will be a further $25 billion of international borrowing, which would be a record for the kingdom in terms of annual issuance. Bank of America forecasts a deficit of about 5% in 2026.

The government, which published its latest spending plans last week, said revenue should recover next year, helped by a robust non-oil economy. In addition, production of oil — still the source of around 60% of government earnings — is set to be higher after increases agreed to by OPEC+.

With spending, Saudi Arabia has cut back or delayed some of Crown Prince Mohammed Bin Salman’s transformation projects, including parts of the new city of Neom, to avoid overheating the economy.

Foreign analysts, however, think the kingdom will struggle to reduce its deficit given that Brent crude is down to around $63 a barrel. Bloomberg Economics estimates Saudi Arabia needs a price of almost $100 to balance its budget.

Saudi Arabia has sold around $20 billion in dollar- and euro-denominated bonds on international markets this year. That excludes deals from the likes of the sovereign wealth fund and oil giant Aramco.

Finance Minister Mohammed Al-Jadaan, speaking last week, emphasized the government would prefer to bridge its fiscal gap by borrowing instead of running down reserves. In its favor, its debt levels amount to around 30% of GDP, lower than most other sovereigns.

He added that the government will be “very careful to not oversupply the market.”

Razan Nasser, a sovereign analyst at T. Rowe Price, which manages roughly $1.8 trillion of assets, says the market can absorb the kingdom’s levels of issuance for now.

“Harder questions may need to be asked in the medium term as they use up that space, but we are not there yet,” she said.

Still, to minimize the impact on borrowing costs, the government is likely to diversify its funding sources and may look at syndicated loans and tapping investors in Asia, according to Jean-Michel Saliba of Bank of America.

“Large and persistent issuance of Saudi Arabia external debt could weaken investor appetite and impact borrowing costs,” said Saliba, who estimates the Saudis will sell $18 billion of Eurobonds next year.

Middle East IPO Boom Fades Amid Competition From Global Markets - Bloomberg

Middle East IPO Boom Fades Amid Competition From Global Markets - Bloomberg

After four blockbuster years, the Middle East’s initial public offering boom is losing steam as valuations come under scrutiny and listings roar back in the US and Asia.

In recent months, the Gulf’s listing volumes have fallen to their lowest since the pandemic, investors have become markedly more selective, and the region’s once-reliable first-day pop has faded.

The change in sentiment was on show this week as Saudi Arabia’s EFSIM Facilities Management canceled plans for an up to $89 million listing on the kingdom’s main exchange. Saudi Arabia’s sovereign wealth fund has also slowed work on several planned first-time share sales, Bloomberg News has reported. Those moves come as the benchmark Tadawul index has dropped nearly 12% this year.

The Gulf had been a rare bright spot in recent years, buoyed by government privatizations and a push to deepen local capital markets. But lower oil prices have started to cloud the Middle East’s growth outlook, particularly in Saudi Arabia. Meanwhile, as IPO activity fired back up elsewhere, a region that thrived in a global listings drought suddenly faced competition.

Here are four indicators that show how an exuberant cycle gave way to a more measured market.

Lower Volumes

The most striking shift this year was the sharp drop in IPO volumes across the Gulf, with regional listing proceeds more than halving from $13 billion to under $6 billion in 2025.

In the UAE, listings slowed dramatically after the soft debuts of Lulu Retail Holdings PLC and Talabat Holding PLC late last year left investors more cautious. Dubai-based online classifieds platform Dubizzle Ltd. postponed its first-time share sale, a rare example of a pulled deal in the country. Oman, which had briefly outpaced London in IPO volumes in 2024, also saw activity dry up.

In Saudi Arabia, the EFSIM deal was pulled in part due to generally weaker market demand, people familiar with the matter said. Still, the kingdom’s IPO proceeds held steady compared to last year at roughly $4 billion, helping the kingdom reclaim its title as the Gulf’s busiest listing venue. But most deals came from the private sector as the government eased off on large privatizations.

“Government IPOs are large tickets, this year the market was not for this,” said Mostafa Gad, head of investment banking at EFG Hermes, one of the leading arranger of share sales in the Gulf. “Postponing the big ones was a very wise idea.”

Smaller Deals

The shift in sentiment was evident in deal size as well. Last year produced three IPOs nearing $2 billion after strong orderbooks allowed Talabat and Lulu to upsize their offerings late in the process, even though that enthusiasm didn’t carry into trading. In 2025, there was just one billion-dollar deal from low-cost carrier Flynas, and only four transactions topped $500 million.

Gulf IPOs Shrink In Size

Investors pushed toward smaller, simpler stories with clearer financials, “Anything above $500 million starts to get difficult,” said Gad, “People are not willing to navigate through a lot of complexity.”

Follow-on Frenzy

If UAE IPOs slowed, follow-ons filled the gap. Secondary share sales in the emirates climbed toward $5 billion, overtaking IPO proceeds for the first time. Much of that activity came from Abu Dhabi government-backed shareholders trimming stakes to boost free floats, liquidity and index weightings.

Even Qatar, which has largely missed the Gulf-wide share sale boom, saw rare activity: Ooredoo’s multi-million-dollar stake sale by Abu Dhabi Investment Authority became the country’s most significant ECM event in years.

Saudi follow-on volumes were more muted than last year, which was dominated by the government’s $12 billion sell-down in oil major Aramco.

Softer Debuts

Another defining shift came in performance. The 30% plus first-day jumps that had become a feature of Gulf listings started to crack in late 2024 and evaporated in 2025. In Saudi Arabia, the average listing gain turned negative, and only two of the kingdom’s ten largest IPOs now trade above offer. Broader market weakness didn’t help - Saudi equities were among the worst performers in emerging markets this year, dragged down by softer oil prices and concerns that this could dampen government spending.

Demand has also suffered in recent listings. Riyadh developer Al Ramz’s institutional investor books were only 11 times covered earlier this month, a far cry from the triple-digit oversubscription levels that were the norm months ago.

IPOs in the UAE fared better, but signs of fatigue appeared there too. Even contractor Alec Holdings PJSC - state-backed and the kind of deal that historically delivered a strong debut - traded tepidly on day one and is up a modest 3%. Dubai and Abu Dhabi’s main stock indices overall performed relatively well, but instant double-digit listing gains were no longer a given.

For some, that’s a welcome correction. “Everyone will adjust to the idea that not all IPOs will perform 30–40% on day one,” Gad said. “We’re becoming a mature market.”

HSBC’s Gulf Exits Prompt Bank to Bring in Dealmakers From the UK - Bloomberg

HSBC’s Gulf Exits Prompt Bank to Bring in Dealmakers From the UK - Bloomberg

HSBC Holdings Plc has relocated several managing directors from London to the Middle East, replenishing its ranks in a region earmarked as a priority under Chief Executive Officer Georges Elhedery.

The lender moved four London-based MD’s — Robin Brown, Ajay D’Souza, Simran Saggu and Khurram Islam — to the Gulf earlier this year, according to a person familiar with the matter, who asked not to be named as the information is private. It also hired an energy banker from Rothschild & Co. for a role in Saudi Arabia last month, the person said.

That came after oil and gas specialist Vishesh Arora and MD Parveen Garg left in recent months, people familiar with the matter said. Meanwhile, Jon Connor, a 21-year veteran and former co-head of Middle East investment banking, departed after relocating to London over the summer, some of the people said.

A spokesperson for HSBC declined to comment on the departures, but said the bank is adding staff to the region.

The reshuffle comes as competition for talent intensifies across the Gulf, where governments are deploying energy wealth to diversify their economies and spur deal activity. The region has become a priority for HSBC alongside Asia, with Elhedery shuttering the bank’s US and European advisory units to focus on faster-growing markets.

Those plans have been hampered by exits, including the recent departure of two senior bankers who advised on most of HSBC’s mandates for Middle East share sales.

Still, the bank has secured more than 25 new mandates for mergers and acquisitions and initial public offering across those markets since outlining its revised strategy, according to Samer Deghaili, co-head of capital markets and advisory for the Middle East, North Africa and Turkey.

HSBC will continue to invest in the region, including its top talent, he added. Earlier on Tuesday, HSBC said its investment bank obtained a regional headquarters license in Saudi Arabia, joining global rivals increasing their presence in the kingdom.

The Middle East has been a hub for equity issuance as governments drive privatizations to deepen local markets. Companies have raised over $5.8 billion from IPOs this year, though momentum is fading amid valuation concerns and renewed listing activity in the US and Asia.

#Qatar sovereign fund includes Founders Circle Capital in $1 bln venture programme | Reuters

Qatar sovereign fund includes Founders Circle Capital in $1 bln venture programme | Reuters

Qatar's sovereign wealth fund is adding Founders Circle Capital to its venture capital programme, making San Francisco-based FCC the seventh growth investor to take a share in the $1 billion initiative, the funds told Reuters on Tuesday.

The "fund of funds" programme was designed to lure start-ups to the Gulf Arab state and support a years-long effort to diversify its economy away from the gas production that made it rich.

"Our main priority here is to ensure that there is a sustainable venture ecosystem," the QIA's head of funds Mohsin Pirzada said. "Could it mean ultimately unicorns being established and listed? Yes, absolutely."

The initiative represents less than 0.2% of QIA's holdings, which are estimated to be worth $526 billion and span an array of businesses in sectors including technology, infrastructure, energy and finance around the world.

FCC, which manages funds worth about $1.5 billion, plans to open its first international office in Doha, although this was not a condition of inclusion in the programme, its co-founder Ken Loveless said. FCC's investments include delivery platform DoorDash (DASH.O), opens new tab, online trading platform Robinhood (HOOD.O), opens new tab and fitness tracking app Strava.

The QIA has received more than 250 applications to participate in the venture project, Pirzada said. Fund managers provided details of their forecast commercial returns and what economic impact they thought they would bring to Qatar, he added.

Those proposals were graded and allocated capital depending on their score. "If you are, for example, an A-rated proposal, then we can be up to 50% of your capital requirements," Pirzada said. Funds received amounts of $20 million to $150 million.

Previous entrants in the program include B Capital, which is jointly led by Facebook co-founder Eduardo Saverin.

QIA analysed "model cities" including London, Berlin, Singapore and San Francisco as part of its work to attract start-ups, Pirzada said. He said he expected to bring in another four to five funds over the next few months.

Most Gulf markets gain ahead of Fed meeting | Reuters

Most Gulf markets gain ahead of Fed meeting | Reuters

Most stock markets in the Gulf ended higher on Tuesday as investors looked ahead to the Federal Reserve's policy outlook and a widely anticipated U.S. interest rate cut later this week.

Recent data showed that the U.S. Personal Consumption Expenditures Price Index, the Fed's preferred inflation measure, met expectations, while consumer sentiment improved in December.

In November, private payrolls saw their steepest decline in more than two-and-a-half years, but jobless claims for the week ended November 28 fell to their lowest in three years.

According to CME's FedWatch Tool, markets are now pricing in an 89% chance of a quarter-point rate cut at the Fed's December 9–10 meeting.

The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, led by a 2.1% rise in Al Rajhi Bank (1120.SE), opens new tab and a 1.4% increase in Alinma Bank (1150.SE), opens new tab.

Elsewhere, Consolidated Grunenfelder Saady Holding Co (4147.SE), opens new tab closed 0.8% higher in its market debut.

Investor sentiment is being largely underpinned by expectations of a potential rate cut at tomorrow's Fed meeting.

The market outlook is further strengthened by solid fundamentals and ongoing expansion in the non-oil sector, said George Pavel, general manager at Naga.com.

"However, the market could remain exposed to the downside if oil markets continue to slide," he said.

Oil prices - a catalyst for the Gulf's financial markets - steadied after falling 2% in the previous session, with investors keeping a close eye on peace talks to end Russia's war in Ukraine, concerns over ample supply, and the looming U.S. rate decision.

Dubai's main share index (.DFMGI), opens new tab rose 0.8%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab closing 1.4% higher.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.5%.

The Qatari benchmark (.QSI), opens new tab was up 0.4%, with Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets, rising 1.1%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab eased 0.1%, snapping a four-day winning streak.

#AbuDhabi’s Adnoc in deal talks over oil refinery at centre of US sanctions

Abu Dhabi’s Adnoc in deal talks over oil refinery at centre of US sanctions

United Arab Emirates state energy company Adnoc has emerged as the frontrunner to buy Russia’s controlling stake in Serbia’s sole oil refinery, as Belgrade grows increasingly frustrated with Moscow’s foot-dragging under US sanctions. 

Adnoc, or Abu Dhabi National Oil Company, is the main contender to acquire the holding in Serbian Oil Industry (NIS), four people familiar with the proposed deal told the Financial Times. 

While Adnoc is favourite to buy NIS, operator of the Pančevo refinery and the Balkan country’s main crude importer, the Serbian company is continuing to talk to other potential bidders, including Hungarian national oil group MOL, two of the people said. 

While the deal value is unclear, NIS lists assets of $4.7bn in its latest 2024 filing, approximately $2.6bn of which corresponds to the Russian owners’ stake. 

The fate of NIS has hung in the balance since January when it was caught up in US sanctions targeting Russia. The US Treasury called on the Russian owners to sell their stake in NIS as part of its efforts to target Moscow’s oil revenues. 

NIS’s problems deepened when Washington did not extend the waivers that had allowed it to continue operating, forcing the company to halt oil production on Friday. 

NIS, which supplies the vast majority of Serbia’s oil products, is 56 per cent owned by two Gazprom subsidiaries, mainly Gazprom Neft, with the Belgrade government holding about 30 per cent and the rest with small shareholders. 

The sanctions have led to increased tensions between the owners of NIS, two people close to the company said, with Serbian officials becoming increasingly frustrated with the Russian co-owners for repeatedly delaying a sale that could resolve the issue. 

“They seemed reluctant to [negotiate] until the very end, even though there was no shortage of potential buyers and plenty of time to figure the deal out,” one of them said. 

This attitude had only changed in recent weeks, two people familiar with the discussions said. Yet sources close to the Serbian leadership questioned whether the Russian side was really willing to sell. 

In a December 3 statement, Gazprom Neft said NIS was operating “with the full support of the Serbian government” and described their co-operation as “constructive”. The statement made no mention of a possible sale. 

The involvement of Adnoc is down to the close relationship between the UAE and Serbia, rather than for strategic or business reasons, said another person familiar with the process. 

Adnoc has over the past year attempted some $40bn of international deals via its subsidiary XRG, which is seeking to build a global chemicals, gas and low-carbon business. 

But any move for NIS, if successful, would be via the main business rather than XRG, the person suggested. 

Serbia’s preference would be to buy the remainder of NIS itself, but their Russian co-owners are reluctant to sell to them, according to two people familiar with the matter. 

Belgrade is not keen to go down the path of nationalisation owing to fears of inflaming hostile public opinion. 

Serb President Aleksandar Vučić, an ally of the Kremlin, had set a mid-January deadline for Gazprom Neft to sell its stake or face having it put under state administration. 

But he also said in a speech last month that Serbia should “avoid nationalisation and confiscation of property at all costs” but offer a higher price for Russia’s stake should the potential deal with a foreign buyer not materialise. 

Serbia’s neighbours have faced similar issues since Washington imposed separate sanctions on Russian oil companies Lukoil and Rosneft in October. Lukoil owns vital oil refineries in Bulgaria and Romania, as well as other energy infrastructure in Serbia, Croatia, Montenegro and North Macedonia. 

Adnoc declined to comment on the deal. NIS and Gazprom Neft did not reply to a request for comment.

Hedge Fund Influx Has #AbuDhabi Eyeing $16 Billion Expansion - Bloomberg

Hedge Fund Influx Has Abu Dhabi Eying $16 Billion Expansion - Bloomberg

After attracting the world’s biggest financial firms and thousands of professionals to its financial hub in recent years, Abu Dhabi is planning a $16 billion expansion to add more offices, luxury homes and retail space.

Sovereign wealth fund Mubadala Investment Co. and the city’s biggest developer Aldar Properties PJSC are partnering on the mixed-use development that will double the Grade A office space on Al Maryah Island, home to the ADGM financial center. Aldar will hold a 60% stake in the venture, which will add 3,000 luxury waterfront residences, along with retail and hospitality space, according to a statement Monday.

Buoyed by nearly $1.8 trillion in sovereign wealth, Abu Dhabi is fast catching up with neighboring Dubai as a hub for hedge funds and asset managers. In recent weeks, buyout giant KKR & Co. and Man Group Plc, the world’s largest publicly traded hedge fund, have announced plans to open offices in the city.

The investment banking unit of New York-based Cantor Fitzgerald LP and hedge fund giant Balyasny Asset Management joined the rush, as Abu Dhabi Finance Week kicked off on Monday. More firms are expected to unveil expansion plans during the annual confab.

In the third quarter, the number of operational entities within the ADGM rose to 3,227 — a 43% year-on-year increase — with nearly 12,000 active licenses now registered in the free zone. Its workforce has reached nearly 40,000.

To accommodate this influx, the emirate had extended ADGM’s jurisdiction to neighboring Al Reem Island but office space is tight. Some of ADGM’s most active firms are struggling to secure adequate facilities, as occupancy hit 97% earlier this year and rents continue to rise.

Billionaire Alan Howard said his hedge fund has run out of office space in the city, where it now employs 150 people. “We have a wait list for people who want to come, so we’re going to take more space here,” he said at Abu Dhabi Finance Week. Brevan Howard Asset Management, is the largest hedge fund operating in the emirate.

Abu Dhabi isn’t alone. Dubai is building three new towers in its financial district and retrofitting another for hedge-fund startups. Meanwhile, Riyadh’s financial hub is seeking funds for expansion, Bloomberg News has reported.

Mubadala and Aldar share a two-decade partnership, including multiple projects on Al Maryah Island. A unit of the $330 billion wealth fund is among Aldar Properties’ top shareholders.

Last week, Mubadala Capital — its asset management arm — and Aldar launched a real-assets investment platform targeting opportunities across the United Arab Emirates and broader Gulf region.

Watch #AbuDhabi's Expanding Global Influence - Bloomberg

Watch Abu Dhabi's Expanding Global Influence - Bloomberg

Deep pools of wealth is giving Abu Dhabi unprecedented sway over global finance, energy, and AI. With three sovereign wealth funds, and a raft of new entities pouring billions into strategic industries, the emirate is becoming a dominant investing force. Bloomberg's Alex Dooler explains on Horizons Middle East and Africa. (Source: Bloomberg)

Gulf markets end mixed ahead of Fed meeting | Reuters

Gulf markets end mixed ahead of Fed meeting | Reuters

Stock markets in the Gulf ended mixed on Monday, as growing expectation of a U.S. Federal Reserve interest rate cut this week supported some indexes and weighed on others.

U.S. consumer spending rose moderately in September after three straight months of solid gains, suggesting a loss of momentum in the economy at the end of the third quarter as a lacklustre labour market and rising cost of living curbed demand.

Dovish commentary from several Fed officials has further fuelled expectations of monetary easing.

CME's FedWatch tool shows markets are pricing in roughly an 88% chance of a 25-basis-point rate cut at the Fed's meeting this week.

The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.

Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, hit by a 0.4% fall in oil giant Saudi Aramco (2222.SE), opens new tab and a 3% decline in Dar Al Arkan Real Estate Development (4300.SE), opens new tab.

Oil prices - a catalyst for the Gulf's financial markets - declined on Monday as investors monitored ongoing talks to end the war in Ukraine ahead of an expected U.S. Fed interest rate cut this week.

Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.

Dubai's benchmark stock index (.DFMGI), opens new tab gained 0.3%, with budget airlines Air Arabia (AIRA.DU), opens new tab advancing 2.2%.

The Dubai market appears well-positioned for further upside, as Wednesday's Fed meeting could reinforce current momentum, supported by strong corporate and economic fundamentals, said Joseph Dahrieh, Managing Principal at Tickmill.

In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.1%.

Although the recent rebound in oil prices provided some support to market sentiment last week, the boost seems modest amid the prevailing bearish medium-term outlook for crude, said Dahrieh.

The Qatari benchmark (.QSI), opens new tab added 0.3%, with Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets, climbing 1.9%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.5%.

Asset manager Guggenheim plans #Saudi presence as part of Gulf investment push | Reuters

Asset manager Guggenheim plans Saudi presence as part of Gulf investment push | Reuters

U.S.-based Guggenheim Investments, with assets of about $357 billion, is actively considering an office in Saudi Arabia and wants to capitalise on investment opportunities in infrastructure and transportation as part of its expansion in the Gulf region.

The firm has an office in Dubai, the region's top financial and trade hub, and is in the process of getting licensed in Abu Dhabi, the UAE's oil-rich capital city and home to sovereign wealth funds managing around $2 trillion.

"We are very, very positive on the region," Anne Walsh, chief investment officer at Guggenheim Partners Investment Management, told Reuters on the sidelines of the Milken Institute's Middle East and Africa summit in Abu Dhabi.

"And to be a leader in artificial intelligence and technology investment, which I see amongst the countries in the region, and the ability to harness energy, both fossil fuels and others, here in the region is going to be strong as well to support that technology business. So I see a great deal of opportunity."

Asked whether Guggenheim was looking at Riyadh, Walsh said the company was in "active due consideration, yes."

"And, you know, we are looking to deploy capital in Saudi Arabia as well. So not just with an office, but to actually make investments, and particularly from our transportation equipment and infrastructure investing. That makes a lot of sense to us."

Saudi and U.S. officials touted billions of dollars in new investments and growing financial ties between the two countries in November.

Gulf states have accelerated efforts to diversify their economies away from hydrocarbons for longer-term sustainable growth, investing heavily in non-oil sectors like financial services, tourism, technology and manufacturing.

Earlier this year, Guggenheim Investments became a strategic partner of the Future Investment Initiative Institute, which organises Riyadh's flagship annual investment conference.

Most Gulf markets gain on US rate cut hopes | Reuters

Most Gulf markets gain on US rate cut hopes | Reuters

Most stock markets in the Gulf ended higher on Sunday, buoyed by growing expectations of a U.S. Federal Reserve interest rate cut next week.

Investors absorbed the latest U.S. inflation data and adjusted their bets, strengthening expectations for a Federal Reserve rate cut at the December 9-10 policy meeting.

U.S. consumer spending rose only modestly in September, following three months of robust growth, pointing to waning economic momentum late in the third quarter as a sluggish job market and elevated living costs restrained household demand.

Traders are now assigning an 87% probability, based on CME Group's FedWatch Tool, to a 25-basis-point rate cut by the Federal Reserve next week.

Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 2.6% rise in Riyad Bank (1010.SE), opens new tab.

Oil prices rose nearly 1% on Friday to a two-week high, supported by expectations of a U.S. rate cut next week and geopolitical risks that could curb supplies from Russia and Venezuela.

In Qatar, the index (.QSI), opens new tab, however, eased 0.1%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%, with Beltone Financial Holding (BTFH.CA), opens new tab advancing 6.9%.

UK's Man Group joins hedge fund peers planning offices in #AbuDhabi | Reuters

UK's Man Group joins hedge fund peers planning offices in Abu Dhabi | Reuters

British hedge fund Man Group Plc (EMG.L), opens new tab has applied for a licence to open an office in Abu Dhabi next year, joining a growing number of asset managers and traders establishing a presence in the region, it said on Friday.

The $214 billion hedge fund plans to use the base, if approved, to make investments, execute trades, train employees and meet investors, it said in a statement seen by Reuters.

Bloomberg first reported the news.

"Abu Dhabi has established itself as a dynamic and important global financial centre with a strong focus on innovation and AI, which aligns well with our business," a Man Group spokesperson said, adding that the licence application was a natural progression for the firm, underscoring its commitment to the Middle East.

Man Group, which operates a host of different strategies and funds, posted a 22% increase in assets under management to a record $213.9 billion in the 12 months to September 30.

Its AHL Alpha fund returned 2.32% in November while multi-strategy fund Man Strategies 1783 finished the month roughly flat, the group's website said. The funds are up 3.09% and 12.47%, respectively, for the year to end-November.

#UAE markets up on Fed rate cut bets | Reuters

UAE markets up on Fed rate cut bets | Reuters

Stock markets in the United Arab Emirates rose on Friday, mirroring gains in global equities ahead of a key reading of U.S. inflation that investors largely believe will not alter hopes of a rate cut by the Federal Reserve next week. 

Broader MSCI index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab and European index, and the STOXX 600 (.STOXX), opens new tab were up 0.3% respectively. 

U.S. personal consumption expenditures (PCE) price index - the Fed's preferred gauge of inflation - is due later in the day. 

A majority of more than 100 economists polled by Reuters forecast the Fed will reduce its key interest rate by 25 basis points at its December 9-10 meeting. 

Dubai's main index (.DFMGI), opens new tab advanced 0.9%, extending gains to a fourth session, lifted by gains in heavyweight real estate and banking sector stocks. 

Blue-chip developer Emaar Properties (EMAR.DU), opens new tab and its construction arm Emaar Development (EMAARDEV.DU), opens new tab climbed 2.9% and 4.7% respectively, while banking giants Emirates NBD Bank (ENBD.DU), opens new tab and Dubai Islamic Bank (DISB.DU), opens new tab jumped 2.5% and 1.1%. 

Emaar Properties unveiled 'Dubai Square', a next-generation flagship retail and lifestyle hub at the heart of the AED 180 billion Dubai Creek Harbour mega-development. 

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.4% higher, supported by a 2.5% rise in Aldar Properties (ALDAR.AD), opens new tab and a 3% hike in energy shipper Adnoc Logistics & Services (ADNOCLS.AD), opens new tab. 

Aldar and Mubadala Capital announced Aldar Capital, a platform linking global institutional investors to prime real estate and infrastructure opportunities across the UAE and wider GCC. 

Its first fund, planned for launch in 2026, is seeking to raise $1 billion in capital. 

Dubai index recorded 2.5% gain in the week, its biggest increase in more than four months, while Abu Dhabi closed the week up 2.1%, its best performance since late June, according to LSEG data.