Mideast Stocks: Gulf stocks steady as investors digest rate cuts; Qatar, Egypt lag

Mideast Stocks: Gulf stocks steady as investors digest rate cuts; Qatar, Egypt lag

Gulf stock markets were largely steady on Monday after regional central banks lowered interest rates in tandem with the U.S. Federal Reserve, though uncertainty over the Fed's future policy direction continued to temper sentiment. Qatar and Egypt markets, however, saw extended losses, driven by profit-taking.

The Fed trimmed its benchmark rate by a quarter percentage point on Wednesday in response to softening labour market, but signalled a measured approach to further monetary policy easing, leaving investors in doubt about the pace of future moves. Subsequently, the central banks of Saudi Arabia, the United Arab Emirates and Qatar each cut rates by 25 basis points.

Saudi Arabia's benchmark index rose 0.6%, for the fifth consecutive session, with buying concentrated in information technology and financial shares. Saudi National Bank jumped more than 1.5%, while Saudi Telecom advanced nearly 1%. Oil behemoth Saudi Aramco added 0.1%, marking its seventh straight day of gains.

Dubai's main share index finished 0.1% higher in a quiet session, helped by gains in utilities and real estate. Emaar Properties advanced 0.7%, consolidating two days of gains after the developer scrapped plans to sell any stake in its Indian subsidiary and said it is exploring potential joint ventures with major Indian companies, including Adani Group. Dubai Electricity and Water Authority advanced 1.5%.

Abu Dhabi's index also edged up 0.1%, extending two sessions of gains, lifted by a 1.7% increase in ADNOC Drilling. ADNOC Gas ended flat after rising as much as 1.4%. The company signed a $513 million contract with a subsidiary of China Petroleum Engineering. Newly listed Orascom Construction surged 4%, extending gains from the previous two sessions. Separately, U.S. chip giant Nvidia and Abu Dhabi's Technology Innovation Institute (TII) announced the launch of a joint research lab in the UAE to develop next-generation AI models and robotics platforms.

In contrast to its regional peers, Qatar's stock index slipped 0.4%, weighed down by broad-based sectoral declines. Industries Qatar fell 1.5%, while Qatar Islamic Bank dropped more than 1%. 

Outside the Gulf, Egypt's blue-chip index shed 0.1%, dragged down by a 1% decline in Commercial International Bank.

Adnoc’s Stumbles in Global Dealmaking Hinder Quest to Expand Influence - Bloomberg #AbuDhabi #UAE

Adnoc’s Stumbles in Global Dealmaking Hinder Quest to Expand Influence - Bloomberg

Abu Dhabi’s state oil company has megabucks to deploy in global energy M&A, seeking to expand its influence internationally and secure its future in a less carbon-intensive world.

But finding the right targets at the right price is proving to be a challenge.

Last week, Abu Dhabi National Oil Co.’s new investment unit XRG walked away from its biggest transaction yet, a planned $19 billion takeover of Australian natural gas producer Santos Ltd.

Another major deal to buy German chemical maker Covestro AG is at risk of being derailed by a European Union competition probe.

Bagging Santos would’ve taken XRG to the top ranks of global producers of liquefied natural gas — a fuel that Abu Dhabi sees as key to its economic growth — and given it quick access to fast-growing Asian markets. But disagreements over taxation and a methane leak unexpectedly killed the deal.

The saga puts the spotlight on Adnoc and XRG’s ability to see through complex cross-border transactions. The willingness to walk away from Santos suggests a discipline not to overspend in the pursuit of their growth ambitions, but raises questions about the pace of expansion that can be achieved.

The focus now turns to the Covestro deal, into which the European Commission launched a probe in July amid concerns that Adnoc’s state funding by the United Arab Emirates could allow it to behave in a way that hampers fair competition across the bloc.

XRG said this month that the investigation could torpedo the transaction. Such an outcome would call into question its ability to do any major deals in Europe, where state-aid concerns are paramount. Reuters has reported that the company was willing to make concessions to the EU.

The challenges in Europe and Australia could push Adnoc more firmly into the American orbit, where the UAE has pledged hundreds of billions of dollars of investments following President Donald Trump’s tour of the Middle East earlier this year.

In 2024, it bought an interest in NextDecade Corp.’s LNG export project, then a stake in Exxon Mobil Corp.’s proposed hydrogen venture, both in Texas. Its first acquisition of US natural gas fields could follow.

Venture Debt Firm Stride Bets on #SaudiArabia With $200 Million - Bloomberg

Venture Debt Firm Stride Bets on Saudi Arabia With $200 Million - Bloomberg

Venture debt firm Stride Ventures has made its first foray into Saudi Arabia and plans to deploy $200 million there in the next two years to capitalize on the kingdom’s push for new sources of financing.

Stride, which has already extended more than $1 billion in credit across India, Southeast Asia and the UK, recently led a funding round into Saudi financial technology firm Erad. The deal marks Stride’s first fintech investment in the Middle East and kicks off its investment push in Saudi Arabia, according to Fariha Javed, a partner.

The company plans to lend to a diverse mix of Saudi companies — in terms of both size and industry — and is looking to extend another $50 million to firms in the United Arab Emirates after recently closing its first Gulf-focused fund, Javed said in an interview. Stride plans to later recycle capital to the Middle East.

“We want to end up deploying $500 million within the next four years in the region,” Javed said.

The expansion comes as venture investment and private credit grow in prominence in the kingdom, with entities from the state to companies and banks seeking alternative sources of funding to help drive Crown Prince Mohammed bin Salman’s economic overhaul.

Private debt in Gulf Cooperation Council nations and Egypt may grow at a compound annual rate of 30% over the next five to six years as international investors continue to expand their regional presence, according to PricewaterhouseCoopers LLP.

Stride is also in talks with a construction technology company on another deal, Javed said, without disclosing further details. Its backing of a $33 million funding round in Erad, a startup providing financing to small and medium-sized enterprises, will support the company’s expansion across Saudi Arabia and the UAE.

Founded in 2022, Erad plans to deploy more than $100 million for SMEs in the coming year, according to co-founder Salem Abuhammour.

Stride has been operating out of New Delhi since 2019 and has backed over a hundred companies including India-based grocery delivery startup Zepto, which is said to be planning an initial public offering later this year or in early 2026. The firm expects seven of its portfolio companies to go public “very soon,” Javed said.

Mideast Royals Invest $680 Million In London Developer Regal - Bloomberg #UAE #Sharjah #SaudiArabia

Mideast Royals Invest $680 Million In London Developer Regal - Bloomberg

Arada Developments, co-owned by the son of Saudi Arabian Prince Alwaleed bin Talal and a member of Sharjah’s royal family, is investing 2.5 billion dirhams ($680 million) in a London real-estate developer as it expands its operations into developed markets.

Arada will have a 75% stake in London’s Regal, which has a development pipeline of homes across the UK, the Sharjah-based firm said in a statement.

Developers in the United Arab Emirates — which Dubai and Sharjah are part of — have been left flush with cash after a property boom at home. Many have begun expanding globally in order to use that money and create a cushion against any potential slowdown in their domestic market.

The acquisition comes as a string of pressures roil London’s property market. At Britain’s biggest housebuilder Barratt Redrow Plc, annual sales fell short of previous guidance after weaker demand for its homes in the city. Developers in the capital also remain under pressure from higher borrowing costs and regulatory hurdles. Fewer than 4,000 new homes were sold in the first half of 2025 in London, according to data from researcher Molior London, the lowest level since 2010.

Regal is best known for building apartment blocks, student accommodation and senior living communities in London. The firm also develops workspaces and has commercial real estate space.

The London-based developer’s projects include The Haydon, a luxury apartment block in the City of London and Fulton & Fifth, an 800-home neighborhood in North London that’s a stone’s throw from the iconic Wembley Stadium.

The developer’s UK arm, set to be renamed Arada London, has a 10,000-unit pipeline across 11 projects. The transaction will enable the pipeline to triple over the next three years, the statement said.

Sharjah, where Arada is a major developer, has seen a surge in demand for property amid a flow of residents seeking a haven from Dubai’s soaring prices and rents.

Arada bought land and is building 2,500 homes in Australia, which is facing an acute shortage of new housing supply.

In January, another UAE firm made an investment in UK real estate. Abu Dhabi-based Modon Holding PSC bought a 50% stake in the London skyscraper that will house Ken Griffin’s Citadel and Citadel Securities once complete.