Davidson Kempner Joins the Rush of Hedge Funds to Abu Dhabi - Bloomberg
US fund manager Davidson Kempner Capital Management is expanding its international footprint into Abu Dhabi, where it is joining a fast-rising number of hedge funds setting up shop in the Emirate.
The investment firm, which manages over $37 billion of assets, has selected Abu Dhabi’s International Financial Centre for its eighth office, according to a statement seen by Bloomberg News. It’s part of a strategy to build “deep local networks” where it invests, said Chief Investment Officer Tony Yoseloff in the statement.
Davidson Kempner will use the new office as a base to deploy capital into the wider Middle East given the growing opportunities it sees in the region.
“We are looking for growth,” Chris Krishanthan, a partner at Davidson Kempner and its co-head of Global Credit, told Bloomberg News. He said the company sees future opportunities across credit, equities and real estate in the Middle East.
The list of funds with a presence in Abu Dhabi is rapidly expanding, with Hudson Bay Capital Management, Marshall Wace and Arini all having selected the capital of the United Arab Emirates for new offices in the last 12 months. One of its appeals is the pool of local cash to potentially tap.
“A key factor is the huge amount of capital within two miles of the city center,” said Naveen Sabharwal, a managing director at Davidson Kempner.
The $1.1 trillion Abu Dhabi Investment Authority has been working with a range of hedge funds, offering everything from long-only bets to quantitative strategies.
For Davidson Kempner, investments in the Middle East have so far been largely credit focused, targeting liquidations, corporate debt, non-performing loans and private lending, Sabharwal said. In total, the fund manager has made around $2 billion of investments in the region.
Davidson Kempner recently acquired a portfolio of bad loans from Abu Dhabi Commercial Bank PJSC with a face value of $1.4 billion, two years after a similar deal for around $1.1 billion. And last year the fund manager became the majority equity owner of the UAE-based plastic manufacturer JBF Group through a debt-for-equity swap.
Tuesday, 14 October 2025
Startups in Middle East Raised $1.2 Billion in Fundraising Record - Bloomberg
Startups in Middle East Raised $1.2 Billion in Fundraising Record - Bloomberg
Startups in the Middle East raised a record $1.2 billion last quarter, defying a collapse in broader emerging market funding, as international investors wrote bigger checks for growth-stage companies, according to data platform Magnitt.
Funding rose by about 60% in the third quarter from the second and almost quadrupled from a year ago, fueled by so-called mega deals worth more than $100 million, the firm said.
Foreign investors deployed more capital than local backers for the first time in recent years as funds from abroad increasingly look to help firms scale, Magnitt added.
That performance bucks a dramatic downturn in other emerging markets. Southeast Asia posted its weakest quarter in more than seven years, while Africa drew the least funding since 2020 amid tariff shocks and policy uncertainty.
“The Middle East is defying gravity thanks to sovereign initiatives, record-breaking mega deals and rising participation from international investors,” Magnitt said in a quarterly report released on Tuesday.
It described the outperformance as “staggering” and said Southeast Asia and Africa risk falling further behind if global shocks continue into 2026.
“The resilience of EVM ecosystems now depends less on global liquidity cycles alone and more on their ability to mobilize sovereign wealth, implement regulatory reform and forge foreign partnerships.”
Philip Bahoshy, founder and CEO of Magnitt told Bloomberg’s Horizons Middle East and Africa anchor Joumanna Bercetche that across the board appetite is returning to venture as an asset class from both international and regional community.
The Middle East has become a growth engine for emerging venture fundraising after years of sovereign support aimed at driving entrepreneurship and building the startup ecosystem. Regional heavyweights including Saudi Arabia see such companies as critical to developing new industries and supporting economic diversification.
It’s that support that has led the market to evolve and draw more international support from global investors willing to bet on sovereign-anchored ecosystems, according to Magnitt.
Startups in the Middle East also raised a record amount of capital — in excess of $3 billion — on a nine-month basis. The United Arab Emirates attracted the most funding, while Saudi Arabia led in deals, Magnitt said.
Singapore held its lead as the most funded emerging market globally in the first nine months of 2025, though fundraising was still down almost a third year on year as mega deals dried up.
Startups in the Middle East raised a record $1.2 billion last quarter, defying a collapse in broader emerging market funding, as international investors wrote bigger checks for growth-stage companies, according to data platform Magnitt.
Funding rose by about 60% in the third quarter from the second and almost quadrupled from a year ago, fueled by so-called mega deals worth more than $100 million, the firm said.
Foreign investors deployed more capital than local backers for the first time in recent years as funds from abroad increasingly look to help firms scale, Magnitt added.
That performance bucks a dramatic downturn in other emerging markets. Southeast Asia posted its weakest quarter in more than seven years, while Africa drew the least funding since 2020 amid tariff shocks and policy uncertainty.
“The Middle East is defying gravity thanks to sovereign initiatives, record-breaking mega deals and rising participation from international investors,” Magnitt said in a quarterly report released on Tuesday.
It described the outperformance as “staggering” and said Southeast Asia and Africa risk falling further behind if global shocks continue into 2026.
“The resilience of EVM ecosystems now depends less on global liquidity cycles alone and more on their ability to mobilize sovereign wealth, implement regulatory reform and forge foreign partnerships.”
Philip Bahoshy, founder and CEO of Magnitt told Bloomberg’s Horizons Middle East and Africa anchor Joumanna Bercetche that across the board appetite is returning to venture as an asset class from both international and regional community.
The Middle East has become a growth engine for emerging venture fundraising after years of sovereign support aimed at driving entrepreneurship and building the startup ecosystem. Regional heavyweights including Saudi Arabia see such companies as critical to developing new industries and supporting economic diversification.
It’s that support that has led the market to evolve and draw more international support from global investors willing to bet on sovereign-anchored ecosystems, according to Magnitt.
Startups in the Middle East also raised a record amount of capital — in excess of $3 billion — on a nine-month basis. The United Arab Emirates attracted the most funding, while Saudi Arabia led in deals, Magnitt said.
Singapore held its lead as the most funded emerging market globally in the first nine months of 2025, though fundraising was still down almost a third year on year as mega deals dried up.
IMF ups #SaudiArabia's 2025 GDP growth forecast to 4% as oil output rises | Reuters
IMF ups Saudi Arabia's 2025 GDP growth forecast to 4% as oil output rises | Reuters
The International Monetary Fund upgraded its 2025 economic growth forecast for Saudi Arabia on Tuesday due to a faster-than-expected unwinding of oil production cuts in the world's top crude exporter.
In its latest World Economic Outlook, the IMF lifted its forecast for Saudi Arabia's GDP growth in 2025 to 4%, from 3% it projected in April. Growth in 2026 was revised slightly higher to 4% as well.
Accelerating growth in the oil and gas exporters of the Gulf states was expected to also lift growth in the broader Middle East and Central Asia region, the IMF said, "as the effects of disruptions to oil production and shipping dissipate and the impacts of ongoing conflicts abate."
It now projects regional GDP growth of 3.5% percent in 2025, versus 3% forecast in April, and up from 2.6% last year. GDP in 2026 is projected to increase 3.8%.
"This largely reflects developments in Gulf Cooperation Council countries, in particular Saudi Arabia, where the unwinding of oil production cuts was faster than expected, and Egypt, where the outturn in the first half of 2025 was better than expected," the IMF said.
Saudi Arabia, the world's top crude exporter, is in the midst of a vast economic transformation plan known as Vision 2030 intended to help diversify revenue sources away from hydrocarbons and increase non-oil growth. It is investing massively in sectors such as tourism, manufacturing, and advanced technology.
But voluntary oil production cuts and lower oil prices have led to a decrease in revenue and widening fiscal deficits, opens new tab, as well as a scaling back of some projects.
Non-oil growth vastly outperformed overall real GDP growth of 3.6% in the first half of 2025, the finance ministry said in a pre-budget statement last month, up 4.8% in the same period, and contributed more than 55% to total GDP.
The International Monetary Fund upgraded its 2025 economic growth forecast for Saudi Arabia on Tuesday due to a faster-than-expected unwinding of oil production cuts in the world's top crude exporter.
In its latest World Economic Outlook, the IMF lifted its forecast for Saudi Arabia's GDP growth in 2025 to 4%, from 3% it projected in April. Growth in 2026 was revised slightly higher to 4% as well.
Accelerating growth in the oil and gas exporters of the Gulf states was expected to also lift growth in the broader Middle East and Central Asia region, the IMF said, "as the effects of disruptions to oil production and shipping dissipate and the impacts of ongoing conflicts abate."
It now projects regional GDP growth of 3.5% percent in 2025, versus 3% forecast in April, and up from 2.6% last year. GDP in 2026 is projected to increase 3.8%.
"This largely reflects developments in Gulf Cooperation Council countries, in particular Saudi Arabia, where the unwinding of oil production cuts was faster than expected, and Egypt, where the outturn in the first half of 2025 was better than expected," the IMF said.
Saudi Arabia, the world's top crude exporter, is in the midst of a vast economic transformation plan known as Vision 2030 intended to help diversify revenue sources away from hydrocarbons and increase non-oil growth. It is investing massively in sectors such as tourism, manufacturing, and advanced technology.
But voluntary oil production cuts and lower oil prices have led to a decrease in revenue and widening fiscal deficits, opens new tab, as well as a scaling back of some projects.
Non-oil growth vastly outperformed overall real GDP growth of 3.6% in the first half of 2025, the finance ministry said in a pre-budget statement last month, up 4.8% in the same period, and contributed more than 55% to total GDP.
ADNOC set to win EU nod for $17 billion Covestro deal with remedy tweaks, sources say | Reuters
ADNOC set to win EU nod for $17 billion Covestro deal with remedy tweaks, sources say | Reuters
Abu Dhabi state oil firm ADNOC is set to secure EU approval for its 14.7-billion-euro ($17 billion) bid for German chemicals company Covestro, with EU regulators likely to seek tweaks to remedies provided earlier this month, sources with direct knowledge of the matter said.
The European Commission is examining the deal, ADNOC's biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state, over concerns that ADNOC may be using state subsidies to acquire the chemicals company.
The Commission declined to comment. Covestro shares gained 2.4% in late trade after the Reuters story was published, versus a slight dip in the STOXX Europe 600 chemicals index.
The EU regulator sought feedback from rivals and third parties last week after ADNOC offered to change its articles of association to remove EU concerns about the unlimited state guarantee.
It also pledged to retain Covestro's intellectual property in Europe. The Commission is expected to demand some minor changes to the remedies before clearing the deal, the sources said. Such demands are typical after feedback from third parties.
ADNOC reiterated previous comments about offering a package of robust and proportionate remedies to the Commission and that it was confident this would lead to timely clearance of the deal.
Separately, the Commission is expected to resume its investigation of the deal shortly after temporarily halting the process last month while waiting for ADNOC to provide requested information.
ADNOC has since responded to all the requests for information, said another source.
Abu Dhabi state oil firm ADNOC is set to secure EU approval for its 14.7-billion-euro ($17 billion) bid for German chemicals company Covestro, with EU regulators likely to seek tweaks to remedies provided earlier this month, sources with direct knowledge of the matter said.
The European Commission is examining the deal, ADNOC's biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state, over concerns that ADNOC may be using state subsidies to acquire the chemicals company.
The Commission declined to comment. Covestro shares gained 2.4% in late trade after the Reuters story was published, versus a slight dip in the STOXX Europe 600 chemicals index.
The EU regulator sought feedback from rivals and third parties last week after ADNOC offered to change its articles of association to remove EU concerns about the unlimited state guarantee.
It also pledged to retain Covestro's intellectual property in Europe. The Commission is expected to demand some minor changes to the remedies before clearing the deal, the sources said. Such demands are typical after feedback from third parties.
ADNOC reiterated previous comments about offering a package of robust and proportionate remedies to the Commission and that it was confident this would lead to timely clearance of the deal.
Separately, the Commission is expected to resume its investigation of the deal shortly after temporarily halting the process last month while waiting for ADNOC to provide requested information.
ADNOC has since responded to all the requests for information, said another source.
Mideast Stocks: Most Gulf markets gain on US rate cut hopes, but trade woes weigh
Mideast Stocks: Most Gulf markets gain on US rate cut hopes, but trade woes weigh
Most stock markets in the Gulf closed higher on Tuesday, propelled by higher expectations of U.S. Federal Reserve interest rate cuts and anticipation of third-quarter earnings reports, although gains were moderated by renewed U.S.-China trade tensions.
Investors are awaiting Fed Chair Jerome Powell's speech at the NABE annual meeting later in the day for cues into the central bank's policy path. Traders expect a 99% and 94% chance of a 25-basis-point cut in October and December, respectively.
Policy shifts in the U.S. often sway Gulf markets where most currencies are pegged to the dollar.
Dubai's main share index jumped 1.4%, buoyed by a 3% gain in blue-chip developer Emaar Properties , and a 3.8% gain in top lender Emirates NBD.
The bank is in advanced talks to buy a stake in Indian private lender RBL Bank , Reuters reported on Tuesday, citing two people familiar with the deal.
The bank is in advanced talks to buy a stake in Indian private lender RBL Bank , Reuters reported on Tuesday, citing two people familiar with the deal.
Chinese e-commerce giant Alibaba's cloud business unit has launched its second data centre in Dubai, it said on Tuesday, nine years after its first.
Abu Dhabi's benchmark index inched 0.1% higher.
Abu Dhabi's benchmark index inched 0.1% higher.
Saudi Arabia's benchmark index finished flat. The market’s direction hinges on upcoming third-quarter results, Joseph Dahrieh, managing principal at Tickmill, said. "However, the continued downturn in oil prices, which have touched a five-month low, could weigh negatively on sentiment."
The Qatari index declined 0.8%, hit by a 2.2% fall in the Gulf's biggest lender, Qatar National Bank.
Oil prices — a catalyst for the Gulf's financial markets — fell by over 2% as trade tensions flare between the U.S. and China, the world's two biggest economies, and after the International Energy Agency raised the prospect of increased supplies and weaker demand growth.
The Qatari index declined 0.8%, hit by a 2.2% fall in the Gulf's biggest lender, Qatar National Bank.
U.S. and China from Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war.
Outside the Gulf, Egypt's blue-chip index finished 0.1% higher.
Outside the Gulf, Egypt's blue-chip index finished 0.1% higher.
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