Most Gulf markets in red on fading rate cut hopes; Egypt gains | Reuters

Most Gulf markets in red on fading rate cut hopes; Egypt gains | Reuters

Most stock markets in the Gulf ended lower on Sunday after hawkish Federal Reserve officials dimmed hopes for a December interest rate cut.

The record-long U.S. government shutdown that concluded on Thursday has generated a significant data void, leaving the Federal Reserve and market participants without key insights ahead of the upcoming policy meeting.

Traders had anticipated new figures revealing economic deceleration, which could provide the Fed with justification for a December rate reduction.

Such hopes dimmed after an increasing number of Fed officials adopted a more cautious stance on further easing, citing stubborn inflation and a resilient labor market despite two rate cuts this year.

Market expectations for a 25 basis-point rate cut next month fell to nearly 46%, from 50% earlier this week, CME Group's FedWatch tool showed.

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

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1.1%, hit by a 0.7% fall in Al Rajhi Bank (1120.SE), opens new tab and a 1.3% decrease in Saudi National Bank (1180.SE), opens new tab - the country's biggest lender by assets.

Elsewhere, oil behemoth Saudi Aramco (2222.SE), opens new tab retreated 1.1%.

In Qatar, the index (.QSI), opens new tab tumbled 1%, as almost all its constituents were in negative territory, including petrochemical maker Industries Qatar (IQCD.QA), opens new tab, which was down 2.3%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2.5% to hit record highs, ending a four-session losing streak, boosted by a 11.9% surge in Telecom Egypt (ETEL.CA), opens new tab following a sharp rise in third-quarter profit.

#Saudi PIF Exits Nine US Stocks to Drag Holdings to 2025 Low - Bloomberg

Saudi PIF Exits Nine US Stocks to Drag Holdings to 2025 Low - Bloomberg

Saudi Arabia’s sovereign wealth fund exited positions in almost a dozen US-listed stocks in the third quarter, including Pinterest Inc. and industrial gas firm Linde Plc, taking the value of its holdings in American equities to the lowest in almost a year.

The $1 trillion Public Investment Fund also sold off all of its stakes in Prologis Inc. and Air Products and Chemicals Inc., which is co-developing a green hydrogen plant in Saudi Arabia’s Neom, according to a Bloomberg News analysis of the fund’s latest 13F filing.

The PIF pared its holding in Lucid Group Inc., while maintaining positions in Uber Technologies Inc. and Electronic Arts Inc. The total value of the wealth fund’s US portfolio stood at $19.4 billion, down about 18% from the prior period and the lowest level of 2025.

The move follows a series of exits in the prior period, including from Meta Platforms Inc. and FedEx Corp., and comes as the PIF sharpens its focus on domestic companies and prioritizes local investment to help drive the kingdom’s economic diversification plans.

The latest 13F disclosure also comes just days before Crown Prince Mohammed bin Salman is due to visit President Donald Trump at the White House, in what will be the Saudi leader’s first official visit to the US since 2018.

Agreements on security, semiconductors and nuclear technology are expected to feature on the agenda. Trump will also be looking for Saudi Arabia to follow through on a pledge to invest hundreds of billions of dollars in the US after his visit to the kingdom in May.

Chaired by the crown prince, the PIF is the key entity tasked with helming Saudi Arabia’s economic diversification program known as Vision 2030, which includes dozens of mega-construction projects like Neom and the historical heritage site of Diriyah.

That job has become more challenging in recent years as subdued oil prices deepen the government budget deficit, heaping more pressure on the PIF to drive spending in the local economy. Still, the fund plans to continue deploying more capital in the years ahead.

The PIF has said it aims to put $70 billion to work after 2025, with the lion’s share of that going to Saudi investments. It deployed $57 billion across priority sectors in 2024, according to its annual report.

More insights on the fund’s 2026-2030 investment strategy is expected to be released early next year, Bloomberg has reported.

#AbuDhabi Wealth Fund Said to Mull Partial Sale in Qatari Telco - Bloomberg

Abu Dhabi Wealth Fund Said to Mull Partial Sale in Qatari Telco - Bloomberg

Abu Dhabi Investment Authority is considering paring back part of its stake in Qatari telecommunications company Ooredoo QPSC, according to people familiar with the matter.

The sovereign wealth fund is weighing a plan to raise between $500 million to $600 million with the sell-down, the people added, declining to be identified while discussing confidential information. ADIA holds a 10% stake worth around $1.26 billion in the Qatari firm.

The deliberations are ongoing, the people said, and the size and timing of any potential deal are still being discussed and are dependent on market conditions.

Representatives for ADIA, as the wealth fund is known, declined to comment. Ooredoo representatives didn’t immediately respond to requests for comment.

Ooredoo shares have climbed almost 24% this year. The company raised its dividend target range last month citing its “strong financial position,” after normalized net profit climbed 6% year-on-year in the first nine months to $843 million.

The company’s other major shareholders include sovereign wealth fund Qatar Investment Authority and Qatar’s General Retirement and Social Insurance Authority, which hold about 53% and 12.7%, respectively, according to data compiled by Bloomberg.

ADIA oversees more than $1 trillion and is the biggest Gulf wealth fund. It has in recent years embraced a more data-driven approach to investing to make the fund nimbler and quicker in its decisions.