#AbuDhabi to Consolidate Wealth Fund ADQ, L’imad Assets - Bloomberg

Abu Dhabi to Consolidate Wealth Fund ADQ, L’imad Assets - Bloomberg

Abu Dhabi is folding its $263 billion wealth fund ADQ into a sovereign entity overseen by Crown Prince Sheikh Khaled bin Mohammed, a significant overhaul that potentially thrusts the royal into the heart of the emirate’s dealmaking ambitions.

ADQ’s deal with L’imad Holding Co., will create yet another investing behemoth in the emirate that’s already home to entities that control close to $2 trillion in assets. The changes reflect Abu Dhabi’s vision to grow sovereign investment funds locally and globally, according to a statement.

“The creation of a new platform worth potentially $500 billion, trumping ADQ, clearly elevates Khaled in terms of his strategic autonomy and strategic depth in Abu Dhabi,” said Andreas Krieg, a lecturer in Middle Eastern security issues at King’s College in London.

The development will be watched closely across the global financial community. Abu Dhabi’s state-backed firms have been among the world’s most active investors, doing deals across sectors ranging from finance to artificial intelligence. They are significant players in private markets, and have deployed sizable sums to hedge funds.

“If you look at the assets within ADQ, it is the backbone of the Abu Dhabi economy, and so this new sovereign wealth fund will be hugely influential and impactful,” said Diego Lopez, founder and managing director at Global SWF, which tracks wealth funds.

Chaired by Sheikh Khaled, 44, L’imad will have operational, industrial and technological capabilities, in addition to investment platforms across private and public markets. That remit could make the royal a key figure in dealmaking, adding to his already powerful political role within the OPEC exporter.

Meanwhile, Jassem Al Zaabi, a prominent local executive and L’imad’s managing director and chief executive officer, will likely become an even more important part of Abu Dhabi’s dealmaking apparatus.

Division of Power
Sheikh Khaled, the eldest son of United Arab Emirates President and Abu Dhabi Ruler Sheikh Mohammed bin Zayed, was appointed crown prince in 2023. At the time, the ruler also promoted his siblings, expanding their responsibilities and portfolios — Sheikh Tahnoon bin Zayed, the UAE’s national security adviser, was named deputy ruler of the emirate and handed charge of the $1 trillion Abu Dhabi Investment Authority.

That careful division of power — in a region where leadership can transition through brothers, cousins and sons — led to Sheikh Tahnoon playing an outsize role in the business of Abu Dhabi, while the crown prince focused on the political and social aspects of running the country. Friday’s move puts Sheikh Khaled at the heart of managing some of the emirate’s most important companies and elevates his role as a dealmaker.

The current ruler, Sheikh Mohammed, also played a key role at Mubadala Investment Co. before he took the top job.

The Al Nahyan ruling family is among the world’s richest, with a net worth of about $300 billion, according to an analysis of their complex holdings by the Bloomberg Billionaires Index.

L’imad has already made waves on the global scene after it joined established Gulf wealth funds to back Paramount Skydance Corp.’s hostile bid for Warner Bros. Discovery Inc. It has since unveiled a board staffed with well-known names, including Mubadala Chief Executive Officer Khaldoon Khalifa Al Mubarak.

Before Friday’s shakeup, Sheikh Tahnoon had been chairman of ADQ. Since its inception in 2018, the fund has emerged as one of the world’s fastest-growing sovereign investors.

It’s unclear what role he’ll have in the enlarged entity and he wasn’t mentioned in the statement. The developments come shortly after ADQ’s founding CEO Mohammed Hassan Alsuwaidi stepped down to take up a new role at Lunate, the region’s largest alternatives manager.

ADQ’s portfolio spans everything from a stake in auction house Sotheby’s to Abu Dhabi’s flagship airline. It primarily focuses on helping develop the local economy, and more than a third of its roughly 280 deals over the past five years involved UAE-based companies.

The move to fold it under L’imad is likely to improve decision-making and agility, especially in areas of ADQ’s comparative advantage such as critical infrastructure and global supply chains, said Robert Mason, an associate professor at the Anwar Gargash Diplomatic Academy.

Abu Dhabi's Sovereign Wealth Funds Control $1.8 Trillion

ADQ's assets will be consolidated under L’imad

Source: Global SWF

It fits as well into a broader theme of consolidation within Abu Dhabi, where the government has been merging entities to gain scale and become more competitive in the investment landscape.

International Holding Co. PJSC, the emirate’s largest listed company that’s also chaired by Sheikh Tahnoon, merged Multiply Group PJSC, 2PointZero, and Ghitha Holding PJSC in October to create a sprawling investment behemoth with $33 billion in assets.

For its part, L’imad has said it is focused on building national champions across sectors including energy, real estate development and infrastructure, and the financial and banking sectors.

Abu Dhabi recently folded the owner of McLaren Automotive and its stake in Chinese electric vehicle maker Nio Inc. into L’imad. That move was aimed at building up the fund and simplifying the management of some of the city’s investments, people familiar with the matter said at the time.

L’imad first appeared on the Abu Dhabi scene late last year, after agreeing to buy a controlling stake in Modon Holding PSC — an Emirati property developer with a market value of about $15 billion, from ADQ and IHC.

The deal with ADQ and centralization of power under Sheikh Khaled comes at a critical moment, according to Krieg at King’s College in London.

“It makes more sense to pool these resources and assets to make decisions and execute them swiftly at a time Abu Dhabi really needs to ramp up its geo-economic game as they’re under pressure from Saudi Arabia.”

#UAE markets track oil prices lower as geopolitical risks ease | Reuters

UAE markets track oil prices lower as geopolitical risks ease | Reuters

Stock markets in the United Arab Emirates closed lower on Friday in line with oil prices on signs the U.S. may engage in dialogue with Iran over its nuclear programme, reducing concerns of supply disruptions from a U.S. attack.

President Donald Trump said on Thursday he planned to speak with Iran, even as the U.S. dispatched another warship to the Middle East and Pentagon chief Pete Hegseth said the military would be ready to carry out whatever the president decided.

Oil prices - a key contributor to the Gulf's financial market - declined 1% to $70.04 a barrel by 1107 GMT.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab declined 0.8%, dragged down by a 5.5% slide in UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab and a 1.6% fall in real estate giant Aldar Properties (ALDAR.AD), opens new tab.

Abu Dhabi Commercial Bank reported fourth-quarter net profit of AED 3.34 billion ($909.56 million) that fell short of market estimates of AED 3.55 billion with Q4 operating income falling 5% sequentially.

Separately, Abu Dhabi's newest sovereign wealth fund L'imad Holding is taking control of peer ADQ, the government media office said on Friday, a major consolidation that creates a new investment heavyweight in the wealthy emirate under its crown prince.

Dubai's main market (.DFMGI), opens new tab settled 0.7% lower, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab slipping 2% and Dubai Islamic Bank (DISB.DU), opens new tab decreasing 2.3%.

Dubai recorded 6.4% gains, its strongest monthly advance since July last year, while Abu Dhabi jumped 2.9% over the month, according to LSEG data.

#AbuDhabi folds assets worth $263bn into new wealth fund controlled by crown prince

Abu Dhabi folds assets worth $263bn into new wealth fund controlled by crown prince

Abu Dhabi has folded state holding vehicle ADQ into L’imad, a new sovereign wealth fund chaired by the emirate’s crown prince, Sheikh Khaled bin Mohammed bin Zayed al-Nahyan. 

The consolidation of ADQ, which has $263bn in assets including major stakes in Abu Dhabi’s airline, ports and nuclear generation company, marks a generational shift of investment influence to the 44-year-old heir apparent, who is being groomed for power by his father, UAE President Sheikh Mohamed bin Zayed. 

“L’imad marks a new pillar in Abu Dhabi’s investment strategy — the time was right for the crown prince to control his own sovereign wealth fund,” said one senior investment banker. 

Abu Dhabi’s estimated $1.8tn in sovereign wealth, an increasingly important factor in global transactions, is expanding the emirate’s global influence, including a recent push into Africa. 

The merger “aims to create a sovereign investment powerhouse with a diversified asset base”, said a statement from the emirate’s supreme council for financial and economic affairs on Friday. The council oversees Abu Dhabi’s investment funds and oil company. 

Greater responsibility for Sheikh Khaled within the emirate’s investment framework through L’imad echoes the establishment of the $330bn sovereign fund Mubadala, which was formed in 2002 when Sheikh Mohammed was consolidating power under his father, Sheikh Zayed. 

L’imad, formed in late 2025, has already acquired Abu Dhabi’s CYVN automotive holdings, including McLaren and an 18 per cent stake in Chinese EV manufacturer Nio, as well as a vast property portfolio via Modon. 

Jassem al-Zaabi, the powerful head of the emirate’s department of finance, is chief executive of the new fund, which is also leading Abu Dhabi’s participation in the $108bn hostile bid for Warner Bros launched by David Ellison’s Paramount.  

Government-owned ADQ has formed a key aspect of the investment empire controlled by Sheikh Tahnoon bin Zayed, the UAE’s national security adviser. He also chairs the Abu Dhabi Investment Authority, the emirate’s original $1.1tn sovereign wealth fund.   

Sheikh Tahnoon, whose influence spans security, diplomacy and investment strategy, controls extensive private assets, including the sprawling conglomerate IHC and tech-focused development arm, G42. 

The founding chief executive of ADQ, Mohamed al-Suwaidi, has shifted to become executive chair of asset manager Lunate, which has $115bn of assets under management within the business empire of Sheikh Tahnoon.

#Saudi Stocks Jump Most Since 2020 Before Market Liberalisation - Bloomberg

Saudi Stocks Jump Most Since 2020 Before Market Liberalization - Bloomberg

Saudi stocks are heading for their best month in five years, finding support from a rally in broader emerging markers, rising commodity prices and the kingdom’s looming loosening of foreign investment rules.

The Tadawul All Share Index has climbed 9% in January, on track for its biggest monthly advance since November 2020, albeit slightly underperforming an 11% gain by the MSCI emerging-market equity benchmark.

The world’s biggest oil exporter is set to lift so-called Qualified Foreign Investor rules and allow non-residents to invest directly on the main exchange starting on Feb. 1. The move is seen as a big step toward allowing foreigners to buy majority stakes in Saudi stocks.

The liberalization is seen triggering at least $10 billion of inflows to the market, according to JPMorgan Chase & Co. and Franklin Templeton. Al Rajhi Bank and Saudi National Bank as well as Saudi Aramco and Saudi Arabian Mining Co. contributed most to the Tadawul’s rally this month.

The January rally has also been fueled by a rise in oil prices, a record run for metals and continued appetite for emerging-market stocks. Brent crude prices rose 15% in January, snapping five months of losses.

“A combination of a number of factors, including oil, QFI changes and a number of targeted reforms,” contributed to the start-of-year jump, said Junaid Ansari, head of research and strategy at Kamco Investment Co.

The Saudi stock revival comes after a dismal period for the Tadawul, which dropped 13% last year amid weak oil prices, even as its EM peers enjoyed their best performance in eight years. Saudi authorities reformed sectors like real estate, insurance, pharma and healthcare and reduced the scale of its mega projects, helping revive investor sentiment.

Following this month’s advance, the Tadawul trades at 15.8 times estimated earnings, near its 10-year average of 16 times.

“Valuations also play a key role, especially coming from a decline last year and with a low base,” Ansari said. Sector changes and “recalibrating some of the biggest projects in the Kingdom are appealing to investors and help address concerns like liquidity, funding and free float,” he said.

Gulf bourses end lower on Iran jitters | Reuters

Gulf bourses end lower on Iran jitters | Reuters

Stock markets in the Gulf closed down on Thursday, as fears of a possible U.S. military action against Iran raised concerns that the region would bear the brunt of any Iranian retaliation.

The deployment of a U.S. aircraft carrier and supporting warships to the Middle East this week has broadened U.S. President Donald Trump's options for potential military action, following his repeated threats to intervene over Iran's crackdown.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.7%, ending a five-day winning streak, hit by a 1.3% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.6% slide in ACWA Power (2082.SE), opens new tab.

Oil behemoth Saudi Aramco (2222.SE), opens new tab, however, gained 0.6%.

 

Crude prices, a catalyst for the Gulf's financial markets, hit a four-month high as Trump warned Iran of possible attacks if it did not make a deal on nuclear weapons.

Most sectors were lower on the day, but the losses were contained by energy, with Aramco supported by rising oil prices, said Milad Azar, market analyst at XTB MENA.

According to Azar, sentiment remains underpinned by fourth-quarter earnings and optimism ahead of next week's opening of the market to foreign investors, leaving room for further gains on strong results, firmer oil, and solid non-oil fundamentals.

Bank AlJazira (1020.SE), opens new tab advanced 4.2%, its biggest intraday gain in four months, after posting a strong increase in annual net profit and proposing a 0.50 riyal-per-share cash dividend for the second half — its first in three and a half years.

In mid-January, Saudi Arabia, Qatar, Oman and Egypt urged Washington not to carry out a strike on Iran.

Dubai's main share index (.DFMGI), opens new tab retreated 0.5%, weighed down by a 1.4% fall in toll operator Salik (SALIK.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.3%, with Abu Dhabi Commercial Bank (ADCB.AD), opens new tab falling 1.7%. After market hours, the lender reported a fourth-quarter net profit of 3.34 billion dirhams ($909.41 million), up from 2.57 billion dirhams a year ago.

The UAE said on Monday it would not allow its airspace, territory, or waters to be used for hostile military action against Iran, reaffirming its neutrality and commitment to regional stability.

The Qatari index (.QSI), opens new tab finished 0.6% lower, with Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets, sliding 1.3%.

The Egyptian bourse was closed for a public holiday.

#Kuwait readies $7 billion pipeline deal as Gulf turns to foreign capital | Reuters

Kuwait readies $7 billion pipeline deal as Gulf turns to foreign capital | Reuters

Gulf governments are stepping up infrastructure deals with foreign investors, with Kuwait set to ​launch an oil pipeline network stake sale as soon as February in a deal that could raise up to $7 billion, three sources with knowledge of the ‌matter said.

The shift comes as oil prices, down more than 25% in two years, sit below levels needed to fund the Gulf’s diversification plans. Governments are now offering investors access to assets once off limits - from pipelines to power plants - to bring in pension funds, private equity firms and infrastructure specialists.

"The national transformation plans underway in the Gulf are bold and ambitious. It can’t be all funded from within," said Bader Mousa Al-Saif, assistant professor of history at Kuwait University and associate fellow at UK policy institute Chatham House.

"Luring international markets in has been multi-directional and multi-sourced - coming from all parts of the ‌Gulf and using all levers at hand to finance their way through."

For the Kuwait deal, Kuwait Petroleum Corp has hired HSBC alongside JPMorgan and ​Centerview Partners as advisers, the sources said. HSBC is also arranging so-called "staple financing" which the buyers can use to back their purchase, four sources said, while advisers have begun sounding out investors, three sources said.

Saudi Aramco (2222.SE), opens new tab is also preparing to sell some gas-fired power plants in the coming weeks in a deal expected to raise around $4 billion, according to two sources.

Centerview Partners, JPMorgan and ‍Aramco declined to comment. KPC and HSBC did not immediately respond to requests for comment.

MORE DEALS BEING PLANNED

The region could see several more billion dollars worth of infrastructure deals over the next 12 months, said Rajesh Singhi, Standard Chartered's global co-head of M&A advisory.

"We could be looking at a fresh wave of transactions — as additional assets are prepared for market," said Singhi.

The bank advised on Abu Dhabi's 3.8 billion dirhams ($1.03 billion) sale ⁠of PAL Cooling Holding last year and is preparing more district cooling assets for sale, Singhi said.

The entry of specialised investors has brought more sophisticated deal structures and new capital sources like ‍pension funds and insurance companies not traditionally seen in the region, Singhi said.

WESTERN FUNDS LOOK EAST

Quebec's Caisse de dépôt, Canada's second-largest pension fund with $290 billion in assets, is seeking new Gulf infrastructure investments beyond ‌its Dubai ports operator ‌DP World stake, said its infrastructure head Rana Karadsheh-Haddad.

"Our current focus is on identifying the right partners who share our long-term outlook and asset-management approach," Karadsheh-Haddad told Reuters.

Investors are increasingly setting up shop locally. Australia's Macquarie Group (MQG.AX), opens new tab is scouting for a Saudi base, while U.S. BlackRock opened a Kuwaiti office last year.

BlackRock's Global Infrastructure Partners led an $11 billion deal last year for Aramco's midstream assets tied to its Jafurah gas project, potentially the largest shale development outside the U.S.

Besides the gas-fired plants sale, Aramco could divest other assets such as housing, pipelines and port infrastructure, sources have said.

PIPELINE RETURNS ⁠ATTRACTIVE

For Gulf state firms, the stake sales allow them ⁠to free up capital for expansion and ​higher‑growth projects while retaining operational control. State oil companies are pursuing these deals despite having access to cheaper debt, partly to diversify funding sources and draw in long‑term institutional investors, sources and analysts have said.

A typical Gulf pipeline transaction gives investors a minority stake in a ring‑fenced entity with long‑term lease payments. Such deals have delivered returns of about 12% to 14% and offer exposure to investment‑grade issuers and ‍stable dollar‑linked cashflows, two sources said.

Kuwait's deal is expected to follow the model used across the region, three sources said, with the government retaining majority ownership and day-to-day control.

The deals are typically structured as U.S. Treasury yield plus the issuer's credit spread plus a premium for the transaction, the sources said.

The model has also created a secondary market: In April 2024, BlackRock and KKR sold their 40% stake in ADNOC Oil Pipelines to Abu ​Dhabi-based Lunate, with KKR returning to invest in ADNOC’s gas assets less than a year later.

"It is the nature ‍of the financial return that is so attractive; it is the sustainable, close to guaranteed income stream in a world where that's harder to find," said Ben Powell, BlackRock Investment Institute's chief APAC and Middle East strategist.

Most Gulf bourses gain on earnings, oil | Reuters

Most Gulf bourses gain on earnings, oil | Reuters

Most Gulf stock markets closed higher on Wednesday as investors focused on corporate earnings and firmer oil prices, while the Egyptian stock exchange snapped a nine-day winning streak.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, with oil major Saudi Aramco (2222.SE), opens new tab up 1.5%, while Alinma Bank (1150.SE), opens new tab advanced 3.2% following a sharp rise in annual net profit.

In a separate bourse filing, the bank also proposed a capital increase through bonus shares, granting one bonus share for every five shares held.

Crude prices - a catalyst for the Gulf's financial markets - hit their highest level since late September on Wednesday after a winter storm disrupted U.S. crude output while a weak U.S. dollar and continued Kazakh outages lent further support.

Aramco led energy stocks lifted the market, though gains were limited by caution ahead of today's U.S. Federal Reserve meeting, with attention on Chair Jerome Powell's remarks, the 2026 easing outlook, and Fed independence, said Joseph Dahrieh, Managing Director at Tickmill.

"Nevertheless, the Saudi market appears poised for further gains, boosted by Q4 earnings, the potential opening of the market to foreign investors on February 1, and solid non-oil growth projections for the year."

Dubai's main share index (.DFMGI), opens new tab advanced 0.8%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 2.3%.

Among other gainers, Dubai Financial Market (DFM.DU), opens new tab jumped 1.8%, as the bourse operator is slated to report its earnings later in the day.

In Abu Dhabi, the index (.FTAFDGI), opens new tab added 0.4%, with ADNOC Gas (ADNOCGAS.AD), opens new tab up 1.4%.

The energy firm will invest more than $20 billion to increase its gas processing capacity by almost 30% by 2029, its CEO Fatema Al Nuaimi said on Tuesday.

Elsewhere, the UAE's largest lender First Abu Dhabi Bank (FAB.AD), opens new tab closed 0.7% higher, following a 22% increase in fourth-quarter net profit.

The Qatari index (.QSI), opens new tab gained 0.8%, led by a 1.3% rise in petrochemical maker Industries Qatar (IQCD.QA), opens new tab. Mesaieed Petrochemical (MPHC.QA), opens new tab added 1.4% ahead of its earnings announcement.

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

Most Gulf markets gain as earnings season advances | Reuters

Most Gulf markets gain as earnings season advances | Reuters

Most stock markets in the Gulf ended higher on Tuesday, with investors focused on corporate earnings.

Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1%, led by a 2% rise in Al Rajhi Bank (1120.SE), opens new tab. The bank reported annual net profit of 24.79 billion riyals ($6.61 billion), up from 19.72 billion riyals a year earlier.

Al Rajhi also announced a cash dividend of 1.75 riyals per share for the second half, marking a nearly 20% rise compared to the same period last year.

Among other gainers, Saudi National Bank (1180.SE), opens new tab - the country's biggest lender by assets - jumped 3.4% following a sharp rise in 2025 net profit.

The market is also gaining support from expectations of increased foreign investor access to the Saudi market starting February 1, said Milad Azar, market analyst at XTB MENA.

Oil prices continue to provide stability after recovering last week, though geopolitical developments pose an underlying risk that could affect the market should regional tensions intensify, added Azar.

In Abu Dhabi, the index (.FTFADGI), opens new tab rose 0.9%.

Meanwhile, crude prices were little changed as resumption in supply from Kazakhstan offset the price increase caused by a storm impacting crude production and refineries on the U.S. Gulf Coast.

The head of Abu Dhabi National Oil Company (ADNOC) said global oil demand will remain above 100 million barrels per day through 2040, while demand for both liquefied natural gas and electricity will grow by 50% or more.

Dubai's main share index (.DFMGI), opens new tab added 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.4%.

The Qatari index (.QSI), opens new tab, however, eased 0.3%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 1.3%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.7%, closing at its highest, with Commercial International Bank (COMI.CA), opens new tab rising 1.4%.

Mubadala Joins #Dubai Property Portal’s $170 Million Fundraise - Bloomberg

Mubadala Joins Dubai Property Portal’s $170 Million Fundraise - Bloomberg

Dubai-based Property Finder has raised $170 million from investors in the United Arab Emirates, bringing total funding for the classifieds website over recent months to nearly $1 billion.

Abu Dhabi’s Mubadala Investment Co. will invest $75 million, while BECO Capital will allocate $20 million, Property Finder said in a statement. Another unidentified wealth fund will provide the remaining funding, the firm said, without disclosing the name.

“As a UAE company, we find it very important to welcome local investors,” Michael Lahyani, founder and chief executive officer of Property Finder, said in an interview. “And we wanted to make room for them even though we didn’t really need to raise more capital.”

The latest funding comes after a $525 million investment in September from private equity firms Permira and Blackstone. Weeks later, it secured $250 million of debt from Ares Management.

Real estate businesses in the Gulf, particularly in Dubai, have drawn increasing foreign capital as the emirate has emerged as a hub for tourism and corporate activity. That’s a sharp contrast from before, when global asset managers largely treated the region as a source of capital rather than a destination for investment.

Lahyani said the company, which operates in five markets across the Gulf, still expects the biggest upside to be in Dubai and Abu Dhabi, where it has grown 30% in the past five years.

Dubai’s property market was among the world’s best performers last year, extending the longest real estate rally in its history despite warnings about oversupply and bubble risks.

Founded about two decades ago, Property Finder competes with classified platforms Dubizzle Ltd., which postponed its initial public offering last year, and Bayut, which is backed by Jared Kushner’s Affinity Partners.

Property Finder is not currently considering an IPO, Lahyani said.

“You need a minimum size before you can IPO a business,” he said. “It’s potentially dangerous to IPO a business sub-scale.”

#SaudiArabia-#UAE Tensions Put Middle East Businesses on Edge - Bloomberg

Saudi Arabia-UAE Tensions Put Middle East Businesses on Edge - Bloomberg

Middle East businesses are watching tensions between Saudi Arabia and the United Arab Emirates with increasing nervousness, concerned it could impact commerce at a time when both nations are emerging as powerhouses of regional trade and finance.

Those tensions erupted into the open in December when the kingdom gave UAE forces 24 hours to withdraw from Yemen, and Saudi media has since ramped up rhetoric against its eastern neighbor.

While no formal diplomatic or commercial measures have been taken, some companies operating in both countries have begun contingency planning to ensure business continuity should the situation escalate further, according to people familiar with the matter, who requested anonymity in order to discuss private deliberations.

For international firms and investors, the situation is evoking memories of the more than three-year blockade of Qatar — imposed by Saudi Arabia, the UAE, Bahrain and Egypt — that began in 2017 and disrupted regional supply chains. Adding to their anxiety about regional stability, President Donald Trump said last week that an “armada” of US Navy vessels was heading to the Middle East as he continues to threaten Iran with strikes.

“At this stage, companies are not reacting operationally; they are asking baseline questions,” said Hussein Nasser-Eddin, chief executive officer of Dubai-based security services provider Crownox. “Most inquiries focus on financial resilience in case of escalation and whether there are any early diplomatic or consular shifts.”

Some UAE-based firms have reported problems securing Saudi business visas, the people said. It’s not clear how widespread the issue is or whether it marks a change of policy by the Saudi government, which has been pushing for companies to have their regional headquarters in the kingdom for several years.

At least one UAE-based supplier to Saudi Arabia is weighing whether to start building inventory as a cushion, while some funds and companies are evaluating plans to open offices in the kingdom to insulate themselves should there be curbs on cross-border activity, the people said.

At stake is about $22 billion in trade between the two largest Gulf economies, as well as business confidence as both seek to cement their positions as global finance hubs. Their sovereign wealth funds have become bankers to the world, with significant investments across finance, energy, technology and health care. That’s also led to a growing rivalry, with both vying to become the region’s preeminent business hub for Wall Street giants, hedge funds and asset managers.

Representatives for the Emirati and Saudi governments did not respond to requests for comment.

The latest tensions underscore the increasingly delicate balancing act facing global financial firms, as they seek access to an estimated $3 trillion controlled by sovereign wealth funds in Abu Dhabi and Riyadh, while maintaining operations across both markets.

Many professionals who operate in the kingdom continue to be based in Dubai and travel back and forth. Saudi Arabia has sought to change that with an ultimatum requiring foreign firms to base their Middle East operations in the kingdom or risk losing business with its vast network of government entities.

Several people said that while the tensions are a persistent topic of conversation, they are not seeing any real impact on businesses or planned investments. Others expressed optimism that political leaders will work behind the scenes to resolve the situation.

There are some signs of a willingness to deescalate. Saudi Foreign Minister Prince Faisal Bin Farhan Al Saud on Monday said the UAE’s decision to leave Yemen — “if that indeed is the case” — would be a building block for better relations. Saudi Finance Minister Mohammed Al-Jadaan said in an interview with CNBC last week that, aside from national security matters, everything else can be discussed and he’s confident the two sides will “reach an agreement to deescalate.”

Events last year showed how international business is starting to take geopolitical volatility in its stride. Even the the 12-day war between Israel and Iran — which included Iranian missile strikes on a US air base in Qatar — barely disrupted business activity.

UAE financial institutions this month continued to buy Saudi bonds at roughly the same pace as before, people familiar with the matter said, and major Emirati lenders have helped underwrite many of those sales, according to data compiled by Bloomberg.

“It could slow growth, but as long as it doesn’t escalate to an existential threat to either side, most folks will come around eventually and go back to doing business as usual,” said Ryan Bohl, a senior Middle East and North Africa analyst at Rane Network, a risk consultant.

Most Gulf markets in red on uncertainty over US policies | Reuters

Most Gulf markets in red on uncertainty over US policies | Reuters

Most Gulf stock markets ended lower on Monday, weighed by a mix of geopolitical and policy worries — ranging from U.S.–NATO tensions over Greenland and uncertainty around tariffs to growing questions about the Federal Reserve's independence.

Over the weekend, U.S. President Donald Trump warned he would slap a 100% tariff on Canada if it went ahead with a trade agreement with China.

He has also threatened to impose 200% tariffs on French wines and champagne, seemingly to pressure French President Emmanuel Macron to sign on to his Board of Peace initiative.

Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to finish flat.

The Saudi stock market's recent rebound lost steam, with investors turning cautious ahead of additional fourth-quarter earnings releases and ongoing regional geopolitical tensions, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

Crude prices - a catalyst for the Gulf's financial markets - edged higher on Monday after climbing more than 2% in the previous session, as output disruptions in major U.S. crude-producing regions and tensions between the U.S. and Iran boosted prices.

According to Takieddine, the uptick in oil prices remains shaky amid concerns about a possible oversupply in 2026, though a sustained rise in crude could ultimately lift market sentiment.

In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.2%.

U.S. President Donald Trump briefly calmed markets last week by walking back tariff threats and softening his rhetoric on possible military action involving Greenland. But fresh sanctions aimed at Iran have renewed investor concerns.

Dubai's main share index (.DFMGI), opens new tab declined 0.6%, dragged down by a 1% slide in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 1.7% retreat in toll operator Salik Company (SALIK.DU), opens new tab.

The market's underlying fundamentals remain strong and growth forecasts for the year are upbeat, indicating that the rally could regain traction if fourth-quarter earnings come in favorably, said Takieddine.

The Qatari benchmark (.QSI), opens new tab, however, rose 1.2%, clawing back most of its losses from the previous session.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.4%, reaching a new record high.

Aramco Starts First Bond Sale of This Year as Oil Prices Lag - Bloomberg

Aramco Starts First Bond Sale of This Year as Oil Prices Lag - Bloomberg

Aramco is launching its first bond sale of the year, just as oil prices remain well below levels needed to balance Saudi Arabia’s budget.

The government-owned oil producer is marketing debt with maturities ranging from three to 30 years, according to a person with knowledge of the matter who asked not to be identified. The company plans to invest more than $50 billion this year in supporting and expanding oil and natural gas production, while maintaining its high base dividend of $21 billion.

Saudi Arabia’s budget remains heavily dependent on oil revenue as the kingdom pursues an ambitious modernization drive that has forced the government to project spending shortfalls for the coming years. Aramco is a key contributor to state finances, with large dividend payments supplementing royalties linked to crude sales.

Initial pricing though ranges from about 100 basis points over US Treasuries for the three-year tranche to about 165 basis points for the longer maturity. The market expects the bond sale will raise about $2 billion.

While Brent crude has risen this year amid geopolitical tensions, including US attacks on or threats of action against fellow OPEC producers Venezuela and Iran, the global benchmark lost almost 20% in value last year.

Brent was trading just at about $66 a barrel on Monday, while Saudi Arabia needs levels above $90 a barrel to balance its budget under current spending plans.

Aramco’s gearing — a measure of indebtedness — remains low relative to industry peers, and the company plans to gradually raise it, Chief Financial Officer Ziad Al-Murshed said on conference calls this year. Aramco has also signaled that further debt sales are planned.

Adnoc increases stake in Rio Grande LNG project in Texas

Adnoc increases stake in Rio Grande LNG project in Texas

Abu Dhabi’s state oil company Adnoc has increased its stake in the Rio Grande liquefied natural gas project in Texas, as it seeks to expand in the US and become one of the world’s largest integrated gas suppliers. 

XRG, the overseas investment arm of Adnoc, said on Monday it had bought a 7.6 per cent equity interest in the second phase of Rio Grande from Global Infrastructure Partners (Gip), a division of the world’s largest asset manager BlackRock. 

Rio Grande is being developed by NextDecade, a US LNG company, with financial backing from Gip, XRG, TotalEnergies and several other partners. Construction on the first phase of the project in Brownsville, Texas, began in 2023 and is anticipated to begin production in 2027. Phase 2 is likely to be substantially complete by 2031, according to NextDecade. 

XRG did not disclose the acquisition price for the stake in phase 2, which will build two trains capable of processing about 12mn tonnes of LNG per year. NextDecade forecasts this will cost just over $13bn. 

The deal follows XRG’s purchase in September 2024 of an 11.7 per cent stake in the first phase of Rio Grande which, when all phases are complete, is expected to be one of the world’s largest LNG facilities with capacity to ship up to 60mn tonnes of the super-chilled fuel per year. 

“By growing our presence in US LNG, we are strengthening a resilient, globally scaled gas platform while further deepening the UAE — US energy partnership — supporting energy security, jobs and investment-driven growth,” said Mohamed Al Aryani, president of XRG’s international gas business. 

XRG’s latest investment in Rio Grande comes as investors have become more bearish on LNG developers owing to concerns about a looming supply glut caused by the rapid expansion of facilities in the US and Qatar. Shares in NextDecade have fallen by just over 50 per cent in the past six months, as numerous energy forecasters have warned prices are set to fall. 

XRG was created by Adnoc in November 2024 as an $80bn vehicle to buy up international gas, chemicals and low-carbon energy businesses. It aims to become a top-five integrated global gas and LNG business, targeting 20mn-25mn tonnes per year of capacity by 2035.

Middle Eastern energy groups have stepped up activity in the US over the past two years, as they build a presence in the world’s largest LNG export nation and respond to Donald Trump’s call for increased foreign investment. The White House said in March that the UAE had committed to invest $1.4tn in the US over a decade following meetings in Washington between senior UAE and US officials and a dinner with vice-president JD Vance. 

In April, Mubadala Energy, owned by Abu Dhabi sovereign investor Mubadala, said it would buy a 24.1 per cent stake in energy-focused asset manager Kimmeridge’s shale gas production business in Texas and its Commonwealth liquefied natural gas export terminal in Louisiana.

#Saudi Developers Jump as Kingdom Moves to Open Property Market - Bloomberg

Saudi Developers Jump as Kingdom Moves to Open Property Market - Bloomberg

Saudi Arabian developers’ shares jumped the most in four months as the kingdom began implementing new laws allowing foreigners to own a wider range of local real estate assets, including in the holy cities of Mecca and Madinah.

The Tadawul Real Estate Management & Development Index rose 4.5% on Sunday, with every one of its 17 members in the green. Makkah Construction & Development Co. led with gains of about 10%, followed by Dar Al Arkan Real Estate.

The sectoral rally helped to lift the broader Saudi equity benchmark for a third session and put the index, which is coming off of its worst annual performance in a decade, on course for a gain in January.

The moves follow an announcement by Saudi regulators on Jan. 22 that the Gulf nation is now accepting applications for foreigners interested in owning local property. That includes in Riyadh and Jeddah, in addition to Mecca and Madinah, where ownership had mostly been limited to Muslim citizens and Saudi companies.

“This is a market that’s hungry for good news,” said Fadi Arbid, founding partner and chief investment officer at Amwal Capital Partners. “Obviously the opening of the market for real estate, especially in Mecca and Madinah, is a good thing.”

While there were few new details around the foreign ownership rules, the most recent Saudi statement indicates that the kingdom is proceeding with plans to allow foreign ownership of residential, commercial, agricultural and industrial properties. Under the new law, non-Saudis can also acquire land.

Saudi Arabia approved an overhaul of its property ownership law in July as it aims to draw an influx of foreign buyers into the Gulf’s largest economy, while accelerating a build-up of infrastructure needed to help diversify the economy away from oil.

The kingdom is also due to open its equity market to all types of non-Saudis starting Feb. 1.

#Saudi stocks gain ahead of earnings, market opening to all foreign investors | Reuters

Saudi stocks gain ahead of earnings, market opening to all foreign investors | Reuters

Saudi Arabia's stock market closed higher on Sunday, supported by anticipation of upcoming earnings and next month's opening of the capital market to all categories of foreign investors. 

Qatar's benchmark index slipped as investors locked in profits.

The kingdom will open its financial markets to all foreign investors starting February 1, the market regulator said earlier this month, as it relaxes rules to draw more overseas capital.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 1.2%, rising for a third session, led by a 1.8% rise in Al Rajhi Bank (1120.SE), opens new tab.

Saudi stocks extended recent momentum on upbeat fourth-quarter earnings expectations and anticipation of February's opening to foreign investors, said Daniel Takieddine co-founder and CEO, Sky Links Capital Group.

"Additionally, a rebound in oil prices can provide a floor of support for the index, although questions regarding the sustainability of crude’s recovery linger."

On Friday, oil prices settled up almost 3% after rising to their highest in more than a week after Trump ramped up pressure on Iran through sanctions on vessels that transport its oil, and an announcement that an "" was heading toward the Middle Eastern nation.

In Qatar, the index (.QSI), opens new tab dropped 1.3%, as all its constituents were in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which retreated 1.5%.

According to Takieddine, even as the fourth-quarter earnings season continues this week, sentiment remains guarded, with investors wary that regional geopolitical tensions could escalate.

Outside the Gulf, Egypt's blue-chip index (.EGx30), opens new tab gained 0.9%, hitting a new record high, with Talaat Moustafa Group Holding (TMGH.CA), opens new tab advancing 3.5%.

#SaudiArabia says it has $2.5 trillion in mineral reserves. That could make it a key player in the race for rare earths | CNN

Saudi Arabia says it has $2.5 trillion in mineral reserves. That could make it a key player in the race for rare earths | CNN

Minerals are back in the news, with President Donald Trump announcing on Wednesday that he’d reached an agreement on a possible deal on Greenland that would include rights to rare earth minerals.

Critical and rare earth minerals underpin technologies propelling the clean energy transition, AI and advanced military hardware, among others, and their production is dominated by China. It controls over 90% of the world’s output of refined rare earths and over 60% of rare earth mining production, according to the International Energy Agency.

Speaking to CNN last week at the Future Minerals Forum in Riyadh, Saudi Arabia, Abigail Hunter, executive director of the Minerals Center at SAFE (Securing America’s Future Energy), a nongovernment organization, described China as “light years ahead” of the US, “through decades of strategic investments, state-backed projects and coordination with the private sector, and investing internationally.”

But now Saudi Arabia is growing its mineral sector, to reduce its economic dependence on oil and, according to analysts, increase its geopolitical influence.

Saudi claims it has $2.5 trillion in mineral reserves. These include gold, zinc, copper and lithium, but also rare earth deposits, including dysprosium, terbium, neodymium and praseodymium, which are used in everything from electric cars and wind turbines to high-speed computing.

Saudi Arabia’s budget for exploratory mining increased 595% between 2021 and 2025, per S&P Global (though it is still modest by the standards of advanced mining nations like Canada and Australia). Licensing new mining sites to domestic and international companies has gathered pace.

But exploration is one thing, end product is another. “The reality is mining is a really long game,” said Hunter. “It takes three to five years to build a processing plant. It can take up to 29 years in some jurisdictions.”

The nation is cutting red tape, reducing tax rates for mining investment and intends to spend big to catch up with established players.

At the Future Minerals Forum, state-owned mining company Maaden announced it would invest $110 billion in metals and mining over the next decade, including entering into international partnerships and attracting industry talent. “We’re humble enough to realize we can’t do it alone,” said Maaden CEO Bob Wilt, speaking at the event.

The value of Saudi Arabia’s minerals still pales in comparison to the value of its oil (Saudi has the second largest proven reserves in the world). But there are other reasons the nation is investing in the sector.

Saudi’s Vision 2030 plan aims to diversify the country’s economy and names mining as a key pillar. Its plan goes beyond just mining minerals and includes building out its supply chain for domestic industries — for example, the nation has set ambitious targets for electric vehicle manufacturing.

Experts say Saudi’s growing infrastructure could also position the country as a regional hub for refining critical minerals mined elsewhere.

“Looking to the Global South and partnering with African countries … logistically, it makes a lot of sense for us to be able to process more minerals here,” said Hunter.

Saudi Arabia’s ambitions have drawn the interest of the US. In the past, after extracting its own heavy rare earths, the US has sent material to China for refining. Last year, China tightened export controls on heavy rare earths, many of which have military applications.

Last November, during a state visit to Washington, Saudi Arabia announced it would invest up to nearly $1 trillion in US infrastructure, technology and industry. Part of that deal included a bilateral collaboration on minerals. US company MP Materials (which is backed by the Pentagon) announced that it would partner with Maaden and the US Department of Defense to build a new refinery in Saudi Arabia, which would be 49% owned by MP Materials and the Department of Defense.

Melissa Sanderson, co-chair of the Critical Minerals Institute, a think tank, said that Saudi Arabia’s biggest asset as a processing hub is its “reliable quantities of energy,” along with the expertise of state-owned energy company Aramco, which could develop improved refining methodologies, “potentially displacing China as a lower-cost, more environmentally friendly processor,” she speculated.

Its environmental credentials remain to be seen. Saudi Arabia was among a group of resource-rich countries who at the recent United Nations Environment Assembly opposed part of a draft resolution of a treaty seeking greater supply chain transparency and to limit the environmental harm of mining.

Sanderson indicated that its transition to a mining hub may not all be smooth sailing. Instability in the Middle East remains a challenge, along with a mixed bag of diplomatic relations between Saudi Arabia and African nations with mineral wealth. That said, the kingdom could turn to Central Asian countries with their own deposits, where Aramco has longstanding relationships, she said.

“In many ways, the economic transformations underway (in Saudi Arabia) are designed more to elevate the political standing of the country … (to) an essential player — a pivot point, if you will — in a geopolitical scenario,” said Sanderson.

“This is not a game about immediate return,” she added. “This is a strategy about long-term power and long-term influence and long-term gain.”

#UAE markets dip on renewed geopolitical jitters | Reuters

UAE markets dip on renewed geopolitical jitters | Reuters

Stock markets in the United Arab Emirates closed lower on Friday, with Dubai pulled down by weakness in utilities and financial shares after U.S. President Donald Trump renewed threats against Iran.

President Donald Trump said on Thursday that the U.S. has an "armada" heading towards Iran but hoped he would not have to use it, renewing warnings to Tehran against killing protesters or restarting its nuclear programme.

Dubai's main market (.DFMGI), opens new tab retreated 0.2%, snapping six sessions' winning streak after hitting nearly 20-year high in the previous session.

State-run utility Dubai Electricity and Water Authority (DEWAA.DU), opens new tab slid 1.3%, while Islamic lender Dubai Islamic Bank (DISB.DU), opens new tab eased 0.2%.

However, business park operator Tecom Group (TECOM.DU), opens new tab gained 0.6% after the firm acquired an integrated university campus for 125 million dirhams ($34.03 million).

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% lower, ending six sessions' momentum, dragged down by a 2.9% fall in Sharjah Islamic Bank (SIB.AD), opens new tab and a 1.3% drop in Sharjah-based Dana Gas (DANA.AD), opens new tab.

Oil prices - a key catalyst for the Gulf's financial market - jumped on Friday with Brent crude up 1.6% at $65.08 a barrel by 1127 GMT.

Dubai's index climbed 2.7% for the week, its best weekly performance since mid-July last year, while Abu Dhabi added 1.6% in the week, according to data compiled by LSEG.

Chinese Banks Top Global Peers as Main Lenders to The Gulf - Bloomberg

Chinese Banks Top Global Peers as Main Lenders to The Gulf - Bloomberg

The Gulf is fast emerging as part of China’s next big financial play, with years of diplomatic overtures now translating into hard cash.

Chinese banks’ lending to the region jumped nearly three-fold to a record $15.7 billion in 2025, excluding bilateral loans, with the bulk going into Saudi Arabia and United Arab Emirates, according to Bloomberg-compiled data. In contrast, banks from the US, UK and eurozone together provided only about $4.6 billion to the Gulf last year, the data showed.

China’s appetite extends beyond loans. Already this year, Saudi Arabia raised $11.5 billion through a dollar bond sale, with major Chinese banks among bookrunners for the deal.

In another measure of the deepening ties, the chairman of a major Chinese bank made a rare visit to Riyadh, Dubai and Abu Dhabi last year, while another senior executive traveled to the Gulf three times in 2025 — a first in their career, according to people familiar with those trips. Both had one goal in mind: to capture financing opportunities fueled by deepening ties and rising capital flows between China and the Middle East.

This strengthening of relations reflect both geopolitics and economics. As competition with the US intensifies, Chinese banks are diversifying away from American markets, while supporting domestic companies expanding into the Gulf — a region rich in oil and wealth.

For Saudi Arabia, this liquidity will help fund its $2 trillion economic transformation plan at a time when low oil prices have pushed the kingdom’s budget into deficit. The UAE, meanwhile, is channeling funds into infrastructure as it positions itself as a global hub for artificial intelligence.

“It’s an incredible marriage of convenience,” said Vasuki Shastry, a Dubai-based senior adviser at geopolitical risk firm Gatehouse Advisory Partners. “The Gulf countries are eager to learn from China and at the same time, they want access to capital.”

Still, Saudi Arabia and the UAE are likely to remain cautious about opening sensitive sectors — particularly artificial intelligence and defense — to Chinese banks, wary of straining ties with Washington that have enabled them to make progress on both fronts. Last year, the US approved the sale of advanced AI semiconductor chips to both countries, bolstering their high-tech ambitions, while also authorizing an estimated $3.5 billion weapons deal for Saudi Arabia.

The UAE and Saudi Arabia are also among countries that have made hundreds of billions of dollars in investment pledges to the US, though questions have been raised about those commitments.

Trade Expansion

China is growing its financial footprint during an era of disruption in global trade as the tariff war started by US President Donald Trump reshapes commerce. Just as the world’s biggest manufacturing nation has started to export more to the Gulf, it’s also ramped up purchases of oil after Saudi Arabia cut prices to their lowest in five years.

In 2024, China overtook the West as the Gulf’s largest trading partner, with volumes hitting $257 billion — a historic milestone, according to a November report from think tank, Asia House. That figure could rise to $375 billion in 2028, the report said.

Gulf borrowers are also increasingly seeking financing in Chinese yuan to facilitate trade. Last year, the government of one of the emirates that make up the UAE secured its first-ever 1.78 billion-yuan ($255 million) syndicated loan, according to people familiar with the matter. Saudi National Bank and Abu Dhabi National Oil Co. are also considering so-called dim sum bonds, while Arab Energy Fund plans to raise panda notes of as much as 10 billion yuan.

Dim sum and panda bonds are both denominated in Chinese yuan. The former is issued offshore to international investors, while the latter is launched within China by foreign entities, primarily targeting the domestic market.

These developments have prompted repeated trips by Chinese bankers to strengthen cooperation with regional counterparts, according to at least half a dozen bankers who spoke to Bloomberg News on the condition of anonymity. These visits are also driven by their need to drum up more business overseas to offset strains at home, where a prolonged property crisis has weighed on the financial industry, they said.

China's Trade With the Gulf Surpassed that of the West

The trade gap is only expected to widen by some $75 billion in 2028

Source: IMF, Asia House estimates for 2028

At the same time, Chinese lenders are following their clients into the Gulf. Solar firms such as Jinko Solar Co. and TCL Zhonghuan Renewable Energy Technology Co. are planning manufacturing plants in Saudi Arabia, with more set to follow — creating fresh demand for financing.

The growing trade relationship between China and the Gulf, coupled with a rise in Chinese firms setting up factories in the region “gives the ties more substance,” said Simon Williams, chief economist for Central & Eastern Europe, Middle East and Africa at HSBC Holdings Plc.

Against that backdrop, Gulf borrowers offer what Chinese banks need: investment-grade deals with relatively low risk but higher yields than comparable Asian credits.

Recent examples include Riyad Bank SJSC, which closed a five-year loan offering a margin of 90 basis points over the benchmark Secured Overnight Financing Rate. In contrast, South Korea’s Shinhan Card is paying just 80 basis points on its recent five-year facility. The former entity is rated A1 by Moody’s Ratings and A by S&P Global Ratings, while the latter is rated A2 and A-, respectively.

Bill Gates’ VC Fund Leads $110 Million Funding for Chip Upstart - Bloomberg #AramcoVentures #SaudiArabia

Bill Gates’ VC Fund Leads $110 Million Funding for Chip Upstart - Bloomberg

Bill Gates’ VC fund, Microsoft Corp.’s investment arm and Saudi Arabia’s Aramco Ventures are investing $110 million in Neurophos Inc., a chip company that aims to develop a new technology capable of outperforming accelerators used to run AI models.

The funding round was led by Gates Frontier, the venture investment arm of Microsoft’s co-founder, the company told Bloomberg News. Microsoft’s venture unit, M12, also participated in the round along with Aramco Ventures, the venture arm of Saudi Arabia’s state-owned oil producer. Other investors included Bosch Ventures, Tectonic Ventures and Space Capital.

Austin-based Neurophos is developing what it calls an optical processing unit, or OPU. It’s a chip that’s made up of one million micron-scale optical processing elements that rely on photons or light to transmit data. The more conventional graphics processing unit, or GPU, used for training and running AI models relies on electrons, or simply electricity, to transmit data.

The market for chips that train and run AI models is dominated by Nvidia Corp., which has a market capitalization of more than $4 trillion. There are multiple companies chasing it, with technology pitched as better specifically for running the models as opposed to training them. Those include players like Advanced Micro Devices Inc. as well as Cerebras Systems Inc., which is in talks to raise fresh funds at a $22 billion valuation, Bloomberg reported last week.

Neurophos claims its technology will provide 100 times more performance and energy efficiency than current leading chips.

Major Gulf markets track global shares higher | Reuters

Major Gulf markets track global shares higher | Reuters

Most stock markets in the Gulf closed higher on Thursday, in line with global shares, after U.S. President Donald Trump backed away from imposing tariffs on eight European countries, lifting global investor sentiment.

Trump's tariff threats, floated as leverage to seize Greenland, had fueled tensions and kept markets jittery this week, leading investors to treat the latest turn of events with some caution even as a sense of relief was evident.

The pan-European STOXX index (.STOXX), opens new tab up over 1% in early trading after Wednesday's initial reaction spurred Wall Street's (.SPX), opens new tab best day in two months.

Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.7%, with Al Rajhi Bank (1120.SE), opens new tab rising 3.1% and the country's biggest lender by assets Saudi National Bank (1180.SE), opens new tab up 2.4%. Oil giant Saudi Aramco (2222.SE), opens new tab concluded 1% higher.

The kingdom's crude oil exports hit their highest level in more than two-and-a-half years in November, data from the Joint Organizations Data Initiative showed on Wednesday.

The improved external environment allowed the market to pivot its focus to the fourth-quarter earnings season, keeping optimism high and maintaining a dominant "risk-on" mood, said Joseph Dahrieh, managing director at Tickmill.

Dubai's main share index (.DFMGI), opens new tab climbed 1.5%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab gaining 2.4%.

In Abu Dhabi, the index (.FTFADGI), opens new tab was up 1%, buoyed by a 1.2% gain in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab following a rise in fourth-quarter profit.

According to Dahrieh, the Abu Dhabi market has the potential to continue higher, backed by solid fundamentals; oil price volatility remains a key risk factor to watch.

The Qatari index (.QSI), opens new tab rose 1.1%, led by a 3.1% rise in Qatar Islamic Bank (QISB.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.9% higher.