Dubai Property CEO Expects Supply of New Homes to Moderate - Bloomberg
The chief executive officer of Dubai’s Union Properties PJSC expects surging construction and land costs to put the brakes on the supply of new homes in the emirate’s booming real-estate market.
“The market is going to regulate itself over the coming two years, just by the inflation and construction costs and inflation in land value,” said Amer Khansaheb, the CEO of Union Properties, a small publicly traded developer in the emirate that has seen its stock surge over the past two years. “This should be good for investors because as supply comes down a bit, it will regulate the demand.”
Dubai property prices have had one of their best streaks in decades. Home prices surged more than 75% since the end of November 2020, according Knight Frank. Developers have been launching a steady stream of projects amid rising demand from oversees investors and an influx of new residents coming from around the world. However, the surge in supply is fueling fears of a possible property market slowdown in 2027 as many of the new developments get completed.
Dubai may find itself with an annual surplus of 30,000 to 40,000 housing units by 2027, according to Bloomberg Intelligence analyst Edmond Christou. That may signal price-adjustment risk even as rental yields remain attractive enough to draw investors and absorb some excess, he said in a report.
Union Properties will launch 2 billion dirhams ($545 million) worth of projects in 2026 to add to its existing pipeline which is worth 4 billion dirhams, the CEO said. Despite the five-year rally, developers’ profit margins “are not abnormal” and remain healthy, he said. He see opportunities in commercial, industrial and hospitality development going forward.
“Years ahead, the challenge will not come from demand but from supply-chain management. We’ve seen some inflation in the cost of construction,” the CEO said. “The challenge forward is to manage costs and manage supply chain to be able to deliver on quality and value to our clients.”
Union Properties’ shares lagged competitors amid probes into alleged financial violations within the company by former managers which required a lengthy restructuring of the operations. But it has now been catching up, with the stock more than doubling over the past year to about 0.83 dirhams, according to data compiled by Bloomberg.
Monday, 5 January 2026
#Dubai Private Equity Firm GII Aims to Triple Assets to $10 Billion - Bloomberg
Dubai Private Equity Firm GII Aims to Triple Assets to $10 Billion - Bloomberg
Gulf Islamic Investments has emerged as one of the Middle East’s most prolific homegrown private equity firms, deploying more than $1 billion over the past four years even as global buyout giants muscled in on its home turf. Now, the Dubai-based firm is pushing for scale and aims to triple assets under management to $10 billion by the end of the decade.
To support that push, GII is exploring ways to boost its coffers by up to $400 million in the short term through a capital raise and the issuance of Islamic debt, co-founder Mohammed Alhassan said.
To bulk up, the firm has also explored acquiring a rival financial company and has held early discussions with a regional shariah-compliant mortgage provider, Alhassan said, declining to give more details. It’s also eying an initial public offering by the end of the decade.
“Our aim is to become the Blackstone of the Middle East,” Alhassan said, referring to the world’s largest alternative asset manager, which oversees more than $1 trillion. A key element of GII’s pitch, he said, is its ability to act as a conduit for overseas investors to access regional deal flow.
That gives the firm an edge at a time when the region has become a hub for global private equity.
KKR & Co., Permira and Brookfield Asset Management have all expanded operations and pursued deals in the Middle East, which was long viewed as a source of capital rather than an attractive investment destination. There’s competition, too, from local rivals including Gulf Capital, Affirma Capital and Fajr Capital.
The regional buyout sector appears to have turned the page following the 2018 collapse of the Abraaj Group. Once the Gulf’s largest private equity firm with about $9 billion in assets, Abraaj’s downfall initially shattered investor confidence and severely constrained fundraising for domestic firms.
While regional private equity deal volume declined in the first half of 2025, according to data platform Magnitt, Saudi Arabia and the United Arab Emirates are defying global macroeconomic uncertainty, with a growing proportion of transactions exceeding $500 million.
GII was founded in 2014 with about $5 million in capital by Alhassan, previously a director at Bahrain’s Gulf Finance House, and Pankaj Gupta, a former banker at Abu Dhabi’s largest lender.
The shariah-compliant alternative asset management group is partly owned by its two co-founders. Other backers include the Saudi Al Nahdi and Al Tamimi merchant families, SNB Capital, one of the kingdom’s largest asset managers, and Shurooq, Sharjah’s investment and development authority.
The firm primarily offers private equity, including real estate, private credit and debt opportunities. Just over half of its investors are institutional, a majority of whom are from the Gulf, Alhassan said.
It operates across the Gulf’s three main financial hubs — Abu Dhabi, Dubai and Riyadh — cities that have attracted international financial firms seeking access to fast-growing markets and tax-friendly jurisdictions.
GII typically co-invests 20% to 30% in its deals, securing the remaining commitment from its clients. “I’m providing services for all of the high net worth individuals, big institutions, sovereigns, pension funds, who want to participate in a very tailored, customized product,” Alhassan said.
The firm has already worked alongside some of the global investors it hopes to rival.
It sold a controlling stake in its logistics business to Brookfield and also participated in a consortium led by the alternatives giant that invested in the region’s largest school operator.
Other high-profile deals include the 2022 purchase of a digital trade bank from Abu Dhabi’s sovereign wealth fund Mubadala Investment Co. That year, it also acquired a majority stake in Saudi Arabia’s largest provider of dental and dermatology care.
GII is now looking to take a minority stake of around $180 million in Hotpack, one of the Middle East’s largest industrial packaging firms, Alhassan said. Elsewhere, the firm plans to raise a private debt fund in Saudi Arabia of around $250 million.
In all, GII expects to finalize and announce two to three deals in the first quarter of 2026 alone, according to co-founder Gupta. “Opportunities abound here for those who know the market well, despite intense competition for the best private equity targets,” he said in a separate interview.
Beyond the region, GII has taken a 51% stake in UK-based shariah-compliant finance startup Offa and is considering an exit from an Indian pharmaceutical investment, which Alhassan expects to complete in the first quarter of 2026.
As GII sets its sights beyond the Middle East, partnerships will be critical.
“When we go, for example, to the US or somewhere else, we need to work with the big boys to penetrate the market,” Alhassan said. “Because even if you have a lot of money, you will not be able to penetrate without a track record.”
Gulf Islamic Investments has emerged as one of the Middle East’s most prolific homegrown private equity firms, deploying more than $1 billion over the past four years even as global buyout giants muscled in on its home turf. Now, the Dubai-based firm is pushing for scale and aims to triple assets under management to $10 billion by the end of the decade.
To support that push, GII is exploring ways to boost its coffers by up to $400 million in the short term through a capital raise and the issuance of Islamic debt, co-founder Mohammed Alhassan said.
To bulk up, the firm has also explored acquiring a rival financial company and has held early discussions with a regional shariah-compliant mortgage provider, Alhassan said, declining to give more details. It’s also eying an initial public offering by the end of the decade.
“Our aim is to become the Blackstone of the Middle East,” Alhassan said, referring to the world’s largest alternative asset manager, which oversees more than $1 trillion. A key element of GII’s pitch, he said, is its ability to act as a conduit for overseas investors to access regional deal flow.
That gives the firm an edge at a time when the region has become a hub for global private equity.
KKR & Co., Permira and Brookfield Asset Management have all expanded operations and pursued deals in the Middle East, which was long viewed as a source of capital rather than an attractive investment destination. There’s competition, too, from local rivals including Gulf Capital, Affirma Capital and Fajr Capital.
The regional buyout sector appears to have turned the page following the 2018 collapse of the Abraaj Group. Once the Gulf’s largest private equity firm with about $9 billion in assets, Abraaj’s downfall initially shattered investor confidence and severely constrained fundraising for domestic firms.
While regional private equity deal volume declined in the first half of 2025, according to data platform Magnitt, Saudi Arabia and the United Arab Emirates are defying global macroeconomic uncertainty, with a growing proportion of transactions exceeding $500 million.
GII was founded in 2014 with about $5 million in capital by Alhassan, previously a director at Bahrain’s Gulf Finance House, and Pankaj Gupta, a former banker at Abu Dhabi’s largest lender.
The shariah-compliant alternative asset management group is partly owned by its two co-founders. Other backers include the Saudi Al Nahdi and Al Tamimi merchant families, SNB Capital, one of the kingdom’s largest asset managers, and Shurooq, Sharjah’s investment and development authority.
The firm primarily offers private equity, including real estate, private credit and debt opportunities. Just over half of its investors are institutional, a majority of whom are from the Gulf, Alhassan said.
It operates across the Gulf’s three main financial hubs — Abu Dhabi, Dubai and Riyadh — cities that have attracted international financial firms seeking access to fast-growing markets and tax-friendly jurisdictions.
GII typically co-invests 20% to 30% in its deals, securing the remaining commitment from its clients. “I’m providing services for all of the high net worth individuals, big institutions, sovereigns, pension funds, who want to participate in a very tailored, customized product,” Alhassan said.
The firm has already worked alongside some of the global investors it hopes to rival.
It sold a controlling stake in its logistics business to Brookfield and also participated in a consortium led by the alternatives giant that invested in the region’s largest school operator.
Other high-profile deals include the 2022 purchase of a digital trade bank from Abu Dhabi’s sovereign wealth fund Mubadala Investment Co. That year, it also acquired a majority stake in Saudi Arabia’s largest provider of dental and dermatology care.
GII is now looking to take a minority stake of around $180 million in Hotpack, one of the Middle East’s largest industrial packaging firms, Alhassan said. Elsewhere, the firm plans to raise a private debt fund in Saudi Arabia of around $250 million.
In all, GII expects to finalize and announce two to three deals in the first quarter of 2026 alone, according to co-founder Gupta. “Opportunities abound here for those who know the market well, despite intense competition for the best private equity targets,” he said in a separate interview.
Beyond the region, GII has taken a 51% stake in UK-based shariah-compliant finance startup Offa and is considering an exit from an Indian pharmaceutical investment, which Alhassan expects to complete in the first quarter of 2026.
As GII sets its sights beyond the Middle East, partnerships will be critical.
“When we go, for example, to the US or somewhere else, we need to work with the big boys to penetrate the market,” Alhassan said. “Because even if you have a lot of money, you will not be able to penetrate without a track record.”
#SaudiArabia’s Dollar Bond Draws Over $29 Billion of Demand - Bloomberg
Saudi Arabia’s Dollar Bond Draws Over $29 Billion of Demand - Bloomberg
Saudi Arabia is kicking off 2026 with a benchmark-sized dollar bond sale, drawing more than $29 billion of bids as it taps global markets to help fund huge projects aimed at reducing its economic dependence on oil.
The kingdom has set pricing terms on four tranches with maturities ranging from three to 30 years, according to a person familiar with the matter. The strong demand means it can offer a smaller spread over US Treasuries than initially indicated: the level on the three-year bond is set at 65 basis points over the benchmark rate, the five-year at 75 basis points, the 10-year at 85 basis points and the 30-year at 110 basis points.
That’s 30 basis points less than the initial price thoughts for both the three-year note and the longest tranche while pricing was tightened by 25 basis points for the other tenors.
Demand is strongest at the long end, with the 30-year bond attracting more than $8.4 billion of orders, the person said. The 10-year has drawn over $8.2 billion, the five-year more than $6.8 billion and the three-year over $5.7 billion.
Earlier this month, the Ministry of Finance approved borrowing plans that imply about $14 billion to $17 billion of issuance in international bond markets this year. At the upper end, that would be below 2025 levels, while the lower end would mark the smallest amount since 2022.
Still, Saudi Arabia has a history of overshooting its funding targets. Goldman Sachs Group Inc. has predicted the Saudis will issue a record $25 billion of international debt this year, and sees the country’s fiscal deficit being 6% of gross domestic product, far higher than the government’s target of 3.3%.
Saudi Arabia’s Ministry of Finance closed a $13 billion dollar loan late last year. The proceeds will be used for infrastructure projects and the facility carries a seven-year tenor. The loan was heavily marketed to Chinese banks, according to people familiar with the matter.
The loan deal was the latest in a series of transactions that have seen Saudi Arabia tap the Asian market for liquidity to diversify its funding sources. Asian banks are keen to lend amid a shortage of transactions at home. Loan volumes in Asia, excluding Japan, in dollars, euros and yen fell to a five-year low in 2025, according to data compiled by Bloomberg.
Saudi Arabia is kicking off 2026 with a benchmark-sized dollar bond sale, drawing more than $29 billion of bids as it taps global markets to help fund huge projects aimed at reducing its economic dependence on oil.
The kingdom has set pricing terms on four tranches with maturities ranging from three to 30 years, according to a person familiar with the matter. The strong demand means it can offer a smaller spread over US Treasuries than initially indicated: the level on the three-year bond is set at 65 basis points over the benchmark rate, the five-year at 75 basis points, the 10-year at 85 basis points and the 30-year at 110 basis points.
That’s 30 basis points less than the initial price thoughts for both the three-year note and the longest tranche while pricing was tightened by 25 basis points for the other tenors.
Demand is strongest at the long end, with the 30-year bond attracting more than $8.4 billion of orders, the person said. The 10-year has drawn over $8.2 billion, the five-year more than $6.8 billion and the three-year over $5.7 billion.
Earlier this month, the Ministry of Finance approved borrowing plans that imply about $14 billion to $17 billion of issuance in international bond markets this year. At the upper end, that would be below 2025 levels, while the lower end would mark the smallest amount since 2022.
Still, Saudi Arabia has a history of overshooting its funding targets. Goldman Sachs Group Inc. has predicted the Saudis will issue a record $25 billion of international debt this year, and sees the country’s fiscal deficit being 6% of gross domestic product, far higher than the government’s target of 3.3%.
Saudi Arabia’s Ministry of Finance closed a $13 billion dollar loan late last year. The proceeds will be used for infrastructure projects and the facility carries a seven-year tenor. The loan was heavily marketed to Chinese banks, according to people familiar with the matter.
The loan deal was the latest in a series of transactions that have seen Saudi Arabia tap the Asian market for liquidity to diversify its funding sources. Asian banks are keen to lend amid a shortage of transactions at home. Loan volumes in Asia, excluding Japan, in dollars, euros and yen fell to a five-year low in 2025, according to data compiled by Bloomberg.
Most Gulf markets ease on weak oil prices | Reuters
Most Gulf markets ease on weak oil prices | Reuters
Most Gulf equities ended lower on Monday, under pressure from a fall in oil prices as investors balanced expectations of oversupply against the disruptive impact of political tensions.
Brent crude futures were down 23 cents, or 0.4%, to $60.52 a barrel at 0940 GMT as market analysts took the view the U.S. capture of President Nicolas Maduro of Venezuela, home of the biggest global oil reserves, would have little immediate impact on available supplies of crude.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, extending losses from the previous session's 1.8% fall. ACWA Power Co (2082.SE), opens new tab dropped 4.7%, while oil giant Saudi Aramco (2222.SE), opens new tab slipped 0.4%.
Regional tensions and a bearish outlook for oil prices in 2026 weakened market sentiment. However, healthy growth in the non-oil economy, the prospect of monetary easing in 2026, and upcoming fourth-quarter earnings releases may provide the catalysts needed for a rebound, Joseph Dahrieh, managing director at Tickmill, said.
NON-OIL PRIVATE BUSINESS GROWS
The kingdom's non-oil private business sector remained in growth territory in December, though expansion slowed to a four-month low and new order growth decelerated, a survey released on Monday found.
Dubai's main share index (.DFMGI), opens new tab edged 0.3% higher, helped by a 2.1% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
The Dubai market remains backed by solid fundamentals and healthy economic growth projections for 2026, Dahrieh said, while adding geopolitics could continue to weigh.
In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.5%.
The Organization of the Petroleum Exporting Countries and allies kept oil output unchanged on Sunday after a quick meeting that avoided discussing the political crises affecting several of the producer group's members.
The Qatari benchmark (.QSI), opens new tab rose 1.7%, and all its constituents were in positive territory, including the Gulf's biggest lender, Qatar National Bank (QNBK.QA), opens new tab, which gained 2.2%.
Egypt and Qatar signed a memorandum of understanding to boost cooperation in LNG sales and imports, including terms for supplying Qatari shipments to Egypt's Ain Sokhna and Damietta ports, Egypt's petroleum ministry said on Sunday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded 0.5% lower, with Telecom Egypt (ETEL.CA), opens new tab retreating 2%.
Most Gulf equities ended lower on Monday, under pressure from a fall in oil prices as investors balanced expectations of oversupply against the disruptive impact of political tensions.
Brent crude futures were down 23 cents, or 0.4%, to $60.52 a barrel at 0940 GMT as market analysts took the view the U.S. capture of President Nicolas Maduro of Venezuela, home of the biggest global oil reserves, would have little immediate impact on available supplies of crude.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, extending losses from the previous session's 1.8% fall. ACWA Power Co (2082.SE), opens new tab dropped 4.7%, while oil giant Saudi Aramco (2222.SE), opens new tab slipped 0.4%.
Regional tensions and a bearish outlook for oil prices in 2026 weakened market sentiment. However, healthy growth in the non-oil economy, the prospect of monetary easing in 2026, and upcoming fourth-quarter earnings releases may provide the catalysts needed for a rebound, Joseph Dahrieh, managing director at Tickmill, said.
NON-OIL PRIVATE BUSINESS GROWS
The kingdom's non-oil private business sector remained in growth territory in December, though expansion slowed to a four-month low and new order growth decelerated, a survey released on Monday found.
Dubai's main share index (.DFMGI), opens new tab edged 0.3% higher, helped by a 2.1% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
The Dubai market remains backed by solid fundamentals and healthy economic growth projections for 2026, Dahrieh said, while adding geopolitics could continue to weigh.
In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.5%.
The Organization of the Petroleum Exporting Countries and allies kept oil output unchanged on Sunday after a quick meeting that avoided discussing the political crises affecting several of the producer group's members.
The Qatari benchmark (.QSI), opens new tab rose 1.7%, and all its constituents were in positive territory, including the Gulf's biggest lender, Qatar National Bank (QNBK.QA), opens new tab, which gained 2.2%.
Egypt and Qatar signed a memorandum of understanding to boost cooperation in LNG sales and imports, including terms for supplying Qatari shipments to Egypt's Ain Sokhna and Damietta ports, Egypt's petroleum ministry said on Sunday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded 0.5% lower, with Telecom Egypt (ETEL.CA), opens new tab retreating 2%.
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