Most Gulf equities retreat on investor caution ahead of US-Iran talks | Reuters

Most Gulf equities retreat on investor caution ahead of US-Iran talks | Reuters

Gulf markets reversed early trends by the closing bell on Tuesday, as investors adopted a cautious stance in a volatile session ahead of a third round of US-Iran nuclear talks scheduled for Thursday.

Saudi Arabia's benchmark stock index (.TASI), opens new tab retreated 0.7% after a modest recovery in the prior session, as the kingdom's budget deficit widened quarter-on-quarter due to higher expenditures.

Losses were broad-based, with Saudi Telecom Company (7010.SE), opens new tab down 2.1% and Saudi Aramco (2222.SE), opens new tab shedding 0.5%.

Reuters reported, citing trade sources, that energy giant Aramco has sold several shipments of ultra-light crude oil from its $100 billion Jafurah gas plant to U.S. majors and an Indian refiner, ahead of its first export later this month.

The market is well-positioned to build on its strong fundamentals as external pressures ease, said Antoine Nadaf, Country Manager at Givtrade.

In Dubai, the main stock index (.DFMGI), opens new tab declined 0.6%, following a nearly 2% surge in the prior session. Weighed down by banking stocks, Emirates NBD Bank saw its sharpest one-day drop in nearly three months, tumbling over 4%, while Dubai Islamic Bank (DISB.DU), opens new tab retreated 1.6%.

Abu Dhabi's stock index ended flat, holding its ground after rebounding in the prior session from a two-day sell-off at record highs. ADNOC Gas (ADNOCGAS.AD), opens new tab edged down 0.3%, while Abu Dhabi Commercial Bank (ADCB.AD), opens new tab gained 0.3%, continuing Monday's advance.

Nadaf noted that Abu Dhabi market retains upside potential, backed by robust fourth-quarter results and solid economic projections, though oil price volatility remains a key watchpoint.

Oil prices, a key catalyst to gulf markets, hovered near seven-month highs, with traders assessing risks to supply from any military escalation as another round of U.S.-Iran nuclear talks loomed.

Qatar's stock index (.QSI), opens new tab added 0.1%, driven by banking shares. Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, gained 0.5%, extending momentum from its best daily performance since mid-October in the previous session.

U.S.-based private credit investment firm 5C Investment Partners announced a strategic partnership with the Qatar Investment Authority to expand its direct lending platform.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab slipped 0.9% with a sell-off led by banking stocks. Commercial International Bank (COMI.CA), opens new tab, the country's largest private lender, fell 1.3%.

Talaat Moustafa Group (TMGH.CA), opens new tab declined 1.6%, reversing gains from the previous session, after the real estate developer reported a 43% rise in full-year profits on Monday and secured a promotion to the mid cap segment of the FTSE Russell Global Equity Index Series.

The International Monetary Fund said its board would meet on February 25 to review Egypt's Extended Fund Facility programme, a move that could unlock $2.3 billion in disbursements.

Exclusive: #Kuwait's KPC draws BlackRock, Brookfield, EIG to possible $7 billion pipeline deal, sources say | Reuters

Exclusive: Kuwait's KPC draws BlackRock, Brookfield, EIG to possible $7 billion pipeline deal, sources say | Reuters

National oil company Kuwait Petroleum Corporation (KPC) has held early stage talks with a large group of potential investors over a $7 billion stake sale in its crude oil pipelines, three sources familiar with the matter said, following similar moves by Gulf peers Saudi Arabia and the United Arab Emirates.

BlackRock, Brookfield Asset Management, EIG Partners and buyout group KKR are among those that have shown interest, the sources said. Also showing interest are Chinese state enterprises China Silk Road Fund and China Merchants Capital, along with I Squared Capital and Macquarie Infrastructure Partners, the sources said.

The transaction is structured with around $1.5 billion in equity and the remainder financed through debt, the three sources said.

Sheikh Nawaf Saud Al-Sabah, KPC's deputy chairman and chief executive, is leading a steering committee overseeing the process, which sources described as being managed with close, hands-on oversight, with the committee convening every few weeks to monitor progress.

"We are studying the possibility of leasing and re-leasing (oil) pipelines in the country," Al-Sabah told reporters in September. "The pipelines are assets owned by KPC and do not generate direct financial returns. If there is an opportunity to secure additional financing through these assets... then welcome," he added.

BlackRock, Brookfield, Macquarie, KKR, EIG, I Squared declined to comment. KPC, China Silk Road Fund and China Merchants Capital did not respond to requests for comment.

KPC is now approaching other banks to join HSBC in underwriting the debt portion of the deal, two of the sources said.

Two of the sources said that the process to formally launch the oil pipeline network stake sale could start as soon as the end of this month, as Reuters reported last month.

The concession, said to span 25 years according to the sources, faces a testing backdrop. Crude oil hovering around $71 per barrel is weighing on projected volumes and returns, with geopolitical tensions in the Gulf region presenting an additional layer of complexity, one of the sources said.

The move echoes deals in recent years by Saudi Aramco, opens new tab, Abu Dhabi National Oil Company and Bahrain's Bapco Energies to raise funds from their pipeline infrastructure networks. Such deals provide upfront cash in return for tariff payments over time.

Kuwait Petroleum Corp in late 2023 said it will spend $410 billion through 2040 on a strategy,, opens new tab that aims to boost production capacity to 4 million barrels per day.

BlackRock, which last year signed a similar deal for Aramco's Jafurah gas project processing facilities in Saudi Arabia, will open an office in Kuwait and has appointed Ali AlQadhi to lead operations in the country, Kuwait's state news agency said in September.