Latest news with #MideastMoney
Bloomberg
06-08-2025
- Business
- Bloomberg
Aramco Sheds Over $800 Billion in Market Value From 2022 Peak
Welcome to the Mideast Money newsletter, I'm Adveith Nair. Join us each week as my team and I chronicle the intersection of money and power in a region that's become one of the most influential in global finance. You can sign up here. This week: a Middle Eastern wealth fund plans to offload $1.2 billion in legacy assets; Bahrain backs a private equity newcomer; and Brookfield names a new Saudi chairman. But first, a look at how Aramco's share slide is deepening the kingdom's challenges.
Bloomberg
28-07-2025
- Business
- Bloomberg
Dubai-Style Luxury and Royal's Cash Underpin Africa Travel Boom
Welcome to the Mideast Money newsletter, I'm Adveith Nair. Join us each week as my team and I chronicle the intersection of money and power in a region that's become one of the most influential in global finance. You can sign up here. This week: The world's wealthy flock to the UAE despite rising regional risks, Qatar makes a new sporting play and Dubai's financial hub hits record growth. But first, over to Prinesha Naidoo for a look at how Middle Eastern capital is powering Africa's travel boom.
Malaysian Reserve
25-06-2025
- Business
- Malaysian Reserve
Dubai and Abu Dhabi's haven status tested by Mideast crisis
THE United Arab Emirates has managed to thrive during global instability, drawing capital during the Arab Spring, opening up quickly during the pandemic and attracting Russian money after Moscow's invasion of Ukraine. But the Iran-Israel confrontation, which involved the US, poses one of the most stringent tests yet to the country's neutral and open-for-business stance. By Tuesday morning, just hours after Iran hit a US base in nearby Qatar and the UAE briefly closed its airspace, it was already business as usual in the financial centers of Dubai and Abu Dhabi. An executive at one of Abu Dhabi's wealth funds said it was proceeding as planned with deals and investments, even encouraging foreign executives to visit for meetings. In Dubai, bankers were quick to relay optimism that the UAE would sidestep any major fallout. But while a ceasefire announced by US President Donald Trump appears to be holding, some executives acknowledge an undercurrent of nervousness because the geopolitical risks of the Middle East have come so sharply to the fore. The stakes for the global financial community are particularly high in the UAE, which has attracted international billionaires looking to safeguard their wealth as well as Wall Street banks and hedge funds looking to expand. Abu Dhabi has been on a dealmaking spree with its $1.7 trillion sovereign wealth pile. Meanwhile, Dubai's property prices have surged 70% over four years propelled by buyers from around the world. 'I think the current situation is contained. But what happened is significant — it's a signal that no action is off-limits anymore,' said Hussein Nasser-Eddin, chief executive of Dubai-based security services provider Crownox, referring to the attack in Qatar, which like the UAE is a long-time ally of the US. Nasser-Eddin said his firm — which provides travel security, protective and risk advisory services — has seen a rise in contingency planning requests in the Gulf in the last couple days. Companies have asked for details of Crownox's cross-border capabilities, essentially wanting to know if it could 'save the day' if things went wrong, he said. Even such lingering concerns haven't been enough to deter those investing or living in the UAE. More than a dozen bankers, hedge fund and sovereign wealth fund executives interviewed by Bloomberg News said they haven't seen signs of capital flight or firms considering a pullback. They asked not be named because they weren't authorized to speak to the media. Get the Mideast Money newsletter, a weekly look at the intersection of wealth and power in the region. UAE stocks, which sank at the outbreak of the Israeli strikes on Iran, have not just recouped those losses but scaled new highs in tandem with US stocks. Dubai's equity benchmark is trading almost 3% higher than before the conflict, reaching the highest level since the 2008 global financial crisis. Abu Dhabi's index has added more than 1% and is at the highest since January. Both indexes are rising faster than the global benchmark MSCI ACWI. 'I believe that the safe-haven status will continue, the macro story remains robust and the reform program compelling. We continue to expect capital and population inflows in the medium-term,' Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC, said about the UAE. 'The fact that there were no economic disruptions and the ceasefire are positive.' Historically, Dubai has benefitted from periods of unrest not just regionally but elsewhere too. Most recently, after the invasion of Ukraine in 2022, some Russians bought Dubai real estate. Property prices have been shooting up since the pandemic. Still, the emirate's population is largely made of expatriates and any pullback from them would also dent the housing market, which makes up more than a third of the city's gross domestic product. 'We had a period of 48 hours where buyers were reluctant to pull the trigger,' said Myles Bush, chairman of brokerage Phoenix Homes. 'However, now it's business as usual and buyer confidence has bounced back.' While market sentiment hasn't been affected so far, a resumption of hostilities may shake confidence, said Anna Kirichenko, a property broker who has worked in Dubai since 2007. There is also the potential for other economic fallout. Despite airspace closures ending and the ceasefire, several global airlines are still avoiding Dubai to ensure the safety of crew and passengers amid geopolitical tensions. Among them are Singapore Airlines, Air India Ltd. and United Airlines Holdings Inc. The aviation sector supported 27% of Dubai's GDP in 2023, according to a report by Emirates, contributing nearly $40 billion to the city's economy. Dubai and Abu Dhabi have in recent years attracted expatriates and financial firms partly because of the UAE's easy visa policies, low taxes and convenient time zone between East and West. The regulator for Dubai's financial center said it had contacted a number of firms, who reported normal business activity. A management consultant said it would take a far more devastating strike — such as one on a population center — to derail the UAE's haven status and its internationalization drive. IPO bankers in the UAE have said that their post-summer pipeline hasn't been affected by the geopolitical turmoil. Even in nearby Doha, the capital of Qatar, one banker said work had resumed as if the attack on the US base had never taken place. To be sure, plenty of risks remain. Even after the truce was announced, there appeared to be early breaches by both sides that caused Trump to issue angry warnings. US intelligence findings have also shown that American air strikes had only a limited impact on Iran's nuclear program, while Trump has maintained the sites were completely destroyed. Still, executives were reassured because Iran appeared to have provided warnings before the attack and the UAE — which also houses US military personnel — wasn't targeted. The chain of events suggests that officials in the Gulf had been able to manage the crisis from behind the scenes, one Dubai-based portfolio manager said. Ken Moelis, the veteran Wall Street dealmaker with close ties to the Middle East, characterized turbulence in the region as an opportunity for one of the most optimistic changes in the Gulf for a long time. He highlighted opportunities such as the potential impact of unlocking Iranian oil reserves and opening up the country's labor market, assuming sanctions are lifted. 'All I hear about is what if the peace doesn't hold,' Moelis said in an interview on Bloomberg Television Wednesday. 'I haven't heard one person say, 'What if the 90 million population of highly educated motivated Iranians come into the market?'' –BLOOMBERG
Gulf Insider
08-05-2025
- Business
- Gulf Insider
Qatar Bets On Sports To Hit 2030 Tourism Goal Ahead Of Schedule
Qatar spent billions of dollars preparing for the 2022 World Cup, betting that the global spotlight would spark a lasting tourism boom. Three years on, that gamble appears to be paying off. International tourist arrivals surged to 5.1 million last year, up 25 per cent from 2023. Nearly 2 million people have visited Qatar so far this year, fueling optimism among tourism officials that the gas-rich nation could surpass its targets ahead of schedule. 'Our target for 2030 was 6 to 7 million visitors, but I think we will achieve this number sooner,' said Abdulaziz Ali Al Mawlawi, chief executive officer of Visit Qatar, in an interview in Dubai last week. To help edge up numbers, the country aims to position itself as the 'capital of sports,' he said. Over the next few months, Qatar is set to hold events including the the biggest-ever edition of the Fifa U-17 World Cup, the 2025 Fifa Arab Cup, and the Formula 1 Grand Prix at Lusail International Circuit. 'We'll be announcing a very big event for late November in Doha,' Al Mawlawi said, declining to give further details other than that it would be a global one. The rise in visitor numbers could also help the Gulf nation reach its goal of having tourism contribute about 12% to gross domestic product '- potentially ahead of the 2030 target, he said. Get the Mideast Money newsletter, a weekly look at the intersection of wealth and power in the region. While major sporting events have attracted thousands of fans, Qatar is aiming to position itself as a year-round destination by appealing to families seeking affordable luxury. 'It's very safe, very clean, with high-quality hotels and fine dining at reasonable prices,' Al Mawlawi said. Qatar is also expanding its hotel and resort offerings, with a focus on conference and events infrastructure. Doha currently has around 40,000 hotel rooms, with more in development. Still, the country faces stiff competition in the region. Dubai remains the Middle East's dominant tourism hub, while Abu Dhabi has committed $10 billion to expanding its cultural and hospitality footprint. Saudi Arabia aims to draw 70 million foreign visitors annually by 2030, up from about 30 million in 2024. Rather than compete directly, Qatar is promoting multi-stop itineraries, partnering with neighbors including Saudi Arabia and Abu Dhabi to create joint campaigns. 'We're complementing each other,' Al Mawlawi said. Gulf Cooperation Council nationals made up 41 per cent of arrivals last year, with Saudi Arabia as the top individual source market. Key international sources include the UK, US, China, India and Germany. Qatar has opened tourism offices in 13 countries to broaden its outreach. However, the growth in Chinese and Indian demand has been hurt by limited air connectivity. 'Flights from India to Qatar and China to Qatar are almost at the capacity,' Al Mawlawi said. 'So, we are trying hard to increase the capacity, to increase the landing slots in those countries.'
Bloomberg
05-05-2025
- Business
- Bloomberg
How Abu Dhabi's $1.7 Trillion Wealth Funds Collaborate — And Compete
Welcome to the Mideast Money newsletter, I'm Adveith Nair. Join us each week as my team and I chronicle the intersection of money and power in a region that's become one of the most influential in global finance. You can sign up here. This week: Mubadala Capital's rare stake sale, potential easing of AI chip curbs on the UAE and the Trump Organization's $20 million Dubai penthouses. But first, a spotlight on Abu Dhabi's newest wealth fund.
