Fund managers are banking on rosy third-quarter results to help improve sentiment that has soured quickly in recent weeks, putting pressure on Gulf stock markets.
Companies will begin to report their results for the third quarter this week. The numbers may give equities a small boost.
"We expect a positive continuation in third-quarter numbers, as we had in the second quarter," said Marwan Shurrab, the chief trader at Gulfmena Investments, an asset management company in Dubai.
In the UAE, banks are expected to outperform as local macroeconomic fundamentals improve, and transport should report strong earnings because of lower oil prices, said Tariq Qaqish, a fund manager at Al Mal Capital in Dubai.
Bank deposits exceeded loans for an 11th month in August, according to data published by the central bank on Thursday. Lending increased 0.5 per cent in August from July to Dh1.05 trillion, while deposits dropped 3.2 per cent to Dh1.07tn.
"The statistics show improved fundamentals, which would help banks grow and lend more with improved margins," said Mr Qaqish.
Global markets were affected last week by a drop in oil prices and concern about a slowdown in global economic growth stemming largely from the prolonged debt crisis in the euro zone.
The sell-off across markets started in August when deficit problems in Greece became more apparent, threatening to spread to the larger euro-zone economies of Spain and Italy. And Gulf markets continue to take their cues from the West.
"If between now and the fourth quarter it becomes clear that the global economy is facing a recession and problems in Europe are not resolved, it will drag on regional market performance," Mr Shurrab said.
The Abu Dhabi Securities Exchange General Indexslipped 0.1 per cent last week to 2,533.41 points, bringing the overall decline for the third quarter to 6.7 per cent. Dubai's main benchmark, the Dubai Financial Market General Index, fell 1 per cent to 1,431.71for the week, extending its decline for the quarter to 5.6 per cent. Qatar's QE Index was down 0.1 per cent to 8,393.92 last week.
Qatar National Bank, the country's largest bank by assets, and National Leasing, a consumer finance company, are expected to report third-quarter results on Wednesday.
In Egypt, new political developments and continued protests weighed on equities last week. The country's benchmark EGX 30 Index was down 3.1 per cent to 4,137.35 at the end of the week.
Barring political volatility, Egypt's stock market this week is expected to experience a flurry of activity arising from a rights issue, a meeting of shareholders to delist a company, a ruling in a court case and dividend payments to investors.
Subscription for Citadel Capital's 1.05bn Egyptian pound rights issue ends tomorrow. The Egyptian private equity company wants to raise its capital from 3.3 billion pounds to 4.4bn pounds by issuing 210 million shares at 5 pounds each.
Also tomorrow, Olympic Group is expected to hold its extraordinary general meeting to look into delisting from the Egyptian Exchange.
The appliance manufacturer was acquired by Sweden's AB Electrolux last month and now owns 98.33 per cent of the shares. Electrolux intends to offer remaining minority shareholders a continued opportunity to sell their shares in Olympic Group over the next 12 months.
On Tuesday, Egypt's administrative court should rule on a case involving the Madinaty project being built by Talaat Moustafa Group (TMG). The project has been mired in a legal row since the court said last year that the land on which it is built should have been sold at auction. The government revoked the original contract and returned the land to TMG under a new deal. The new contract is being disputed.
On Wednesday, Orascom Construction Industriesis to pay a dividend of US$1.10 per share.
Elsewhere in the region, Oman's measure was down 1 per cent last week to 5,602.29, and Kuwait's slipped 0.2 per cent to 5,833.10. The Saudi Tadawul All-Share Index rose 0.07 per cent yesterday to close at 6,116.71.
halsayegh@thenational.ae
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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
The years Ramadan fell in May
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The specs: 2019 Subaru Forester
Price, base: Dh105,900 (Premium); Dh115,900 (Sport)
Engine: 2.5-litre four-cylinder
Transmission: Continuously variable transmission
Power: 182hp @ 5,800rpm
Torque: 239Nm @ 4,400rpm
Fuel economy, combined: 8.1L / 100km (estimated)
Episode list:
Ep1: A recovery like no other- the unevenness of the economic recovery
Ep2: PCR and jobs - the future of work - new trends and challenges
Ep3: The recovery and global trade disruptions - globalisation post-pandemic
Ep4: Inflation- services and goods - debt risks
Ep5: Travel and tourism
Army of the Dead
Director: Zack Snyder
Stars: Dave Bautista, Ella Purnell, Omari Hardwick, Ana de la Reguera
Three stars
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Company profile
Company: Verity
Date started: May 2021
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Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
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