Middle Eastern firms are experiencing a “golden era”: That’s according to JPMorgan’s European chief, who told Bloomberg this week that volatility in other parts of the world is working out well for Gulf companies. Global headwinds are pushing more money and talent into the region, bringing a “golden era for attracting both attention and investment that is here to stay,” Viswas Raghavan told the news outlet in an interview.

“It really is the moment of the Middle East. We have seen liquidity migrate to the Middle East. You’re seeing a real kind of swagger as countries like Saudi Arabia, UAE, Qatar, all of which are pretty well positioned both for attracting money managers and hedge funds, see their own domestic economies becoming mainstream,” he said.

World Bank downgrades Asia’s economic growth outlook as stresses on the Chinese economy pull the region down: GDP growth in Asia is predicted to dip to 4.5% for the coming year, below the World Bank’s previous 4.8% projection made in April and down on the 2023 projection of 5%, according to World Bank figures (pdf). However, excluding China, the region’s growth is projected to modestly increase to 4.7% in 2024 from 4.6% in 2023 on the back of a recovery in global growth. The crises in China’s property sector coupled with a fall in global demand has taken its toll on China, nudging the World Bank to project a reduced projection of 4.4% for next year, below its April projection of 4.8% and down from the 5.1% expected to be achieved in 2023.

The region’s “next big key to growth”: Turning the region’s economic fortunes around will come from diversifying away from the hitherto prosperous areas of trade and investment in manufacturing, a World Bank economist told the Financial Times. The importance of diversifying beyond manufacturing comes as new US legislation, such as the Inflation Reduction Act and the Chips and Science Act, has boosted US manufacturing and reduced dependence on China. Additionally, weaker global demand has led to lower goods export figures in China and other major Asian economies. After US President Joe Biden introduced these protectionist policies, electronics and machinery exports also fell in Indonesia, Vietnam, Philippines, Malaysia, and Thailand.

EGX30

19,707

-1.0% (YTD: +35.0%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

10,952

-0.5% (YTD: +4.5%)

ADX

9,839

+0.5% (YTD: -3.6%)

DFM

4,202

+0.5% (YTD: +26.0%)

S&P 500

4,229

-1.4% (YTD: +10.2%)

FTSE 100

7,470

-0.5% (YTD: +0.3%)

Euro Stoxx 50

4,095

-1.0% (YTD: +8.0%)

Brent crude

USD 91.05

+0.4%

Natural gas (Nymex)

USD 2.94

+3.5%

Gold

USD 1,839.10

-0.4%

BTC

USD 27,391

-1.7% (YTD: +65.5%)

THE CLOSING BELL-

The EGX30 fell 1.0% at yesterday’s close on turnover of EGP 1.6 bn (26.2% below the 90-day average). Local investors were net sellers. The index is up 35.0% YTD.

In the green: EFG Holding (+1.3%), Fawry (+1.1%) and ADIB (+0.9%).

In the red: Alexandria Mineral Oils (-7.9%), Orascom Development (-5.3%) and Ezz Steel (-4.6%).

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