GCC sovereign wealth funds accounted for more than half of the value of all state-backed investments made so far this year, according to GlobalSWF. In 1H 2024, GCC funds including the Abu Dhabi Investment Authority (Adia), Saudi Arabia’s Public Investment Fund (PIF), and Qatar Investment Authority (QIA), backed some USD 52 bn worth of transactions — their largest share since 2009.

Oil revenues bolstered Abu Dhabi funds’ spending: Despite market volatility, Abu Dhabi’s funds, including Mubadala and ADIA, are “more active than ever,” buoyed by windfall from oil revenues, GlobalSWF Managing Director Diego Lopez said.

Leading the pack: Saudi Arabia’s PIF led investment activity globally, expanding its footprint through asset transfers aimed at diversifying the state’s funding sources beyond oil revenues.

In contrast to Middle Eastern funds’ robust momentum, global state-backed funds trimmed their spending. Asian funds such as Singapore’s GIC and Temasek scaled back their investments, a trend that has resulted in an overall decline in state-backed investment compared to 1H 2023.

Remember, 2023 was a big year for Gulf wealth funds: GlobalSWF named the GCC the “ region of the year ” on the back of USD 82.3 bn in investment activity in 2023, with assets under management of all GCC funds reaching USD 4.1 tn.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, with the Hang Seng leading the gainers (+1.5% at dispatch time) after taking yesterday off for a national holiday. The Kospi (-0.5%) leads the decliners. US equities futures were uniformly (but gently) in the red in overnight trading, while futures for major European benchmarks were largely flat.

EGX30

27,970

+0.7% (YTD: +12.4%)

USD (CBE)

Buy 48.21

Sell 48.34

USD (CIB)

Buy 48.20

Sell 48.30

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,659

-0.2% (YTD: -2.6%)

ADX

9,060

0.0% (YTD: -5.4%)

DFM

4,057

+0.7% (YTD: -0.1%)

S&P 500

5,475

+0.3% (YTD: +14.8%)

FTSE 100

8,167

0.0% (YTD: +5.6%)

Euro Stoxx 50

4,930

+0.7% (YTD: +9.0%)

Brent crude

USD 86.68

+2.0%

Natural gas (Nymex)

USD 2.48

-4.7%

Gold

USD 2,342.10

+0.1%

BTC

USD 63,250.60

+2.1% (YTD: +49.7%)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 3.4 bn (22.7% below the 90-day average). International investors were the sole net sellers. The index is up 12.4% YTD.

In the green: GB Corp (+9.9%), Palm Hills Development (+5.2%), and Juhayna (+4.7%).

In the red: AMOC (-2.1%), EFG Holding (-1.6%), and Delta Sugar (-0.9%).

CORPORATE ACTIONS-

Banque Misr now owns the majority of IDB: State-run lender Banque Misr has increased its stake in the Industrial Development Banque (IDB) to 85.04%, up from just 2%, by increasing the lender’s capital to EGP 5 bn, up from EGP 500 mn, Hapi Journal reports, citing courses it describes as informed.

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