TARIFF TURNAROUND

Gulf stocks recover after Trump hits pause on new trade tariffs

Oil prices continued to fall amid concerns that the U.S trade war with China – Saudi Arabia's biggest oil customer – will keep spiraling upward

FAYEZ NURELDINE/AFP via Getty Images

Saudi Arabia's Tadawul Stock Exchange in Riyadh

By

Jonathan H. Ferziger

April 10, 2025

Gulf stocks reversed direction in tandem with global equity markets after U.S. President Donald Trump declared a pause to his imposition of trade tariffs around the world.

Saudi Arabia’s benchmark Tadawul index rose 4% on Thursday, its biggest intraday increase in four years, Reuters reports. On Sunday, the index suffered its worst fall in almost five years following last week’s announcement of the U.S. tariffs.

Elsewhere in the region, Dubai’s main share index rebounded 2.6%, led by Emaar Properties’ 4.7% climb, while Abu Dhabi’s benchmark index rose 1.3% and Qatar stocks gained 2.1%.

Oil prices, on the other hand, continued to fall amid concerns that the U.S-China trade war will keep spiraling upward.

Trump raised the tariff rate for China – Saudi Arabia’s biggest oil customer – to 125% on Wednesday, up from his previously announced 104% percent tariff. China, meanwhile, announced an additional tariff of 84% on U.S. imports.

TROUBLED TIMES

Emirates’ Clark warns Trump tariffs threaten aviation industry

Sir Tim Clark, who has run the Middle East's biggest airline for two decades, says the Dubai-based carrier can weather disruption from U.S. action

GETTY IMAGES

Sir Tim Clark, President of Emirates Airline

By

Omnia Al Desoukie

April 9, 2025

Emirates President Sir Tim Clark, who has run the Middle East’s biggest airline for two decades, says the UAE carrier can handle the costs of new U.S. tariffs.

Still, Clark told CNBC in an interview that the Trump administration’s “trade reset” could disrupt global commerce, with China’s tariffs on U.S. aerospace firms potentially raising costs for Emirates’ wide-body fleet.

“Business models like Emirates, given the international scope of what it does, the strength of what it does, will be able to ride this particular wave,” he said.

Clark said the aviation industry, however, remains in “uncharted territory” as U.S. tariffs are expected to drive up airline costs. “Right now, we are in troubled times,” he said.

👋 Hello from the Middle East!

In the Daily Circuit today, we’re looking at ADIA’s $1 billion gas deal, Arabian Drilling’s new offshore platform, Emirates President Sir Tim Clark’s dark view of how U.S. tariffs will affect the aviation industry, and the UAE’s free-trade pact in Africa. But first, the PIF co-invests in a new company with Peter Thiel.

Tech investor Peter Thiel is teaming up with Saudi Arabia’s Public Investment Fund and a Qatari lender to back a new business-to-business commerce platform, starting with a combined sum of $110 million.

Thiel, a co-founder of data software giant Palantir Technologies and PayPal, will invest in SILQ Group through his Valar Ventures unit, according to a statement issued today.

The $925 billion Saudi sovereign wealth fund will participate through its Sanabil Investments subsidiary, joining Valar in a group that also includes Qatar Development Bank.

SILQ was formed through a merger between the Riyadh-based online marketplace Sary and ShopUp, Bangladesh’s largest business-to-business commerce platform.

With the funds from Thiel, Sanabil and Qatar, the merged company plans to target markets across the Middle East and Asia, and raise more money in 2027 through an IPO.

“Saudi Arabia and the Gulf represent one of the most exciting economic stories in the world today,” James Fitzgerald, Founding Partner at Valar Ventures, said in the statement. “This merger reflects a bold vision to place these markets at the center of a new commercial ecosystem connecting with South Asia.”

Welcome to the Daily Circuit. Kindly let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].

📰 Developing Stories

MANAGING CRISIS

Global cooperation and advanced technology are the themes underlining this week’s World Crisis and Emergency Management Summit in Abu Dhabi. As patron of the two-day conference, Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and UAE National Security Adviser described the UAE’s efforts to address a range of international crises. “Our strategic deployment of artificial intelligence and cutting-edge innovations places us at the forefront of leveraging technology to enhance emergency preparedness and response systems,” he said in a statement. Sheikh Tahnoon has led the country’s AI partnerships with Microsoft and other U.S. companies as Chairman of top state-owned businesses including G42, MGX, International Holding Co. and the Abu Dhabi Investment Authority.

TROUBLED TIMES

Emirates President Sir Tim Clark, who has run the Middle East’s biggest airline for two decades, says the UAE carrier can handle the costs of new U.S. tariffs. Still, Clark told CNBC in an interview that the Trump administration’s “trade reset” could disrupt global commerce, with China’s tariffs on U.S. aerospace firms potentially raising costs for Emirates’ wide-body fleet. “Business models like Emirates, given the international scope of what it does, the strength of what it does, will be able to ride this particular wave,” he said. Clark said the aviation industry, however, remains in “uncharted territory” as U.S. tariffs are expected to drive up airline costs. “Right now, we are in troubled times,” he said.

💲 Sovereign Circuit

Abu Dhabi Investment Authority: ADIA-owned Infinity Investments sold a 24.99% stake in Luxemborg-based Vier Gas Holding to Italy’s Snam in an equity deal worth about $1 billion.

Public Investment Fund: Folk Maritime Services, a PIF-owned Saudi shipping firm, purchased its second vessel, a Chinese-made cargo ship that can carry more than 2,000 20-foot containers.

Saudi Aramco: The state-owned oil company signed an agreement with China’s Sinopec and Yanbu Aramco Sinopec Refining Co. to expand its petrochemical processing plant at Aramco’s Yasref facility on Saudi Arabia’s West Coast.

↪↩ Closing Circuit

🏭 Offshore Expansion: Saudi-listed Arabian Drilling acquired a $69 million self-elevating offshore service platform to expand its 62-rig fleet and support growing offshore drilling operations starting mid-year.
⚕️Pipeline Deal: France-based Vallourec secured a $250 million contract to supply carbon steel pipes to Algeria’s Sonatrach.

💸 Islamic Investment: Pakistan start-up Haball, a provider of Islamic financing to small businesses and multinational firms, secured $52 million in funding to support its expansion into the Gulf.

🔒 Cyber Rules: Anecdotes, an Israeli startup that helps cybersecurity businesses meet regulatory requirements, raised $30 million in an extension of its Series B funding round that earlier raised $25 million, led by German investment firm DTCP.

🗣 Circuit Chatter

🤝 Free Trade: The UAE signed a Comprehensive Economic Partnership Agreement with the Republic of the Congo in Abu Dhabi on Tuesday in a ceremony attended by UAE President Sheikh Mohamed bin Zayed and Congo’s President Denis Sassou Nguesso.

⚓ Port Upgrade: Dubai ports operator DP World has begun construction on the Duke Point Terminal expansion in western Canada to double the port’s berth and capacity.

📈 Newly Listed: RAK Properties appointed Arqaam Securities, a financial institution regulated by the UAE Securities and Commodities Authority, as its liquidity provider on the ADX.

🔋 Battery Bid: Morocco will invite bids for a giant power storage facility with a capacity of nearly 1,600 megawatts to expand renewable energy sources in its national power network, Sabah Akadir reports.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed held a meeting on TuesdayUmaro Sissoco Embaló, President of Guinea-Bissau, who is visiting Abu Dhabi. Sheikh Mohamed also met with Armenian President Vahagn Khachaturyan on Tuesday to discuss ways to strengthen bilateral cooperation. The Emirates President also met Denis Sassou Nguesso, President of the Republic of Congo, on Tuesday in Abu Dhabi.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defense, led a delegation to India where he met Indian Prime Minister Narendra Modi. Sheikh Hamdan also met with Indian Defense Minister Rajnath Singh to discuss security cooperation.

Sheikh Mansour bin Zayed, Vice President of the UAE and Chairman of the Presidential Court, chaired the year’s first board meeting of the Abu Dhabi Fund for Development on Tuesday, reviewing financing for projects in aid-recipient countries. Also present were Reem Al Hashimy, Minister of State for International Cooperation, and Ministers of State Sheikh Shakhboot bin Nahyan and Ahmed Ali Al Sayegh.

Sheikh Abdullah bin Zayed, the UAE’s Minister of Foreign Affairs, held a meeting in Abu Dhabi on Tuesday with Egyptian Foreign Minister Badr Abdel Ati.

Prince Faisal bin Farhan, Saudi Arabia’s Foreign Minister, arrived in the U.S. on Tuesday for a visit focused on preparations for President Donald Trump’s upcoming trip to the kingdom, Reuters reports.

➿ On the Circuit

Claudio Descalzi, CEO of Eni, said the company plans on investing $26.24 billion in Algeria, Libya and Egypt over the next four years to help boost energy production, Reuters reports.

Saleh Habdan Alhabdan was appointed CEO of Saudi Arabian developer Jabal Omar Development Co. following the resignation of Abdulrahman Abdulqader Bajunaid.

Mostafa Gad, Global Head of Investment Banking at EFG Hermes, told Zawya the firm has a pipeline of seven IPOs in MENA and is expecting a few accelerated book-building deals for the rest of 2025.

🎶 Culture Circuit

✨ All That Glitters: With lasers, smoke and mirrors, Japan’s TeamLab has created a massive new digital art gallery in Abu Dhabi. Visitors to the 17,000-square-meter space will find themselves immersed in multi-colored projections when TeamLab Phenomena Abu Dhabi opens April 18, The National reports. The new facility in the UAE capital’s Saadiyat Island cultural district joins TeamLab branches in Japan, Saudi Arabia, China, the U.S. and the Netherlands.

📷 Photo of the Day

The UAE Pavilion at Expo 2025 Osaka-Kansai, which opens April 13 and will continue through October, was formally presented today at a press conference in Abu Dhabi.

📅 Circuit Calendar

April 7-9, Abu Dhabi. AIMCongress 2025. An annual investment platform in the UAE capital that brings together corporate executives, political leaders and entrepreneurs. ADNEC.

April 7-9, Dubai. Middle East Energy. Annual conference of international energy suppliers to discuss products and solutions. Dubai World Trade Centre.

April 10-11, Dubai. BoF Crossroads 2025. Business of Fashion conference addresses shifting customer preferences, industry slowdown and emerging growth in Global South markets. One Za’abeel Hotel.

April 11-13, Sakhir, Bahrain. F1 Gulf Air Bahrain Grand Prix. Formula 1 racing returns to the Gulf island state. Bahrain International Circuit.

April 13-15, Riyadh. Saudi Food Manufacturing. Back for a second year, the focus turns to logistics solutions, including advancements in AI-driven supply chains, robotics, and sustainable automation technologies. Riyadh Front Exhibition & Conference Centre.

April 14-16, Dubai. IPS Congress. The Middle East’s largest international property sales event. Dubai World Trade Centre.

April 15-17, Dubai. Abu Dhabi Global Health Week. A critical worldwide forum dedicated to shaping the future of health. ADNEC.

April 16, Qatar. Startup Grind Qatar. Qatar Investment Authority presents new startups selected as part of its Fund of Funds program. Workinton Alfardan Centre.

April 16-17, Dubai. FastBull Finance Summit Dubai. Focused on the depth and breadth of global finance, emphasizing areas such as forex and blockchain financial technology. Coca-Cola Arena.

April 17-19, Dubai. World Art Dubai. Annual retail art fair featuring more than 10,000 works for sale. Dubai World Trade Centre.

April 18-20, Dubai. Art Dubai. Three-day city festival spotlights more than 100 contemporary, modern and digital galleries from the UAE and over 40 other countries. Madinat Jumeirah.

April 18-20, Jeddah. STC Saudi Arabian GP. The Formula 1 Saudi Arabian Grand Prix by STC returns, promising an electrifying high-speed spectacle on the Red Sea. Jeddah Corniche Circuit.

April 18-20, Abu Dhabi. Middle East Film and Comic Con 2025. The region’s largest pop culture festival returns for its 13th year. ADNEC.

April 21-23, Abu Dhabi. Electric Vehicle Innovation Summit 2025. The Middle East’s largest annual event dedicated to shaping the future of electric mobility. ADNEC.

April 21-25, Dubai. Dubai AI Festival. Bringing together the brightest minds to explore and expand the commercial and economic possibilities of AI technology.” Madinat Jumeirah.

April 29-30, Abu Dhabi. Digital Transformation Summit UAE 2025. In its 37th edition, the summit is expected to be attended by over 300 C-suite executives, directors, and technology leaders. Sheraton Abu Dhabi Hotel and Resorts.

April 30. May 1, Dubai. Token2049 Dubai. A global conference dedicated to the crypto and blockchain ecosystem. Madinat Jumeirah.

May 6-7, Dubai. MENA Capital Market Summit. The event will bring together 1,500 businesses, decision-makers and global financial leaders to discuss the capital market. Madinat Jumeirah

May 20-22, Doha, Qatar. Qatar Economic Forum. Annual conference gathers brings together Qatari government and business leaders with corporate executives, investors and policymakers from around the world. Media City Qatar.

gulf liaisons

Thiel co-invests with Saudi PIF, Qatar in new business platform

The billionaire co-founder of data software giant Palantir Technologies and PayPal will invest in SILQ Group through his Valar Ventures unit

Nordin Catic/Getty Images for The Cambridge Union

Peter Thiel speaks at The Cambridge Union in May

By

Jonathan H. Ferziger

April 9, 2025

Tech investor Peter Thiel is teaming up with Saudi Arabia’s Public Investment Fund and a Qatari lender to back a new business-to-business commerce platform, starting with a combined sum of $110 million.

Thiel, a co-founder of data software giant Palantir Technologies and PayPal, will invest in SILQ Group through his Valar Ventures unit, according to a statement issued Wednesday.

The $925 billion Saudi sovereign wealth fund will participate through its Sanabil Investments subsidiary, joining Valar in a group that also includes Qatar Development Bank.

SILQ was formed through a merger between the Riyadh-based online marketplace Sary and ShopUp, Bangladesh’s largest business-to-business commerce platform.

With the funds from Thiel, Sanabil and Qatar, the merged company plans to target markets across the Middle East and Asia, and raise more money in 2027 through an IPO.

“Saudi Arabia and the Gulf represent one of the most exciting economic stories in the world today,” James Fitzgerald, Founding Partner at Valar Ventures, said in the statement. “This merger reflects a bold vision to place these markets at the center of a new commercial ecosystem connecting with South Asia.”

The Daily Circuit

The Daily Circuit: Trump energy chief headed to Gulf + Borouge growth plan

TOPSHOT - A Sotheby's employee displays the 10.03-carat 'Mediterranean Blue' diamond ring during a preview ahead of a public exhibition in Abu Dhabi on April 8, 2025. (Photo by Giuseppe CACACE / AFP) (Photo by GIUSEPPE CACACE/AFP via Getty Images)

By

Jonathan H. Ferziger

Omnia Al Desoukie

April 8, 2025

👋 Hello from the Middle East!

In the Daily Circuit today, we’re looking at Egypt’s $7.6 billion green hydrogen deal with France, Omani banks mulling $29 billion merger, Turkish designs for Kuwait’s rail link to Saudi Arabia, and a Katy Perry concert during Abu Dhabi Grand Prix weekend in December. But first, the Trump administration’s energy chief heads to the Gulf.

With petroleum prices plunging and a global trade war on the horizon, the White House is sending U.S. Energy Secretary Chris Wright to spend quality time with top oil producers in the Middle East.

Wright, the founder of Denver, Colorado fracking company Liberty Energy before joining President Donald Trump’s Cabinet this year, will visit the UAE, Saudi Arabia and Qatar during his two-week sojourn starting on Wednesday, Reuters reports.

Scheduled to meet the Gulf’s top government and corporate leaders, Wright will set the stage for Trump’s visit to the region, which is expected to take place in mid-May.

The extended visit comes as oil prices have hit a four-year lowfollowing the OPEC+ decision to lift restrictions on production that have kept prices high for the past two years.

Wright will seek to ensure an abundant global supply of oil beyond countries where the United States has sanctions on oil exports including Iran, Venezuela and Russia, Reuters reports.

Discussions will also focus on investments by the three countries in the U.S. after the UAE last month committed to spend $1.4 trillion in the No. 1 superpower over the next 10 years. Trump asked Saudi Arabia’s Crown Prince Mohammed bin Salman in January to boost his planned U.S. investment package to $1 trillion from an initial $600 billion.

Welcome to the Daily Circuit. Kindly let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].

📰 Developing Stories

PETRO PLANS

Borouge Group International, the $60 billion Emirati-Austrian chemical giant created last month, is cooking up plans to lead the industry as it awaits EU regulatory approval. “As we embark on a new era of transformative growth, [BGI] will be a global petrochemical powerhouse – combining scale, resilience and innovation,” Dr. Sultan Al Jaber, Chairman of Borouge, which is slated to merge with Vienna-based Borealis – a unit of OMV – told shareholders on Monday. Al Jaber, who is also Group CEO of ADNOC and the UAE Minister of Industry and Advanced Technology, said BGI plans to distribute a $2.2 billion annual dividend for at least four years after the deal’s closing, which is expected in 2026. “Simply put, ADNOC and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors,” Al Jaber said.

MINERAL PROCESSORS

Saudi Arabia’s Ma’aden is in talks with companies from the U.S., China, Canada and Australia to form a rare earth processing partnership. The PIF-owned mining firm plans to select at least one of the companies to help build the facility, Reuters reports. The push into local mineral processing highlights the kingdom’s effort to secure supply chains for developing AI technology and building electric vehicles. Lithium, copper, and zinc are among the rare earth minerals that are most sought after for manufacturing high-tech components.

💲 Sovereign Circuit

Public Investment Fund: Saudi Arabia’s AviLease, backed by the PIF, has signed long-term leases with Turkish Airlines for eight Airbus A320neo aircraft, of which two were already delivered and six are due in 2025.

ADQ: AD Ports Group, which is majority-owned by ADQ, signed a 10-year lease with TW Steel for container delivery, maintenance and repair at Abu Dhabi’s Khalifa Port.

Qatar Investment Authority: The QIA’s $1 billion Fund of Funds program is planning a broad role at next week’s Startup Grind Qatar with a seminar aimed at early-stage companies that will focus on how to develop the country’s tech ecosystem.

Abu Dhabi Investment Authority: Sheikh Hamed bin Zayed, the Abu Dhabi sovereign wealth fund’s Managing Director, attended the AIM Congress opening ceremony on Monday, where he met Denis Sassou Nguesso, President of the Republic of the Congo, and Armenian President Vahagn Garniki Khachaturyan.

↪↩ Closing Circuit

🏭 Ammonia Producers: Egypt and France signed a $7.6 billion deal to develop a large-scale green hydrogen and ammonia complex near Ras Shokeir on Egypt’s Red Sea coast.

🚆 Rail Link: Kuwait’s Minister of Public Works Noura Al-Mashaan signed an $8.1 million contract with Turkish engineering firm Proyapi on Monday to begin design work on a 111-kilometer railway connecting the country with Saudi Arabia, part of a bigger project that is planned to link all six Gulf states by 2030.

💰 Development Financing: The OPEC Fund for International Development approved over $600 million in financing at a meeting in Vienna on Monday to support sustainable infrastructure, private sector development, food security and human capital in countries across Africa, Asia, Latin America and the Caribbean.

🛢️ Pump It: State-owned Kuwait Oil Company approved a project to increase production by 10% from its Burgan oilfield, which is the size of Bahrain and the world’s second-largest field, Alseyassah reports.

🏢 Merger Deal: Sanam Real Estate will buy Kuwait’s International Financial Advisors’ 30% stake in Addax Bahrain for over $6 million.

🗣 Circuit Chatter

🏦 Mixing Assets: Oman’s Sohar International Bank said it will explore a merger with rival Ahli Bank in a potential deal that would create a lender with almost $29 billion in assets.

🤝 Business Mentoring: Bahrain’s Al Salam Bank signed an agreement with the government’s Tamkeen Fund and Bric MENA to participate in a program pairing established companies with tech startups to help the fledgling firms develop their businesses.

🛏️ Staying the Night: UAE hotel revenues rose 3% in 2024 to $12.3 billion as the number of guests grew 9.5% to almost 31 million.

💶 Mideast Mission: Aquila Group, a Hamburg, Germany-based firm that manages $17 billion in assets, is expanding its Middle East operations with a new office in Abu Dhabi as it looks to invest in data centers and renewable energy projects.

🏠 Mansion Mania: Majid Al Futtaim appointed Dutco Construction to build its $427 million Serenity Mansions development within the ultra-luxury neighborhood in Dubai’s Tilal Al Ghaf community.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed held a meeting in Abu Dhabi on Monday with Nechirvan Barzani, President of the Kurdistan Region of Iraq.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence, is in India on an official trip.

Sheikh Abdullah bin Zayed, Deputy Prime Minister of the UAE and Minister of Foreign Affairs, received on Monday Jeyhun Bayramov, Minister of Foreign Affairs of Azerbaijan, in Abu Dhabi.

➿ On the Circuit

Abdulla bin Mohammed, Chairman of the UAE National Media Office and the UAE Media Council held meetings with U.S. and global media and entertainment leaders during a visit to Los Angeles to explore opportunities for cooperation and investment in these vital sectors.

Ali Al-Allaq, Iraq’s Central Bank Governor, told the official Iraqi news agency that the country will restructure its banking system with U.S. consulting firm Oliver Wyman.

Mohammad Abdulrahman, Under-Secretary at the UAE Ministry of Investment and Nan Li Collins, Senior Director of Investment and Enterprise at the U.N. Trade and Development agency signed an agreement to strengthen cooperation in investment policymaking, research, and sustainable economic development.

🎶 Culture Circuit

🎤 Star Power: Singer Katy Perry will headline the music extravaganza in December that accompanies the Abu Dhabi Grand Prix each year, organizers announced. With some 170,000 F1 fans expected in the UAE capital for the event, tickets for top performers at the Yasalam After-Race Concerts in Etihad Park are snapped up months before. Demand was ferocious for Eminem last year, with scalpers collecting $1,000 a seat before showtime.

📷 Photo of the Day

TOPSHOT – A Sotheby’s employee displays the 10.03-carat ‘Mediterranean Blue’ diamond ring during a preview ahead of a public exhibition in Abu Dhabi on April 8, 2025. (Photo by Giuseppe CACACE / AFP) (Photo by GIUSEPPE CACACE/AFP via Getty Images)

Sotheby’s displays the 10.2-carat “Mediterranean Blue” diamond at a preview in Abu Dhabi before it goes on auction next month in Geneva, where it is expected to sell for $20 million.