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, let’s dive straight into the impact of Iran’s unprecedented response to US and Israeli strikes that started on Saturday. The Middle East’s ascent on the...
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, let’s dive straight into the impact of Iran’s unprecedented response to US and Israeli strikes that started on Saturday. The Middle East’s ascent on the global financial stage has been built on a simple promise: Stability. Missiles and drones flying over cities like Abu Dhabi , Doha, Dubai and Riyadh are testing that thesis in real time. Banks including Goldman Sachs, JPMorgan and Citigroup shifted staff to remote work and activated contingency plans. Hedge funds clustered in the Dubai International Financial Centre reviewed evacuation routes and booked hotel rooms for stranded employees. Some explored overland options via Oman as airspace restrictions rippled across the region. Read More : Hedge Funds, Banks Forced Into Contingency Mode in the UAE The question now is whether this proves a short-lived shock or a turning point. Dubai’s property market has been one of the world’s hottest. At least one analyst said prices in the city could be exposed due to elevated valuations, and because such disruptions have been rare. Prices are up roughly 70% over four years, fueled by Russian inflows, crypto wealth and an influx of global millionaires. They’ve also been driven up by a surge of finance professionals, particularly hedge fund traders, chasing tax advantages and proximity to capital. The DIFC hosts more than 100 hedge funds, from multibillion-dollar platforms to boutique managers. Abu Dhabi has been expanding in parallel, anchoring managers with seed capital from state-backed investors. “The UAE is doing an incredible job in terms of defending itself and its residents and I think the vast majority of people continue to feel safe here,” said Kish Desai, who moved from London to Dubai last year to open Tourmaline Partners. “W...
DancingMan/iStock via Getty Images Markets are reacting in all the usual ways one would expect following the conflict in Iran. Stocks are sliding , the dollar is gaining , while oil has surged 8% to over $72 per barrel and gold just rose above $5,400 an ounce . How long those trades play out depends on how long the campaign in the Middle East will last and whether tensions will escalate in the Str...
DancingMan/iStock via Getty Images Markets are reacting in all the usual ways one would expect following the conflict in Iran. Stocks are sliding , the dollar is gaining , while oil has surged 8% to over $72 per barrel and gold just rose above $5,400 an ounce . How long those trades play out depends on how long the campaign in the Middle East will last and whether tensions will escalate in the Strait of Hormuz and to areas far beyond. Temporary surge or $100 oil? What happened? On Saturday morning, Iranian Supreme Leader Ayatollah Khamenei and many top regime leaders were killed in strikes on Tehran. A joint U.S.-Israel campaign was launched after determining that diplomatic efforts toward having the Islamic Republic give up its nuclear ambitions and end its regional terror network hit a dead end. There were also fears over its ballistic missile program that was increasing in scope and size - with no safeguards for a regime whose slogans are "Death To America" and "Death To Israel" - and mows down its citizens by the thousands for protesting economic mismanagement and human rights. Khamenei betting frenzy triggers backlash, scrutiny of prediction markets After losing its top command structure, Iran has been lashing out all over the region. It continues to launch volleys of ballistic missiles toward civilian and military locations in Israel, as well as the UAE, Kuwait, Qatar, and Bahrain. Overnight, Lebanon's Hezbollah jumped into the fighting , while Iran extended its strikes to European soil and Saudi Arabia's Ras Tanura , which is one of the biggest oil ports in the world. See where Iran ranks in OPEC oil production Outlook: In the long run, investors will reward the nations and companies capable of not only defending their interests, but also providing security for others. That includes regions that will be ripe for investment, as well as corporations involved in defense contracting, cyber, space, and battlefield management, or firms involved in energy independen...