Back to all gcc news

Too soon to panic? EFG Holding Group CEO urges calm over US tariffs

Speaking at the 19th EFG Hermes One-on-One Investor Conference in Dubai, Awad said global investor sentiment had been shaken by rising uncertainty

Gareth van Zyl
Gareth van Zyl

08 April, 2025

Too soon to panic? EFG Holding Group CEO urges calm over US tariffs
Karim Awad, Group CEO and Chairman of the Executive Committee, EFG Holding.

TT

16

Gulf countries have less reason to panic over the impact of US President Donald Trump’s new tariffs, says Karim Awad, group CEO of financial institution EFG Holding.

Speaking to Gulf Business at the 19th EFG Hermes One-on-One Investor Conference in Dubai, Awad said investor sentiment had been shaken by rising uncertainty.

Global markets reacted sharply on Monday to Trump’s newly announced reciprocal tariff regime, with Hong Kong’s Hang Seng posting its worst fall since 1997 and more than $6tn wiped off US markets over the past three trading days. In the GCC, Saudi Arabia’s Tadawul dropped 7 per cent on Sunday: its steepest decline in five years.

Trump’s “universal baseline tariff” initiates a flat 10 per cent import tax on all goods entering the US, with steeper rates for select countries such as China, where tariffs have been set at 34 per cent.

“The thing that investors like the least is uncertainty,” said Awad.

“It is not only that the tariff regime is tough. It is also that no one is really sure where it will stop. And whether this has ended or whether it will escalate, whether it will de-escalate, no one is really 100 per cent sure.”

By contrast, GCC countries are currently facing only the baseline 10 per cent tariff, a fact Awad believes is being overlooked.

“Having said that, I am not sure that the impact on the Gulf markets, with the exception of course of the movement in oil prices, warrants all that amount of panic, especially that the amount of tariffs that has been slapped on the Arab world is not, to be honest, that big,” he added.

“Naturally there is worry about oil prices and the impact on oil prices, which is a legitimate worry. At the end of the day, it takes time for people to digest, it takes time for companies to adjust to the impact of these changes. And we’ll see where it goes from here.”

Awad also commented on the outlook for Egypt, where EFG Holding is headquartered, noting that the recent float of the pound had helped restore investor confidence.

“The one positive that I saw yesterday, and that I’m actually quite impressed about, is that it was a clear example that the currency regime in Egypt is flexible and that it moves,” he said.

“There is very little intervention from the Central Bank of Egypt, if any. And this should give investors also a lot of confidence that the country is moving in the right direction.”

EFG Holding remains upbeat

Despite the market ructions, EFG Holding remains optimistic.

Founded more than 40 years ago, the group is a financial powerhouse with operations in seven countries across MENA. Its investment banking arm, EFG Hermes, is widely regarded as the region’s leading player, offering services across advisory, asset management, brokerage, research, and private equity.

In 2024, the group posted record revenues of around $545m, up 66 per cent year-on-year. Net profit after tax and minority interest surged 71 per cent to $105.3m. Total assets reached EGP186.9bn by year-end. The firm has also topped equity capital markets (ECM) league tables in the region.

EFG Hermes is working on seven initial public offerings (IPOs) across the GCC in 2025 worth up to $10bn, including five in Saudi Arabia, according to Mostafa Gad, global head of investment banking at EFG Hermes. The firm is also advising on around 10 M&A deals worth between $6bn and $8bn this year, he told Asharq News.

Heading into 2025, the IPO pipeline remains “extremely healthy”, Awad said, with strong demand expected from global investors seeking exposure to one of the world’s most dynamic regions.

Dubai plays host to EFG Hermes’ flagship investor event

This week, EFG Hermes is hosting its flagship One-on-One Investor Conference in Dubai, now in its 19th edition. The event, widely seen as one of MENA’s most influential investment gatherings, is being held at the JW Marriott Hotel Marina and brings together 220 companies from 12 countries and 675 institutional investors from 252 global firms.

“We are delighted to welcome all our conference participants and invite them to enjoy the vibrant exchange of ideas and engage in the thought-provoking discussions in our interactive meeting spaces,” Awad said.

6G in UAE: Impact on homes, businesses you need to know

For e&’s customers—already experiencing gigabit fibre speeds—these tests open the door to next-level wireless connectivity

Gulf Business
Gulf Business

08 April, 2025

6G in UAE: Impact on homes, businesses you need to know
Image credit: Getty Images

TT

16

Telecommunication provider e& UAE has announced a test of the 6GHz and 600MHz spectrum bands, recently allocated for IMT (International Mobile Telecommunications) by the Telecommunications and Digital Government Regulatory Authority (TDRA).

Read-Etihad Salam Telecom’s next leap: AI, 5G, and Saudi Vision 2030

According to a WAM report, the tests aim to achieve ultra-fast speeds of up to 10 Gbps with the power of 6 GHz, complemented by seamless aggregation with other FR1 TDD bands using commercial-grade Customer Premises Equipment (CPE). Additionally, e& UAE demonstrated the 600 MHz band’s ability to extend 5G coverage beyond 6km.

These tests mark a major step in redefining 5G connectivity in the UAE and promise transformative benefits for homes, businesses, and the nation’s digital economy.

“Our customers rely on us for fast, dependable connectivity, and these tests show how we are shaping the future of 5G wireless in the UAE. By achieving 10 Gbps with 6 GHz as a key driver and 5G coverage beyond 6km on 600MHz using commercial equipment, we are not just setting technical benchmarks—we are paving the way for 5G-Advanced, the future of 6G, and a smarter, more connected UAE,” said Marwan Bin Shakar, Acting Chief Technology Officer, e& UAE.

e& UAE is unlocking the full potential of these spectrum bands to complement its existing 5G network, leveraging commercial CPE for real-world deployment.

This initiative reinforces the UAE’s position as a global leader in next-generation wireless technology.

How will the tests benefit e&’s customers?

For e&’s customers—already experiencing gigabit fibre speeds—these tests open the door to next-level wireless connectivity.

The 6GHz band enables seamless 8K UHD streaming, ultra-fast downloads, and lag-free virtual reality experiences, while the 600 MHz band ensures reliable 5G coverage even in dense urban areas and remote locations. With 5G coverage extending beyond 6 km, users can expect uninterrupted connectivity for work, entertainment, and communication.

Advantages for businesses

For businesses, these tests extend high-speed fibre capabilities into a flexible 5G wireless domain. The 6 GHz band delivers ultra-fast broadband for cloud workflows, IoT, and AI-driven analytics, while the 600 MHz band ensures broad, stable coverage for industrial IoT deployments and smart city applications. This combination provides enterprises with agility, scalability, and enhanced operational efficiency.

Impact on smart city initiatives

TDRA’s 2024 spectrum allocation positions the UAE at the forefront of 5G evolution. The 6 GHz band’s 350 MHz bandwidth supports high-capacity urban connectivity, while 600 MHz ensures extensive coverage and deep indoor penetration. These advancements will accelerate smart city initiatives, industrial automation, and nationwide digital transformation.

Boost to global economy

A study by GSMA Intelligence projects a significant boost to the global economy, forecasting that 5G will contribute over $610bn to global GDP by 2030. Notably, mid-band 5G spectrum is expected to be the primary driver of this growth, accounting for nearly 65 percent of the total economic value generated by 5G.

This highlights the critical role of mid-band spectrum in maximizing the socio-economic benefits of 5G technology and underscores the importance of strategic spectrum allocation policies.

Contribution to UAE’s GDP

Global forecasts suggest that mid- and low-band spectrum, like 6GHz and 600MHz, will support the local economy by contributing to the UAE’s GDP.

e& UAE’s tests with TDRA highlight 6GHz for high-speed data and 600MHz for far-reaching coverage, laying the foundation for 5G-Advanced and the transition toward 6G.

By integrating C-band, 6GHz, and 600MHz, e& UAE is building a resilient, future-proof 5G ecosystem. The C-band ensures high-capacity urban connectivity, 6 GHz powers ultra-fast broadband, and 600MHz extends coverage nationwide. This balanced spectrum strategy will drive smart city innovation, business growth, and seamless nationwide connectivity.

Kuwait moves ahead: Gulf rail link design contract signed

The railway will span 111 kilometres within Kuwait, from its southern border with Saudi Arabia in the Nuwaiseeb district to Al-Shadadiya in the north

Reuters
Reuters

07 April, 2025

Kuwait moves ahead: Gulf rail link design contract signed

TT

16

A long-delayed railway project to connect Kuwait with other Gulf countries took a step forward on Monday when Kuwait’s Minister of Public Works, Noura Al-Mashaan, signed a contract with Turkish company Proyapi to design the first phase of the plan.

Kuwait is set to be the northern terminus of the Gulf Railway which will stretch 2,177 kilometres (1,353 miles) to the Omani capital, Muscat, passing through Saudi Arabia and the other Gulf states.

Read-UAE, Jordan sign $2.3bn agreement to build railways

The six Gulf Cooperation Council countries agreed to build the rail network in 2009 and construction has started on railways in the United Arab Emirates, Oman and Saudi Arabia.

The railway will span 111 kilometres within Kuwait, from its southern border with Saudi Arabia in the Nuwaiseeb district to Al-Shadadiya in the north.

Ministry of Public Works spokesperson Ahmed Al Saleh said the signing signalled the launch of the project in Kuwait.

“Once you sign the design contract, you’ve started and placed the wheels on the right track,” Al-Saleh told reporters after the contract signing at the ministry.

The consultancy contract was awarded to Proyapi in January for approximately 2.5 million Kuwaiti dinars ($8.1 million), with the advisory period set to last about a year. The Kuwaiti part of the project is scheduled to be completed by 2030.

Al Saleh said it was not possible to determine the final cost of the Kuwaiti part of the project until the final design is completed.

Visa freeze: Saudi Arabia suspends entry for 14 nations

The decision to implement the suspension was made to address overcrowding and safety concerns during Hajj

Nida Sohail
Nida Sohail

07 April, 2025

Visa freeze: Saudi Arabia suspends entry for 14 nations
Image credit: Getty Images

TT

16

Saudi Arabia has temporarily suspended the issuance of Umrah, business, and family visit visas for citizens of 14 countries.

According to a report in the Times of India, the ban will be in effect until mid-June, coinciding with the conclusion of the Hajj pilgrimage.

The decision to implement the suspension was made to address overcrowding and safety concerns during Hajj. April 13 will be the last day for the issuance of Umrah visas, according to Saudi authorities. No new visas will be granted to nationals of the countries on the banned list until after the conclusion of Hajj.

Read-Saudi Arabia cuts May oil prices to Asia to four-month low

The full list of the 14 countries affected by the visa suspension includes: Algeria, Bangladesh, Egypt, Ethiopia, India, Indonesia, Iraq, Jordan, Morocco, Nigeria, Pakistan, Sudan, Tunisia, and Yemen.

India is on the list to prevent unauthorised participation in Hajj. Reports indicate that some individuals from India, as well as other banned countries, have entered Saudi Arabia on Umrah visas or other visas and overstayed to perform Hajj without registering through official channels.

This process bypasses the quota system implemented by Saudi Arabia, which allocates specific Hajj slots to each country to regulate the number of pilgrims.

Sources report that these unregistered participants are responsible for overcrowding and the intense heat that resulted in the deaths of over 1,200 pilgrims during Hajj 2024. Often, unregistered pilgrims lack access to basic amenities such as lodging, transportation, and healthcare, worsening safety and logistical concerns. This is a key reason why officials are tightening visa regulations to prevent further tragedies.

Hong Kong shares suffer steepest decline since 1997

Hang Seng nosedives 13 per cent as a trade war fans recession fears

Reuters
Reuters

07 April, 2025

Hong Kong shares suffer steepest decline since 1997

TT

16

Hong Kong stocks suffered their biggest drop since 1997 on Monday after Beijing hit back at US tariffs with its own trade levies, deepening market turmoil amid fears of a widening trade war. China’s sovereign wealth fund stepped in to stabilise local shares.

The Hang Seng index slumped 13.2 per cent, marking its sharpest one-day decline since 1997. Tech, solar, banking and online retail stocks plunged, as investors rapidly dumped anything tied to global growth and trade.

China’s CSI300 blue-chip index fell 7 per cent after Central Huijin, the so-called “national team” of state-backed investors, announced in the afternoon session it had increased holdings of Chinese stocks to support market stability. Trading volumes in ETFs linked to the CSI300 index surged.

The yuan slipped to its weakest level since January, while Chinese bonds rallied sharply.

Facing US tariffs of over 50 per cent, China retaliated on Friday with additional levies on American imports.

The intensifying standoff between the world’s two biggest economies now threatens to disrupt global trade flows, dent Chinese corporate earnings, and further slow global demand – at a time when China is already facing sluggish growth.

“I think the impact of this shock is going to be quite significant,” said Tao Wang, chief China economist at UBS, during a call with investors. “It was challenging to achieve the government’s growth target to start with. And now it’s even more challenging.”

Trading volumes were elevated, especially as Chinese markets were closed on Friday, when selling pressure spiked in the US and other global financial centres.

The Hang Seng Tech Index plummeted 17 per cent – its worst single-day performance since records began. The index is now down 27 per cent over the past month and close to its level at the start of the year before the DeepSeek-driven rally.

“The Asia move this morning is partly a catch-up from Friday for markets… so I wouldn’t say there’s been a disproportionate move today – it’s a blanket risk-off,” said Ben Bennett, head of investment strategy for Asia at LGIM in Hong Kong.

Mainland indexes tracking solar firms and household appliance makers each lost around 10 per cent. Selling also hit oil and gas stocks hard, as recession fears battered oil prices, with pressure seen across sectors from EVs to cloud computing.

The Hang Seng volatility index surged to its highest level since March 2022.

Hong Kong-listed shares of HSBC tumbled 15 per cent, while Standard Chartered fell 16 per cent.

With no signs of a backdown from the White House, investor focus has shifted to Beijing for measures that could support Chinese exporters and boost the domestic economy.

“Beijing will have little option now but to accelerate domestic consumption, so more measures to stimulate demand are expected,” said Steven Luk, CEO of FountainCap Research & Investment.

“We are not degrossing but looking to take advantage of the selloff by buying names with more exposure to domestic demand.”

Shares in online giants Alibaba and Tencent dropped 18 per cent and 12.5 per cent, respectively.

Dubai, Abu Dhabi stock markets fall amid global sell-off

The losses across the UAE markets reflect investor concern over new tariffs imposed by US President Donald Trump

Gareth van Zyl
Gareth van Zyl

07 April, 2025

Dubai, Abu Dhabi stock markets fall amid global sell-off
A man browses his phone while sitting near a screen displaying the stock indices at the Dubai Financial Market (DFM) stock exchange in Dubai on April 7, 2025. (Getty Images)

TT

16

Equity markets in the UAE opened lower on Monday, with both Dubai and Abu Dhabi bourses extending the regional sell-off triggered by new US tariffs and a global market downturn.

Dubai’s DFM General Index (DFMGI) dropped 3.91 per cent to close at 4,757.85 just after midday, shedding nearly 194 points. The market recorded a total trading value of Dhs859.8m across more than 18,000 trades. Sentiment remained firmly risk-off following Sunday’s heavy losses across the Gulf and broader MENA markets.

Emaar led losses by value on the Dubai Financial Market, falling 4.6 per cent to Dhs11.30. Dubai Islamic Bank followed with a 4.58 per cent fall to Dhs6.87. Emaar Development was down 5.94 per cent, while Talabat shares fell around 9 per cent, making it one of the day’s steepest decliners.

Other notable names in Dubai also ended deep in the red. SALIK dropped around 3 per cent to Dhs4.94, while Emirates NBD held steady at around Dhs19.15. Heavy trading volume was concentrated in Emaar, DIB and Talabat shares.

In Abu Dhabi, the story was similar. The FTSE ADX General Index (FADGI) sank 2.9 per cent to 8,920.62 just after midday, recovering slightly in late trade after plunging below 8,800 points in early morning deals. The sell-off was broad-based, led by large caps.

ADNOC Gas fell 5.98 per cent to Dhs2.83, while Aldar Properties shed 5.44 per cent to Dhs7.30. Abu Dhabi Commercial Bank (ADCB) dropped 4.43 per cent, and Abu Dhabi Islamic Bank (ADIB) slid 3.67 per cent. IHC, despite its high share price of Dhs401.60, fell 1.54 per cent and remained among the most active by value.

The losses across the UAE markets reflect investor concern over rising global tensions following the US’s imposition of sweeping new import tariffs, including a 10 per cent levy on Gulf exports. The move has stoked fears of a broader trade war, weakening oil prices and hammering sentiment across emerging markets.

Meanwhile, Saudi Arabia’s Tadawul All Share Index (TASI) showed signs of recovery on Monday. After plunging just over 6 per cent on Sunday in its biggest drop since 2020, the index rebounded 0.9 per cent on Monday to close at 11,176.41, regaining nearly 100 points and partially clawing back yesterday’s steep losses.

Read more: Saudi stocks plunge by $133bn in biggest fall since 2020

More news in gcc