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.

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 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.

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

Investor appetite in the Gulf is evolving, says Mohamed Ebeid, co-chief executive officer of EFG Hermes, an EFG Holding company, with a shift toward quality issuers, long-term capital, and sector-focused plays in tech, healthcare and education

The GCC IPO pipeline has remained resilient despite global headwinds. What’s your current assessment of investor appetite for IPOs in the region, particularly in markets like Saudi Arabia and the UAE?

Investor appetite in the region remains strong across local, regional, and international participants. That said, over the past 12 months we’ve observed a shift toward greater selectivity. Investors are now more focused on specific sectors and high-quality issuers rather than participating across the board.

Additionally, recent corrections in regional equity markets have moderated valuation expectations, placing more scrutiny on new issuance pricing to ensure alignment with current market realities.

EFG Hermes acted as joint bookrunner on Alpha Data’s recent DFM listing. How did that IPO perform relative to expectations, and what does it tell us about the tech and digital services investment story in the UAE?

The Alpha Data IPO outperformed other recent equity offerings in the UAE . While the transaction size was more modest than others, investor interest was high, reflecting strong confidence in the company’s fundamentals.

Alpha Data’s established market position, consistent profitability, and diversified service offering— particularly in IT infrastructure and digital transformation — resonated well with both institutional and retail investors.

The deal underlines growing investor appetite for profitable, scalable tech companies that are driving innovation and operational excellence in the UAE.

Valu has been one of MENA’s most talked-about fintechs — what’s the latest on its potential IPO, and how is EFG approaching the timing and structure for a listing?

The EFG Holding board has just announced a first-of-its-kind transaction, where it will distribute 20 per cent of Valu to its shareholders in the coming months. With this distribution, the company will become listed on the EGX and traded freely by all. Following the board’s approval, we will be approaching our general meeting for their approval in May, with trading expected to take place in June.

How are institutional investors currently viewing GCC IPOs? Are we seeing more long-term capital come in, or is there still a tilt toward short-term gains post-listing?

We’ve seen a significant structural evolution in the GCC equity capital markets over the past three years. Sovereign wealth funds’ capital recycling programmes, consistent allocations to regional asset managers, and wealth creation among family offices, particularly in light of major infrastructure investments, have all contributed to a more stable and maturing investor base. This has fostered a healthy supply-demand dynamic and increased long-term participation. While short-term gains remain attractive to certain retail investors and hedge funds, the overall trend is toward a more strategic, long-term investment approach.

Looking ahead, which sectors do you see as the next big IPO plays in the GCC, and how is EFG positioning itself to lead or participate in those future deals?

We believe consumer, healthcare and education sectors will remain top of mind for institutional investors, offering compelling opportunities for IPOs in the region. At EFG Hermes, our strategy emphasises early engagement, bringing together prospective issuers and investors well before a transaction is live. This approach allows us to shape and refine the equity story collaboratively, ensuring both parties are aligned and well-prepared when the company decides to come to market. It also enables us to provide valuable investor feedback early on, helping companies optimse their positioning and readiness.