Dubai Beckons: Bugatti Towers and Billion-Dollar Funds Emerge
The uncertainty triggered by the 12-day Israeli-Iranian war in the Arabian Gulf region appears to be over. Stock markets in the Gulf are recovering, and new asset managers are entering the race for returns. Among them is a well-known luxury real estate developer from Dubai.
Written by Gérard Al-Fil, Dubai
This past Tuesday, Arif Amiri, CEO of the Dubai International Financial Center (DIFC), a banking free zone, welcomed Wealthbrinx as the newest asset manager in the financial community. Wealthbrinx was founded by a group of bankers who, over the course of their careers, collectively managed $30 billion. Their CEO, Rajesh Khanna, outlined the company’s business goals as follows: «Wealthbrix brings together open-architecture access, multiple global custody banks, in-house asset management, consolidated reporting, and debt & equity advisory to deliver bespoke, holistic solutions for today’s discerning clients.»
According to Boston Consulting Group, the financial wealth of the six GCC countries is growing at an annual rate of 4.7 percent and is expected to reach $3.5 trillion by 2027.
Earlier in June, Harrison Street, a US-based asset manager focusing on property investments and infrastructure, announced its foray into the Gulf region. Harrison Street manages $56 billion in assets and was granted a license to open a branch at Abu Dhabi Global Market (ADGM), the second financial free zone in the United Arab Emirates.
Binghatti: Developer with Its Own Asset Manager
Also new to the financial scene is Binghatti Capital, which has likewise established itself in the DIFC. The firm specializes in real estate financing in compliance with Islamic Sharia law. Behind Binghatti Capital is Muhammed Binghatti, Chairman of the real estate developer Binghatti Holding, which has caused a stir—and raised eyebrows—with extravagant projects like the Bugatti Tower currently under construction in Dubai’s Business Bay. The 11 penthouses on top of the tower allow residents to park their cars via elevator right next to their own swimming pool.
Qatar’s Sovereign Wealth Fund Joins In
On June 25, Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), announced the launch of the Fiera Qatar Equity Fund. Equipped with $200 million in petrodollars and natural gas revenue, the fund aims to generate solid returns by investing in equities listed on Qatar’s QSE stock exchange.
Qatar was the only Arab Gulf state to come under direct threat during the Israeli-Iranian 12-day war from June 13 to 24, as Iranian missiles targeted the US Air Force base Al Udeid in the Qatari desert on the penultimate day of the conflict. Iran intended this as retaliation for the US Air Force’s attack on Iranian nuclear facilities. However, all missiles were intercepted by Qatari air defenses, and no damage was reported.
Just as in Europe, Asia, and the US stock indices in Dubai, Riyadh, and Abu Dhabi rebounded after the ceasefire on June 24, signaling relief over the end of hostilities. For example, Saudi Arabia’s stock index TASI climbed back above the 11,000 mark on Thursday after having retreated to 10,500 points during the week of the crisis.
