Episode #41
How we invest in Gulf equities
Key takeaways Saudi equities have drifted to roughly zero sensitivity to oil once global equity movement is accounted for. UAE equities now move against crude, driven by property rather than energy. Aramco and the petrochemical names are close to 19% of the Saudi index, yet Aramco rose about 15% as crude rose 31%. Under half the move reached shareholders. Real estate is about 18% of the UAE market and fell roughly 20%, with one developer causing most of the damage. Energy is only about 9%. Financials are roughly 40% of each market, which is why both now track global sentiment more closely than the oil price. Only about one in four Saudi equity funds beat TASI. Cash and sukuk funds returned a median of 3.8%, and nearly half of all fund assets in the Kingdom already sit there. The gap between the best and worst Saudi equity fund exceeded 24 points in a market that moved 3.2%. Selection mattered far more than allocation. Links CNBC International, Access Middle East segment: Gulf equities at a negative correlation with oil markets, 14 August 2026 — watch here: https://www.cnbc.com/video/2026/08/14/gulf-equities-at-a-negative-correlation-with-oil-markets.html CIO Memo, August 2026: charts and full analysis: https://acrobat.adobe.com/id/urn:aaid:sc:US:690f5a67-7f58-4e3d-b5f8-48c02b131733 Dantes Outlook website: www.dantesoutlook.com The information presented is for informational purposes only and should not be considered as investment advice nor as a recommendation of any particular strategy, allocation or investment product: before making any investment decision, you should seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory and foreign currency requirements for any investment according to the laws of your home country and place of residence. Investing involves risk, including the possibility of loss of principal. Any forward-looking statements or forecasts are based on assumptions and actual results may vary from any statements or forecasts. Visit us at www.dantesoutlook.com
