Magic Markets

Magic Markets #266: Dire Straits of Hormuz


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Four weeks into the war in Iran, the numbers tell a stark story around the risks for equity plays in regions like the UAE. Dubai-listed property and bank stocks have tumbled, while the government bears the burden of owning leading hotel and airline groups.

With the Straits of Hormuz as a daily topic, Mohammed Nalla and The Finance Ghost discuss the ways in which this is reshaping global logistics - and perhaps more importantly, the stocks of companies in this sector. And yes, this includes the concept of war insurance! 

Today’s Topics:

  • War insurance premiums have skyrocketed from negligible levels to 7.5% of vessel value per voyage, creating a concerning inflationary effect in commodity prices and shipping costs. 
  • Dubai's top property stocks have cratered 20% to 30% in a single month, with Emaar Properties leading the decline. What could this mean for the Dubai property market in years to come?
  • With UAE-based banks holding most of the debt in property stocks, how have those stocks performed?
  • The value of public sector ownership in times of crisis, with government-owned infrastructure like airports able to weather the storm. Ditto for Emirates Airlines and leading hotel groups.
  • Qatar faces approximately $20 billion in annual LNG losses, with a recovery timeline stretching five to six years.
  • Get in touch:

    • The Magic Markets Website
    • @MagicMarketsPod, @FinanceGhost, and @MohammedNalla (all on X)
    • Pop us a note on LinkedIn
    • Disclaimer: This podcast is for informational purposes only and does not constitute financial or investment advice. Please speak to your personal financial advisor.

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