Magic Markets #266: Dire Straits of Hormuz

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.

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Disclaimer: This podcast is for informational purposes only and does not constitute financial or investment advice. Please speak to your personal financial advisor.