The Islamic bond market is experiencing improving liquidity levels, though it has yet to reach pre-Iran war standards. Tony Hallside, CEO of STP Partners, highlights the significance of stabilized risk appetite and continued demand for high-quality issuers in this recovery. He emphasizes that full normalization in the market is contingent on both political and economic factors.
“A full return to pre-war liquidity needs three things: visible de-escalation, a calmer oil market, and a reopened primary market with successful benchmark issuance from high-quality names.”
— Tony Hallside, CEO of STP Partners
“PIF’s reduction in US equity holdings should not necessarily be viewed as a retreat from US markets, but rather as part of a broader portfolio recalibration and capital allocation strategy,” said Tony Hallside, CEO of STP Partners.
He added that Saudi Arabia is in the midst of a major domestic transformation under Vision 2030, and, naturally, the fund is becoming more selective and concentrated in its international capital deployment.
“Saudi Arabia’s insurance sector continues to benefit from strong structural drivers, particularly regulatory reform, compulsory insurance lines and broader economic diversification linked to Vision 2030,” said Tony Hallside, CEO of STP Partners.
Tony Hallside, chief executive of STP Partners in Dubai, says most portfolios look diversified on paper but are more concentrated than investors realise. “A typical allocation today is heavily exposed to a small group of large-cap tech names."
Investors should not panic and shift funds out of riskier areas, but should reduce concentration, Mr Hallside says. “The key is to avoid being exposed to the same macro risk through multiple channels, whether that is AI-driven equity concentration or leveraged credit exposure.”
