GCC equity markets decline in March as global uncertainty drives investor caution

March marked a turbulent month for GCC equity markets, mirroring global investor concerns over trade tensions and economic slowdown.

March 2025 saw continued pressure on global equity markets, with the GCC markets reflecting the same sentiment as regional exchanges posted mostly negative returns. Rising concerns over U.S. trade policies and a potential economic slowdown triggered a flight to safety, with investors gravitating towards gold and government bonds.

According to Kamco Invest’s latest GCC Markets Monthly Report, the MSCI GCC Index edged down 0.4% in March, as all seven GCC exchanges registered declines. Dubai led the losses, falling by 4.2%—its first decline in ten months—while Abu Dhabi and Qatar both shed 2.0%. Saudi Arabia, Kuwait, Oman, and Bahrain also posted marginal losses.

Kuwait: Resilient Q1 Performance Despite March Dip

Boursa Kuwait saw a mixed performance in March, with the Main 50 Index falling 4.2%, while the All Share Index slipped only 0.3%. However, for Q1 2025, Kuwait emerged as the best-performing GCC market with a 9.7% gain. The banking sector, buoyed by strong Q4 earnings and “higher for longer” interest rate expectations, recorded modest gains. Notably, Oula Fuel Marketing Co. led stock performance with an 18.3% rise.

Saudi Arabia: Tadawul Stays Afloat Amid Earnings and IPO Activity

Tadawul’s TASI Index dipped 0.7%, affected by declining oil prices and geopolitical uncertainty. However, sector performance was balanced, with banks and real estate gaining 3.2% and 2.5%, respectively. IPO activity remained strong with listings from Derayah Financial Co. and Umm Al Qura. Dar Alarkan Real Estate Development Co. was the top gainer, up 19.7%.

UAE: Abu Dhabi and Dubai Suffer Setbacks

The ADX General Index fell 2.0% in March, led by a steep 8.2% decline in the Consumer Discretionary sector. The sole bright spot was the Utilities sector, which gained 15.5%, driven by Abu Dhabi National Energy Co. Meanwhile, Dubai’s DFM Index posted the sharpest drop in the GCC at 4.2%. The Financials and Consumer Discretionary sectors led the slide, while National Cement Co. rallied 29.8% on strong earnings.

Qatar: Broad-Based Decline Despite Strong Transport Sector

Qatar’s QE 20 Index declined 2.0%, marking its second consecutive monthly drop. However, the Transportation sector bucked the trend with a 3.8% gain, led by Qatar Navigation QSC. Overall trading activity decreased, with a 14.1% drop in value traded. Estithmar Holding was the top-performing stock, up 12.1%.

Bahrain: Stability Amidst Mixed Sector Moves

The Bahrain All Share Index registered a minor 0.5% decline, as losses in Materials and Financials outweighed gains in Real Estate and Consumer Discretionary. Trading activity plummeted, with value traded down 92.1% month-over-month. Khaleeji Commercial Bank BSC saw the highest gain at 18.5%.

Oman: MSX Sees Continued Weakness

The Muscat Stock Exchange extended its decline for a third straight month, falling 1.6% in March. The Industrial Index dropped 4.9%, pressured by double-digit losses in Oman Cement and SMN Power. However, Muscat Insurance Company surged 60.3% after returning to profitability. Trading volumes and value both fell by over 40%.

Outlook: Macro Headwinds to Continue Steering GCC Markets

The report notes that while large-cap sectors like banking and utilities offered some support, the region remains sensitive to external shocks. Economic forecasts for the region are optimistic—with the UAE, Qatar, and Bahrain projecting GDP growth between 2.8% and 5.7% in 2025—but equity performance will likely depend on the pace of global economic recovery, oil price stability, and investor sentiment.

Marta Zawadzka returns to TriGranit as Head of Leasing and Asset Management

Marta Zawadzka has rejoined TriGranit as Head of Leasing and Asset Management after nearly a decade away from the company. In her new role, she will manage leasing strategies and oversee the commercialisation of key developments, including the Signum office building in Warsaw and the Bonarka for Business complex in Krakow. Her responsibilities extend across TriGranit’s portfolio in Central and Eastern Europe.

Zawadzka brings over 20 years of experience in the real estate sector, with a background in leasing, asset management, and commercial development across Polish and European markets. Prior to rejoining TriGranit, she worked as Leasing and Asset Management Director at Yareal Polska. There, she managed leasing activities for projects such as the LIXA office complex in Warsaw and the retail component of the SOHO development.

Her career also includes roles at Avestus Real Estate, NEINVER, Kulczyk Silverstein Properties, GTC, and a previous tenure at TriGranit.

TriGranit CEO Tomasz Lisiecki noted that her return comes at an important moment for the company, as it continues to expand its presence in Poland and the wider region. He highlighted Zawadzka’s knowledge of the Central and Eastern European property market and her experience in strategic leasing as key assets in managing the company’s major projects.

Zawadzka holds multiple academic qualifications, including master’s and postgraduate degrees from the University of Warsaw, Jagiellonian University, AGH University of Science and Technology, the Warsaw School of Economics, and Harvard Business School. She is also a certified mentor and a member of the European Mentoring and Coaching Council (EMCC).

HAVI to become first tenant in new industrial park on former Poldi Kladno Site

HAVI Logistics s.r.o. will be the first confirmed tenant in the newly developing Panattoni Business Park Kladno, located on the site of the former Poldi Kladno steelworks. The company will lease nearly 10,000 square metres in a new logistics hall with a total area of 55,500 square metres. The facility will be used for the storage and distribution of frozen and chilled goods. Construction began on 7 March 2025, with completion planned for 1 April 2026.

The industrial park is being developed by Panattoni, with investment provided by RSJ Group. The project aims to redevelop the former brownfield into a functional industrial zone that supports local employment and introduces modern infrastructure.

HAVI, which specialises in supply chain management and logistics services, plans to use the facility to expand its warehousing capacity and streamline distribution processes. The company also plans to incorporate sustainability measures into its operations at the site.

Panattoni Business Park Kladno is being developed as a facility that meets high environmental and technological standards. It is designed with adequate utility capacity to support production and logistics operations. The first building in the park is expected to achieve a BREEAM New Construction rating of “Excellent” and will feature elements such as photovoltaic systems, heat recovery, smart energy management, and rainwater collection.

Panattoni’s focus on transforming disused industrial areas continues with the Kladno site, which follows previous efforts to redevelop similar locations into functional, modern logistics and production centres. The location benefits from strong transport connections, including access to the D5, D6, and D7 motorways, and proximity to the Kladno-Švermov railway station. The planned high-speed railway linking Václav Havel Airport and Kladno is expected to further improve regional accessibility.

RSJ Group, the project’s investor, anticipates that the redevelopment of the former steelworks site will support broader economic activity in the area. The cooperation with HAVI is seen as a positive step towards the site’s revitalisation and its potential to attract other tenants seeking modern, strategically located industrial space near Prague.

Poland climbs in UN Social Development rankings, outpacing its economic position

Between 1990 and 2022, Poland improved its standing in most international indices measuring economic and social development. According to the United Nations Human Development Index (HDI), the country advanced from 45th place in 1990 to 36th place in 2022. This position is notably higher than where Poland ranks based solely on its economic output. For instance, in the 2022 GDP per capita rankings (adjusted for purchasing power parity), Poland was 40th among 193 countries.

These findings come from a report by the Polish Economic Institute (PIE), titled “Social Development in Poland: Theoretical Foundations and Methodological Assumptions for Measuring Social Development.” The report emphasizes that Poland’s standing in international social development rankings consistently exceeds its ranking based only on economic indicators, particularly GDP. This underscores the limitations of GDP as a comprehensive measure of societal well-being.

The concept of social development, as first defined by the United Nations in 1990, focuses on three core areas: health, education, and standard of living. Since then, broader measures have been adopted. In 2008, the European Commission proposed the inclusion of environmental factors and subjective quality of life. The OECD’s Better Life Index (BLI), introduced in 2011, expanded this further to include areas such as income, employment, health care, social connections, environment, governance, security, and civil rights.

Education, well-being, and health are among the most common components in modern social development indices. Numerous studies confirm that education is closely linked to income, health outcomes, and overall life satisfaction. Similarly, good health supports both educational achievement and workforce participation.

While GDP per capita is still widely used due to its standardized methodology and its general correlation with better life outcomes, the report stresses that GDP alone is not an objective measure of social development. Higher GDP is often associated with longer life expectancy and more years spent in education. However, many social development indicators—such as life satisfaction, housing quality, and social ties—are not directly influenced by GDP growth. In some cases, countries with high GDP may experience rising inequality or stagnating living standards for large parts of the population.

According to Dr. Paula Kukołowicz, head of the sustainability team at PIE, GDP does not account for how wealth is distributed within society. As a result, a country may show strong average economic figures while many citizens experience declining financial conditions. This is particularly evident in some resource-rich countries where economic gains are not evenly shared. Social development, she argues, must be assessed more holistically, especially in developing countries like India, which see rapid economic growth alongside persistent poverty.

Poland’s own experience reflects this distinction. In nearly all major international social development indices, Poland ranks higher than it does in economic rankings. In 2022, the country placed 36th in the UN’s HDI, while it ranked 52nd in GDP per capita and 40th in GDP adjusted for purchasing power. Within the OECD’s Better Life Index, Poland held 24th place overall but was only 29th in GDP per capita.

Education plays a central role in improving Poland’s performance in these rankings. In the BLI’s education category, Poland ranked 6th among 41 countries, behind only Finland, Australia, Sweden, Estonia, and Slovenia. This category evaluates factors such as average years of schooling, performance in international assessments like PISA, and the proportion of the adult population with at least secondary education.

However, Poland scores lower in the health category, which negatively affects its overall social development ranking. Despite these challenges, the country’s steady rise in development indices suggests broader improvements in quality of life that are not fully captured by economic output alone.

Source: PIE

Igepa Polska signs lease for new space at MLP Łódź

Igepa Polska has signed a lease for approximately 7,650 square metres of space at the MLP Łódź logistics centre, expanding its ongoing partnership with MLP Group. The leased area includes around 330 square metres dedicated to office use and a showroom, while the remainder will serve warehousing purposes. The lease agreement was arranged with the support of Newmark Polska, which represented Igepa in the transaction.

The company has been cooperating with MLP Group since 2013, initially leasing space at MLP Pruszków II and later expanding its operations there. Igepa Polska is a distributor of paper and visual advertising media and has been present in the Polish market for three decades. It operates as part of the Igepa Group, a European distributor active in 25 countries.

MLP Łódź is located in the southeastern part of the city, in the Widzew district, close to the A1 motorway and within easy reach of the A2. The logistics park is under development on a 22.2-hectare site, with a planned total space of approximately 86,600 square metres. It is being built with a focus on sustainability, and the buildings will be certified under the BREEAM system. The centre is designed to support tenants in the e-commerce, logistics, distribution, and light manufacturing sectors.

The project follows MLP Group’s strategy of retaining completed developments in its portfolio and managing them in-house. The company focuses on providing tailored warehouse solutions in well-connected locations, with ongoing support for tenants throughout the lease period.

Consumer prices in Italy rise in March 2025, driven by energy and food costs

Preliminary data for March 2025 indicate that Italy’s national consumer price index (NIC) increased by 0.4% compared to the previous month and by 2.0% on an annual basis, up from 1.6% in February.

The annual inflation rate rose primarily due to higher prices for non-regulated energy products, which shifted from a year-on-year decline of 1.9% in February to a 1.3% increase in March. Additional upward pressures came from tobacco (rising from 4.1% to 4.6%), unprocessed food (from 2.9% to 3.3%), communication services (from 0.5% to 0.8%), recreation and personal care services (from 3.1% to 3.3%), and durable goods (from -1.5% to -1.2%).

At the same time, the pace of price increases slowed for regulated energy products, falling from 31.4% to 27.3%, and for transport services, from 1.9% to 1.6%.

Core inflation—which excludes energy and unprocessed food—remained stable at 1.7%, while inflation excluding only energy rose slightly to 1.8%, up from 1.7% in February.

Goods prices grew by 1.7% year-on-year, up from 1.1% in the previous month. Service prices held steady at a 2.4% annual rate. As a result, the inflation gap between services and goods narrowed from 1.3 percentage points in February to 0.7 points in March.

Prices for grocery items and unprocessed food increased by 0.1% month-on-month and by 2.1% compared to March 2024, a slight rise from 2.0% in February.

On a monthly basis, the increase in the NIC was largely driven by higher prices for non-regulated energy and transport services (both up 1.2%), as well as for tobacco and recreation-related services (each up 0.5%) and communication services (up 0.3%). These gains were partly offset by falling prices for regulated energy (-2.4%) and unprocessed food (-0.4%).

Italy’s harmonised index of consumer prices (HICP), which allows for comparison across EU countries, rose by 1.6% month-on-month, largely due to the conclusion of winter sales on clothing and footwear—factors not included in the NIC. On an annual basis, the HICP increased by 2.1%, up from 1.7% in February.

Source: Istat

Italy: Employment rises in February 2025 while unemployment continues to decline

Provisional estimates for February 2025 show an overall improvement in the labour market. The number of employed and inactive individuals increased, while the number of unemployed persons declined.

Employment rose slightly on a monthly basis, bringing the employment rate to 63.0%, an increase of 0.1 percentage points. Gains were observed among women and across most age groups, although employment fell among men and individuals aged 25–34.

The number of unemployed people fell by 79,000 in February, a decrease of 4.9% from the previous month. This decline was recorded across both sexes and all age categories. As a result, the overall unemployment rate dropped to 5.9%, down 0.3 percentage points. The youth unemployment rate also fell, reaching 16.9%, a decrease of 1.4 percentage points.

At the same time, the number of inactive individuals—those not in employment or actively seeking work—increased by 33,000 (0.3%). This rise was observed mainly among men and those aged 25–34. Inactivity declined among women and other age groups, while it remained largely unchanged among 15–24-year-olds. The inactivity rate for the month rose slightly to 32.9%, up 0.1 percentage points.

In the three-month period from December 2024 to February 2025, employment increased by 199,000 compared to the previous quarter, a growth of 0.8%. During the same period, the number of unemployed persons also rose by 32,000 (2.0%), while inactivity among people aged 15–64 declined by 208,000 (1.7%).

Looking at the annual trend, employment in February 2025 was up by 567,000 people, or 2.4%, compared to February 2024. The increase was seen in both men and women, particularly among those aged 15–24 and 50 and over. In contrast, employment declined in the other age groups. Over the year, the employment rate increased by 1.1 percentage points.

The annual growth in employment was accompanied by a sharp decline in unemployment, which fell by 342,000 (18.4%), and a modest drop in the number of inactive persons aged 15–64, down by 60,000 (0.5%).

Source: Istat

Union Investment begins conversion of Rheinpark Centre in Neuss into mixed-use health and retail hub

Union Investment has launched the transformation of the Rheinpark Centre in Neuss, aiming to integrate healthcare services into the existing shopping environment. The project involves the conversion of approximately 11,500 square metres of retail space on the first floor into a health centre featuring doctors’ surgeries and other medical services.

The redevelopment, branded as the “Mall of Life,” is expected to take place over the next two years, with completion planned for early 2027. The goal is to create a mixed-use environment that combines healthcare with retail, offering visitors more reasons to use the space while improving the overall appeal of the centre.

Planning approval for the project was granted in summer 2024, and initial construction work has already begun. About half of the new medical space has already been leased, and discussions are ongoing with additional prospective tenants.

The total investment in the repositioning amounts to approximately €50 million and is being financed through Union Investment’s open-ended real estate fund UniImmo: Europa. The broader centre, which opened in 2010, offers a total of 48,000 square metres of leasable space.

As part of the renovation, architectural improvements such as atriums for natural lighting and green roofing are being implemented. Lounge areas will also be introduced to enhance the quality of the interior environment.

On the retail side, key tenants including Aldi, MediaMarkt, and dm have signed new long-term leases for ground-floor space, enabling the release of the first-floor area for the health centre. Their relocation is scheduled for completion by mid-2025. Retail operations will continue throughout the redevelopment in two stages.

According to Union Investment project manager Norman Naehrig, the Neuss site and its regional catchment of approximately 640,000 people provide a strong foundation for this pilot concept, which aims to serve as a model for other locations.

Chinese carmaker BYD launches in Czech Republic with electric and hybrid models

BYD (Build Your Dream), China’s largest car manufacturer, has officially entered the Czech and Slovak markets, launching sales of its electric and hybrid vehicles. The company initially offers two electric models and one hybrid, available through three dealerships. By the end of 2025, BYD plans to expand to 30 sales points in the Czech Republic and add around 20 in Slovakia, company representatives announced at a press conference in Prague.

The company’s Czech and Slovak operations are led by Martin Heřmanský, former regional director for Harley-Davidson and previously affiliated with Ford and Fiat. The first cars available include the Seal U DM-i hybrid and the fully electric Seal sedan. The hybrid model has a starting price of under CZK 970,000, while electric versions cost approximately CZK 200,000 more. The vehicles offer an electric range exceeding 520 kilometres.

The Czech market is already home to several other Chinese automotive brands, including Chery, MG, and DongFeng, with BAIC expected to join soon. Some Tesla and Honda vehicles sold in the Czech Republic are also produced in China. Analysts note that the growing presence of Chinese carmakers in Europe is driven in part by high production volumes in Asia and limited access to the U.S. market due to trade restrictions.

Last year, imports of Chinese-made cars to the Czech Republic more than doubled. In 2024, Czech buyers purchased 7,675 vehicles of Chinese origin, up from 3,516 in the previous year. These accounted for 3.3% of new passenger car registrations.

Founded in 1995 in Shenzhen, BYD began as a battery manufacturer before expanding into automotive production in 2003. Its first model, the BYD F3, launched in 2005 and was based on the Toyota Corolla. In 2024, BYD sold 4.3 million vehicles globally, making it the seventh-largest carmaker in the world by volume.

Source: CTK

Poland tightens disease controls and advances nuclear power project

As of early 2025, there have been no reported cases of foot-and-mouth disease in Poland. In response to outbreaks in neighbouring countries—Germany, Hungary, and Slovakia—the Polish government has intensified its border controls to prevent the spread of the virus. Measures include comprehensive inspections of all transports entering the country from affected regions, particularly at the borders with Slovakia, the Czech Republic, and Germany. Imports of animals and animal products from infected areas are not permitted.

During a recent meeting of the Council of Ministers, Agriculture Minister Czesław Siekierski provided an update on the situation and outlined the ministry’s response, which includes the formation of a crisis management team to monitor and act on developments. According to Prime Minister Donald Tusk, the government’s early actions were more proactive than those taken at the EU level, and have so far proven effective.

Although Poland has not seen a case of foot-and-mouth disease since 1971 and the disease poses no risk to humans, the government is prepared for multiple scenarios. Preventative efforts continue, with the aim of maintaining the country’s disease-free status.

The government also approved financial support for farmers impacted by natural disasters in 2024. A total of PLN 600 million will be allocated as compensation: PLN 350 million for drought-related losses and PLN 250 million for those caused by flooding. While this aid may not fully offset all damages, the government stated that it was based on a thorough assessment of the impact.

In addition, Prime Minister Tusk confirmed the continuation of the country’s nuclear power programme. A revised agreement has been reached with the American consortium Westinghouse-Bechtel regarding the construction of Poland’s first nuclear power plant in Lubiatowo-Kopalino, in the Choczewo municipality. The new terms are intended to better protect Polish interests, including more favourable conditions for project execution, clearer timelines, and defined penalties for delays. The previous negotiation process, conducted under the former administration, lacked oversight from the Attorney General’s Office, which has now been addressed.

The updated framework agreement allows for the continuation of design work and the administrative procedures necessary to begin construction. Geological surveys and permitting processes are ongoing. The first reactor is expected to be operational by 2036, with construction beginning in 2028. The broader nuclear strategy includes the development of two plants with a combined capacity of 6 to 9 GW. The government plans to allocate PLN 60.2 billion from the state budget toward the programme.

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