As the war between Iran, Israel, and the US now enters its second week, GCC-based investment banks, which had been on a growth spurt over the last 24 months with a flurry of DCM and ECM deals, have indicated that they are sustaining their local operations.
The Islamic Revolutionary Guard Corps (IRGC) of Iran threatened on Tuesday to attack economic centres and banks associated with US and Israeli organizations in the region, and local activities might be influenced by such threats.
Most bankers have been working at home since the beginning of the war, though they claim they are still carrying on with their operations and business activities. They would most probably keep on working at home till there is more certainty as to the events unfolding in the region.
“The vast majority of our people in the UAE have been working remotely, and we have now moved to a fully remote model for all UAE-based colleagues,” Citi, which has centred its regional operations in Dubai, told Zawya. “We are continuing to serve our clients without interruption.”
It stated, “The decision to evacuate three of our buildings in the UAE was responsive to information we received and is consistent with our commitment to prioritize the safety of our colleagues. All colleagues are accounted for and are safe.”
HSBC, which has been leading LSEG league tables over the past three years, said that it has been proactively pursuing government guidelines as well as its internal strategies to manage working arrangements.
In a statement on the events affecting the GCC countries, CEO Georges Elhedery said: “The region has repeatedly shown its ability to endure periods of disruption, adapt with determination, and emerge stronger. HSBC has been deeply committed to the region for more than 130 years. We remain invested in its future and in the opportunities that lie ahead for its people, businesses, and economies.”
Standard Chartered has denied reports that staff have been evacuated from its Dubai offices. It added, “While we continue to monitor developments closely, the UAE and our other Middle East markets remain an important part of our global network, through which we continue to support clients navigating a complex environment.”
However, the bank had a precautionary work-from-home policy in place last week, which has been prolonged.
Deutsche Bank, which conducts a significant part of its Middle East Investment Bank business in London and Dubai, informed Zawya that its operations and business in the area are proceeding, and it has not been directly affected yet.
It said, “All our local branches and offices continue to operate in line with local authorities’ guidance. As a precaution, colleagues in affected countries will continue to work from home for the time being, and travel to the region is suspended.”
It opened with the strongest opening of the GCC debt capital markets, which was influenced by Saudi Arabia. This performance topped over 30 billion dollars in January, and most considered it a sign of the region shaking off the fear of geopolitical confrontations.
Nevertheless, Fitch Ratings asserts that debt issuances in the GCC have declined dramatically since the Iran conflict began, and numerous deals are currently under freeze in a deteriorating economic environment and volatile markets.
The ratings agency opined that the trend will affect the trend in issuance of debts by emerging markets (EM) as the GCC is presently close to 40 percent of all EM dollar issues to date in 2026, without China.
“GCC debt capital market dynamics going forward will depend largely on the width, length, and depth of the conflict,” Bashar Al Natoor, Managing Director & Global Head of Islamic Finance at Fitch Ratings, explained. “While yields have widened in both bonds and sukuk since the onset of the war, the widening has been more pronounced among non-investment grade issuers, and MENA sukuk have continued to trade tighter than MENA bonds, reflecting sustained and broader demand.”
He reported, “Similar periods of yield widening have occurred in previous episodes of heightened geopolitical or Shariah-related uncertainty, but the current yield movements remain below peak levels seen in earlier conflicts. Historical experience shows that market access often resumes once stability returns. The region has already been tested by heightened geopolitical risks over the past two and a half years, and issuers have generally demonstrated resilience in navigating these challenges.”
The GCC was preparing to have a productive year of IPOs in 2026 after collecting $5.1 billion in the proceeds of 40 new issues last year. Kamco Invest reports that there are 73 offerings in the pipeline across the GCC this year, with Saudi Arabia and the UAE set to assume a lead in the ECM.
