Laurie McAughtry

International investors have long viewed Gulf fixed income as a formidable primary market with little secondary market depth. The region issues at enormous scale, but much of that paper has traditionally disappeared into buy-to-hold portfolios and rarely re-emerges. Easy to get in, harder to get out. It's a reputation that has shaped how investors sized their positions in the region. But it’s also, increasingly, out of date.

Over the past three years, Gulf trading desks have been transformed by rising foreign investment, a growing hedge fund presence, and Saudi Arabia's continued efforts to open its capital markets. Brokers that once relied heavily on voice-led, relationship-driven trading are investing in electronic execution infrastructure and algorithmic tools to keep pace with changing trading flows.

When missile alerts and falling drone debris briefly halted operations at Abu Dhabi’s Habshan Gas Complex this April, Gulf investors confronted a kind of volatility they were not positioned for. Oil prices surged on fears of disruption then retreated on news of ceasefire talks, but local equities and credit failed to stabilise. Unlike past crises, higher crude prices did little to cushion regional assets. The difference this time was not just the scale of the shock, but its location.