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- HSBC Reviews Palantir Investment in Sharia Fund; Gulf Hiring Bounces Back 2%; DIP Faces Investor Pressure on Dubai IPO Valuation
HSBC Reviews Palantir Investment in Sharia Fund; Gulf Hiring Bounces Back 2%; DIP Faces Investor Pressure on Dubai IPO Valuation
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Friday, October 23, 2026
Happy Friday everyone!
Global ethical investing reviews, regional labor market recoveries, and equity listing discussions lead Middle Eastern business headlines today. HSBC Asset Management initiated a review into whether to remove US data firm Palantir from its $9 billion Sharia-compliant investment fund following concerns raised by major UK pension schemes. In regional recruitment, the Cooper Fitch Gulf Employment Index showed hiring activity across the GCC rose 2% in Q3 2026, led by a 4% recovery in the UAE. Meanwhile, DIP Holding Plc faces calls from institutional investors to adjust its valuation expectations to offer higher dividend yields for its landmark Dubai initial public offering.
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HSBC Reviews Palantir Holding in $9 Billion Sharia Investment Fund
🔹 What Is It About
HSBC Asset Management is reviewing its holding in US technology firm Palantir Technologies within its $9 billion Sharia-compliant equity fund. The decision follows inquiries from major UK pension funds, including workplace provider Nest, after reports highlighted the fund held $38.3 million in Palantir shares alongside other holdings linked to military supply chains. HSBC confirmed it is working with independent advisers to review whether the company aligns with its Sharia investment guidelines.
Reviewing Tech Holdings: HSBC initiated an independent review of its $38.3 million Palantir position within its flagship Sharia equity fund.
Responding to Pension Inquiries: The review follows concerns raised by major institutional investors, including UK pension scheme Nest.
Consulting Independent Advisers: The bank engaged independent Sharia scholars to evaluate compliance across portfolio companies.
🔹 Why It Matters
Institutional reviews of tech holdings in ethical funds show how screening standards are expanding beyond basic screens to include military contracting. For Sharia-compliant asset managers, maintaining investor confidence requires applying strict screening procedures across international technology equities. The review highlights growing institutional pressure on global fund managers to align corporate holdings with ESG and ethical mandates.
Tightening Ethical Screening: Institutional pressure is forcing fund managers to audit military and technology supply chain exposures.
Protecting Halal Credentials: Ensuring strict compliance safeguards institutional capital flows into Islamic equity funds.
🔹 What’s Next
HSBC’s independent Sharia board will publish its assessment regarding Palantir's eligibility for inclusion in Islamic equity indexes. Pension fund managers will review the findings before deciding on future capital allocations.
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The ice cream shop that makes money when it's cold
28 Wishes sells ice cream in Los Angeles. Below 70°F, sales fall about 20%. The weather is out of their hands. Rent isn't.
So the owners started putting about $20 a day into Kalshi weather markets, taking the cold side. The days that keep customers away now pay something back.
This is hedging. Big companies have done it for decades, buying protection against bad weather, fuel spikes and rising rates. It used to take a broker, a trading desk, and an order size no corner shop could meet.
Kalshi opens it up. Contracts on weather, fuel prices, inflation, tariffs and regulation, starting at a few dollars. Take a position on the outcome that would hurt you. If it hits, the payout softens it. If it doesn't, the contract expires and the good month was the point.
Gulf Hiring Rebounds 2% in Q3 2026 Led by Strong UAE Recovery
🔹 What Is It About
Recruitment firm Cooper Fitch released its Q3 2026 Gulf Employment Index, showing regional hiring rose 2% after a 3% decline in the second quarter. The UAE recorded the strongest recovery across the six GCC markets, with hiring growing 4% supported by public sector projects and multi-year contract awards in energy. Regional energy hiring led all industries with a 7% increase, while strategy and finance roles rose 6% and 5% respectively.
Leading Regional Recovery: UAE hiring grew 4% in Q3, making it the top-performing market in the GCC.
Driving Energy Recruitment: Energy sector hiring expanded 7% across the region following multi-year contract awards.
Tracking Country Trends: Saudi Arabia grew 1.5% and Oman gained 0.5%, while Qatar, Kuwait, and Bahrain saw minor contractions.
🔹 Why It Matters
A return to job growth across primary sectors demonstrates the resilience of non-oil Gulf economies following temporary market slowdowns. Resuming paused hiring mandates across energy, real estate, and public infrastructure projects signals renewed corporate confidence. However, persistent talent shortages in specialized technical fields require employers to offer competitive packages to secure key project directors and contracts leaders.
🔹 What’s Next
Gulf businesses will advance workforce planning schedules for 2027 to address operational backlogs from earlier in the year. Human resource leads will focus on securing specialist candidates already based within regional markets.
Advancing 2027 Planning: Executive boards will approve expanded headcount targets to catch up on project delivery.
Investors Urge DIP Holding to Sweeten Dividend Yield Ahead of Landmark Dubai IPO
🔹 What Is It About
Institutional investors evaluating the upcoming initial public offering of DIP Holding Plc are pressing the firm to lower its valuation targets to boost dividend yields. Sole shareholder Dubai Investments PJSC plans to list a 20% stake in the industrial and commercial park operator, marking Dubai’s first public listing of the year. While banks pitched pre-discount valuations between AED 11 billion and AED 14 billion ($3 billion to $3.8 billion), investors are seeking dividend yields closer to 7.5% or higher to offset geopolitical market risks.
Seeking Valuation Discounts: Investors are pushing for lower entry valuations to raise implied dividend yield payouts.
Promising Multibillion Dividends: DIP Holding pledged $592 million (AED 2.175 billion) in dividend payouts across the next three years.
Highlighting Stable Revenues: Management emphasized that long-term land leases provide predictable, low-capex rental income.
🔹 Why It Matters
Investor discussions surrounding DIP Holding’s valuation will set pricing expectations for upcoming equity listings across UAE exchanges. Offering competitive dividend yields is necessary to attract institutional capital into regional public equity markets during periods of global uncertainty. Successfully pricing Dubai's first IPO of the year could encourage parent company Dubai Investments to proceed with planned spin-offs for subsidiaries like Emirates Glass and Emicool.
Setting Pricing Benchmarks: The final IPO valuation will establish pricing references for prospective UAE public listings.
🔹 What’s Next
DIP Holding and its financial advisers will review institutional feedback before setting the formal price range for bookbuilding. Dubai Investments executives will monitor post-listing trading performance before finalizing spin-off schedules for additional portfolio companies.
Evaluating Future Spin-Offs: Management will prepare documentation to list additional industrial subsidiaries in 2027.
👨💻From Smashi Business’ Desk
Dubai-born fragrance brand KAYALI will enter China on October 15.
Saudi-born dining platform SPICE has ruled out offering cashback on shisha or alcohol at partner restaurants as it keeps its rewards model aligned with Islamic principles.
Uber will invest $50 million in Jordan over the next three years, targeting the country’s mobility ecosystem while supporting economic opportunities, tourism and access.
Dubai Crown Prince HH Sheikh Hamdan just shared his Etihad Rail ticket on Snapchat as Dubai-Abu Dhabi passenger services prepare to launch on September 30.
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🔍In other news…
UAE and France deepen defence ties with Rafale F5 fighter-jet deal
Abu Dhabi and Qatar funds back Jio IPO
Weight-loss drugs Mounjaro and Foundayo to be packaged in UAE
Bahrain and France to co-develop civil nuclear energy
UAE is powering along with US technology co-operation, Yousef Al Otaiba says
Hormuz could be 'redundant' in five years, replaced by new routes, HSBC CEO says
Syria’s first DNA-based identifications offer hope for families of the missing
🦄 World of Startups
Echelon: Riyadh AI firm Echelon names East40, RAED Ventures, Avra and Ben Horowitz as backers.
MNT-Halan: MNT-Halan prices its EGX IPO at EGP 24.50 per share, valuing the 20% stake at EGP 7.84 billion.
Project Suppliers: Saudi platform Project Suppliers raises $1 million in pre-seed funding to develop AI cash-flow tools.
MoneyHash × VaultsPay: MoneyHash merchants can now accept VaultsPay’s UAE card and wallet payments without separate integration.
TiE Women MENA: Five startups win regional TiE Women MENA tracks and advance to the GITEX Global final.
Sheraa × Nestlé UAE: Sheraa, Nestlé UAE, MAJRA and UAE Food Cluster launch a three-month programme for young founders.
