Commodities Set To 'fizzle' Amid Coronavirus Threat, Says Mubadala Exec

Mubadala deputy CEO Waleed Al Mokarrab Al Muhairi says coronavirus makes it harder for investors to decide where to put their money

Commodities markets are set to “fizzle” as the coronavirus crimps business worldwide, according to a top executive at Abu Dhabi’s government-run fund Mubadala Investment Co.
Falling commodity prices are a risk for emerging economies that rely on the production of raw materials, and investors in these markets should “be a little bit cautious,” said Mubadala deputy CEO Waleed Al Mokarrab Al Muhairi on Tuesday in Abu Dhabi.
The uncertain outlook for the coronavirus makes it harder for investors to decide where to put their money, he said.
The disease is hurting economic expansion as airlines cancel flights and factories look elsewhere for components they would have bought from China, where the coronavirus originated.
Growth in demand for oil was already fragile amid a supply glut, and benchmark Brent crude has tumbled 18 percent this year.
“Commodities are going to be impacted,” Al Muhairi said. “You see that in aluminum, you see that in iron ore, you see that in oil.” Manufacturers are already shifting some operations and supply chains away from China, he said.
Middle Eastern oil-producers need to continue efforts to diversify their economies and prepare for a future when sales of crude generate less income, Al Muhairi said.
Mubadala is part of Abu Dhabi’s plan to invest in new technologies and manufacturing that can create jobs and reduce the emirate’s reliance on oil. The fund invests in industries including natural gas, chemicals, metals and manufacturing from Latin America to Asia.
Al Muhairi is still bullish on Brazil and other big emerging markets with broad-based economies. To survive volatility in commodity prices, investors need to target countries that have a variety of industries and don’t depend solely on output of raw materials, he said.
For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.Emicool Secures First-ever Green Financing To Boost Sustainable Growth
The liquidity generated will be strategically deployed to accelerate the company’s district cooling projects across t... Read more
UAEs Ruya Becomes First Global Islamic Bank To Offer Shariah-compliant Crypto Trading
Digital Islamic bank ruya teams up with Fuze to offer secure, ethical crypto investments aligned with Islamic financial... Read more
Startups In Abu Dhabis Hub71 Secured $2.17bn In Funding Last Year
Hub71 startups in Abu Dhabi saw massive increase in funding in 2024 as innovation economy thrives Read more
UAE Fintech Pay10 First To Launch On Central Banks Open Finance Framework
The company has acknowledged the Central Bank of the UAE's crucial role in facilitating a responsible and secure rollou... Read more
PayPal Expands In MEA Region With Its Newly Launched Hub In Dubai
Will serve 80 countries in Middle East and Africa from its Dubai Internet City hub; Has signed several deals with regio... Read more
New Board Certifies DMCC Tradeflow As Fully Shariah Compliant
Shariah Supervisory Board appointed to oversee Tradeflow’s Islamic finance offering; Certified fully-compliant with A... Read more