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Swatch Group’s first‑half figures underscore a deepening crisis in its key Asian markets after the Swiss watch‑maker disclosed a 7.1 per cent drop in sales, generating CHF 3.059 billion, falling short of market forecasts of CHF 3.2 billion. Operating profit plunged 67 per cent year‑on‑year to CHF 68 million, signalling an urgent warning to investors and management alike.

China, alongside Hong Kong and Macau, remains the primary weak spot, contributing 27 per cent of total revenues. Falling demand across these regions continues to undermine core sales and profit performance. Despite encouraging double‑digit growth in North America and market share gains in countries such as Japan, India and the Middle East, these gains have yet to compensate for the shortfall from Greater China.

Net profit attributable to owners collapsed to CHF 3 million, compared with CHF 136 million during the same six‑month period last year. This dramatic decline illustrates the scale of the downturn, making it Swatch’s worst half‑year performance in recent memory.

Analyst commentary has been scathing: Vontobel described this period as “an ugly half year for Swatch Group in all respects”. The fallout from slowed Chinese consumer activity has been compounded by negative currency effects—Swiss franc appreciation cut CHF 113 million from turnover relative to constant‑currency comparisons.

Adding fresh complexity, new U. S. tariffs threaten to raise costs on Swiss watch imports by up to 31 per cent. Industry stakeholders now warn that these levies could further weigh on margins, with retailers like Watches of Switzerland projecting a margin squeeze in the year ahead.

Beyond external pressures, a growing number of investors are scrutinising Swatch’s internal governance. Shareholder activism has surfaced, with calls for more oversight of the centrally controlled Hayek family, whose dual‑class voting structure remains a source of contention. Net profits collapsed by 75 per cent to CHF 219 million in 2024, but critics assert that this malaise runs deeper. GreenWood Investors, led by Steven Wood, has launched a push to join the board, advocating for brand revitalisation, governance reforms and a strategy pivot toward luxury exclusivity akin to Hermès and Ferrari.

Management, though addressing short‑term volatility, emphasises Swatch’s entrenched strengths. Its vertically integrated manufacturing, with over 150 production sites, and the success of the affordable MoonSwatch line demonstrate resilience. The company has pledged that cost‑cutting measures and a pipeline of new product launches—particularly in the U. S. and Japan—should drive a rebound in the second half of the year.

The first‑half slump follows broader downturns last year, when revenue declined 12.2 per cent to CHF 6.74 billion in 2024, and operating profit fell 75 per cent to CHF 304 million. That drop reinforced trading floor rumours of governance fatigue and brand dilution at high‑end labels like Omega and Breguet.

Economically, China’s consumer landscape remains unsettled. A combination of property market stress, slower GDP growth and official campaigns discouraging conspicuous consumption have dampened luxury spending. Swiss watch exports to China and Hong Kong plunged by double digits in early 2024, while only the lower‑priced Swatch line bucked the trend in the region, gaining 10 per cent in sales volume.

Swatch Group’s corporate ambition to maintain full production capacity and avoid layoffs during weak demand, while strategically commendable, has weighed on margins—especially in the production segment. Management asserts this decision safeguards long‑term capabilities and is now beginning to bear fruit, with production margins improving since June.

Mixed signs beyond China offer guarded optimism. North America posted record sales, Japan recorded robust growth, and emerging markets like India and the Middle East offered upside. These regions now form the central axis of Swatch’s recovery strategy.

DP World, Deendayal Port Authority and Polish tech firm Nevomo have formalised an agreement to pilot Nevomo’s MagRail system—a self-propelled, electric linear‑motor freight train—on a 750‑metre stretch at the port in Kandla. Signed on 15 July 2025 by top executives from each organisation, the deal marks India’s first experiment with autonomous magnetic rail freight within an operational port environment.

The partnership will pilot MagRail technology on existing railway tracks to autonomously transport containerised and bulk goods. Powered by electric linear motors, MagRail wagons eliminate diesel use, promising reductions in logistics time, operational costs and CO₂ emissions. The trial is designed to enhance port-hinterland connectivity and support India’s broader logistics modernisation under the National Logistics Policy and the PM‑Gati Shakti agenda.

DP World, a global supply chain specialist, is leading efforts to integrate this advanced freight solution. The Deendayal Port Authority—a significant multi‑cargo terminal under central government jurisdiction—is hosting the pilot to assess real‑world viability. Nevomo will provide its proprietary MagRailBooster system, designed for seamless integration with existing port rail networks. This three‑way collaboration reflects an alignment of private innovation and public logistics priorities.

According to Sushil Kumar Singh, chair of the port authority, the initiative represents “a strategic advancement in port infrastructure, enhancing capacity and operational efficiency to support growing cargo demands,” signalling strong institutional backing. Sultan Ahmed bin Sulayem, DP World’s group chairman and CEO, emphasised that MagRail will “reduce transit times and optimise infrastructure use,” adding value for customers while promoting sustainability.

Nevomo’s CEO, Przemek “Ben” Paczek, said the project would “showcase MagRail’s real‑world potential in boosting freight efficiency,” reflecting confidence in the technology’s applicability to closed‑loop logistics systems. Harj Dhaliwal, Nevomo’s Chief Business & Capital Programmes Officer, was credited with advancing the partnership. European rail specialists have already acknowledged MagRail’s promise in port and metro-campus settings.

Industry experts note that MagRail addresses several persistent bottlenecks in freight logistics: it offers rapid container shunting without the need for diesel road vehicles, improves yard cycle times, and integrates with existing rail infrastructure, minimising capital expenditure. The pilot’s green credentials also align with global port decarbonisation targets.

Situated at Kandla, which recently welcomed a large satellite terminal by DP World with a TEU capacity of 2.19 million, the trial supports the port’s expansion strategy. Officials hope that MagRail can help optimise operations across the new and existing facilities.

Planning documents suggest a phased implementation: initial tests on a limited 750 m section within the yard, followed by performance metrics on speed, energy use, reliability, and integration before broader deployment. Results from this pilot are expected to influence decisions on port rail automation nationwide.

This initiative positions India at the forefront of port logistics innovation within Asia. Similar systems have been deployed or tested in Europe, but this marks India’s first on‑site demonstration combining magnetic propulsion and autonomy in a live port. Industry observers see potential for replication at other major ports, boosting capacity and reducing carbon footprints across maritime‑logistics hubs.

Adoption of MagRail could revolutionise short‑haul freight by enabling fast, consistent and emissions‑free movement of containers between berths, storage yards, and hinterland connections. For DP World and the port authority, a successful trial could translate into scalable technology upgrades and competitive advantages in trade facilitation.

Abu Dhabi investment giant IHC has finalised the acquisition of eFunder, the digital invoice-financing platform, marking a decisive move into fintech for small and medium enterprises. The platform has been renamed Zelo and is targeting a $250 billion shortfall in SME credit across the Middle East and North Africa. It converts outstanding invoices into cash within 24–48 hours, and has already processed more than 9,000 transactions, deploying over $200 million in funding.

The deal enhances IHC’s strategy to diversify its portfolio into high-growth financial technologies. Zelo will now operate under IHC’s fintech and future-economy division, reinforcing Abu Dhabi’s ambitions as a leading regional hub for digital finance. According to the Abu Dhabi Global Market’s Financial Services Regulatory Authority, Zelo holds a full operating licence, enabling rapid scale across construction, logistics, healthcare, industrial services, and oil and gas industries.

Zelo’s founders, Deepak Sekar and Dhanush Arjun, launched the platform in August 2020 with a mandate to improve access to working capital for SMEs. It gained full FSRA regulatory approval after obtaining in-principle licence in early 2021. The platform achieved more than $100 million in financing across 6,000 transactions during its initial phase, before surpassing $200 million through 9,000-plus deals.

IHC chief executive Syed Basar Shueb emphasised the strategic importance of the acquisition: “SMEs are the backbone of a diversified and future‑ready economy. Through our strategic acquisition of Zelo, we are proud to support a platform that solves one of the most fundamental barriers facing SMEs, access to timely working capital.” He added the rebrand signals “a confident new chapter… aligned with IHC’s long‑term vision of building smart, scalable solutions and dynamic value networks that deliver real and lasting economic impact”.

Dhanush Arjun, CEO of Zelo, reinforced this message, stating: “Zelo exists to eliminate the wait. The wait for payments, the wait for growth, the wait for opportunity. … With IHC’s strategic backing, we’re accelerating that future.” He stressed that converting approved invoices into liquidity within 24–48 hours allows SMEs to avoid the cash flow bottlenecks that often hamper growth.

A study by the World Bank indicates that SMEs in emerging markets often wait between 60 and 120 days to receive invoice payments, inhibiting their capacity to expand or invest in new ventures. IHC’s acquisition directly addresses this challenge by offering digital-first funding with underwriting powered by AI-driven risk scoring and performance analysis.

Regional analysts observe that IHC’s move comes amid intensifying competition in the MENA fintech landscape. State-backed investors and sovereign wealth funds have been increasingly backing financial‑technology startups to accelerate digital transformation. The acquisition strengthens IHC’s position alongside peers in Abu Dhabi and Dubai, including Mubadala’s fintech interests and ADQ-backed projects.

IHC’s publicly listed status on the Abu Dhabi Securities Exchange and its recent earnings report highlighted a strategic pivot towards non‑oil sectors—spanning fintech, AI platforms, decarbonisation, and reinsurance. Zelo’s integration underscores this shift, offering synergies with IHC’s digital economy ambitions.

Within its ADGM base, Zelo plans to roll out new revenue‑based finance products, addressing future receivables in addition to existing invoice financing. The platform aims to expand its geographic footprint beyond the UAE, eyeing expansion into other MENA markets with acute SME credit gaps.

Zelo’s backers include both institutional and private-sector investors. Prior to acquisition, it closed a US$16.5 million Series A round led by IHC in September 2024, secured a multi‑year credit commitment, and earned recognition as a “Future 100 Startup” by the Ministry of Economy and a Deloitte Rising Star.

Market commentators describe this phase as a potential inflection point for fintech in the region. “Invoice finance is one of the fastest routes to unlocking SME potential, and Zelo is well‑positioned,” said a senior analyst. “With IHC’s capital and ecosystem support, rapid scaling is likely.”

Zelo’s existing performance traces a compelling upward curve—it started by funding e-commerce merchants and delivery‑aggregator vendors, then expanded to broader commercial invoices. Its AI‑based underwriting and automated platform enable pre‑approval decisions within 10 minutes and deployment in under 48 hours.

Other regional platforms, such as Dubai’s Beehive and Finvolve, have adopted peer‑to‑peer and supply‑chain financing models. Zelo’s integration through a major listed conglomerate differentiates it through access to IHC’s expansive corporate network and potential for cross‑sector collaboration across its portfolio.

IHC’s LinkedIn statement confirmed completion of the acquisition and rebrand, affirming the company’s commitment to “fintech innovation and SME enablement across the UAE”. The platform’s regulatory credentials, track record and ambition illustrate why it emerged as the firm’s fintech flagship.

Analysts expect Zelo to deepen its product scope in the coming months, potentially introducing dynamic funding and revenue finance solutions. They anticipate that further geographical rollout across GCC and North African markets could begin in early 2026, leveraging ADGM’s regulatory passporting as the platform scales beyond domestic boundaries.

GCC countries secured $3.4 bn from 24 initial public offerings in the first half of 2025, down 6% from $3.6 bn over 23 listings a year earlier, according to a report by Kuwaiti research firm Markaz. Saudi Arabia drove the surge, contributing $2.8 bn through 22 IPOs—an increase of 36% year‑on‑year—while the UAE and Oman saw more subdued performances.

Oil‑price volatility, US tariff threats and global trade uncertainty weighed on market sentiment, but issuance volumes rose. The number of offerings edged higher to 24 from 23 in H1 2024, illustrating issuer appetite amid wider economic headwinds.

Saudi listings captured 85% of the total proceeds, reinforcing its dominance in the regional IPO pipeline. The Kingdom raised $2.8 bn, up from $2.1 bn in the first half of 2024, with 22 issuances compared to 19 a year ago.

The UAE saw a substantial 88% drop in IPO proceeds, with just one public offering—Alpha Data—raising $163 m in Abu Dhabi. Oman followed with the debut of Asyad Shipping Company, generating $333 m on the Muscat bourse. No IPOs were recorded in Kuwait, Qatar or Bahrain during this period.

Sector analysis reveals the industrials segment led with $1.4 bn in proceeds, bolstered by Flynas and Asyad Shipping Company. Real estate followed with demand for development and construction offerings, while healthcare IPOs collected $505 m. Financial services and technology contributed $408 m and $204 m respectively.

Performance after listing was mixed. Ten of the 24 companies saw positive returns by the end of June. Asyad Shipping led the pack, with its stock surging 835% since its March 12 listing. Umm Al Qura in Saudi Arabia recorded a 51% gain. On the downside, Hedab Alkhaleej, Dkhoun National Trading and Service Equipment fell by 30%, 27% and 26% respectively. Flynas edged slightly lower by 0.2%, despite an initial dip.

Wider equity market performance across the region showed divergence. Kuwait’s bourse rose 18.1% year‑to‑date, followed by Dubai, Abu Dhabi and Qatar, while Oman, Bahrain and Saudi Arabia retreated by 1.7%, 2.1% and 7.6% respectively.

Geopolitical shocks—including renewed US tariff threats and oil price fluctuations— exerted pressure on national indices. On Monday, Saudi Arabia’s Tadawul shed 0.2%, while Dubai, Abu Dhabi and Qatar all fell in the range of 0.3–0.5%. Investors are watching US inflation signals and Fed decisions closely, given the peg of Gulf currencies to the dollar.

Despite softer proceeds overall, the strong issuance tally suggests issuers seized a narrow window before heightened uncertainty. A PwC analysis of Q1 showed GCC IPOs rose 33%, raising $1.6 bn from 11 deals, with Saudi Arabia capturing nearly 70% of that total.

Looking ahead, Saudi Arabia is expected to maintain momentum, driven by privatisation efforts and a diverse pipeline of government-linked listings led by the Public Investment Fund. The UAE is projected to ramp up activity in industrials and tech, while Kuwait is implementing regulatory reforms to stimulate listings.

Market analysts caution that global headwinds remain. PwC flagged how tariff announcements and macroeconomic instability continue to disrupt IPO sentiment globally. Within the GCC, sustained oil-price volatility and tightening monetary conditions add complexity.

Nevertheless, Gulf capital markets have demonstrated resilience. Encouraged by diversified sector participation and healthy post-listing gains, policymakers and market participants appear poised to capitalise on remaining windows of stability.