IGA Capital Weekly Markets Update
- Joshua Hawley
- 7d
- 3 min read
For the week beginning October 13, 2025, global markets showed continued strength in equity and commodity valuations, while fixed income stability reinforces a period of measured optimism. The core focus remains on the trajectory of global rates and the unique investment environment in the UAE.
United Arab Emirates (UAE) Market & CRE
The UAE market presents a highly liquid and competitive environment for real estate funding.
EIBOR Pricing: The local benchmark EIBOR remains stable, with the 3-Month rate as of October 14, 2025, at 3.991300% and the 1-Month rate at 4.083810%. The market’s expectation of continued easing, following the Fed's cuts, suggests a favorable cost of capital environment for borrowers.
Financing Appetite: UAE commercial lenders, including large local banks, are demonstrating increased competition and favorable lending terms for high-quality real estate projects (residential, commercial, and mixed-use towers).
Lending Terms: Construction finance is readily available for new projects, with a typical promoter contribution requirement around 25-30%. Loan terms are priced competitively at EIBOR + 3-4%.
IGA Advantage: IGA Capital maintains an exclusive and highly competitive relationship with prominent UAE commercial lenders, enabling us to secure optimal terms and efficient processing (1-3 months) for construction and commercial financing.
Market Overview (U.S. & Global)
U.S. equity markets have sustained momentum. The S&P 500 closed at 6,655, gaining 1.0% over the last month. The Nasdaq jumped 2.8%, and the Dow Jones was flat over the same period.
Federal Reserve policy expectations continue to firm around a lower-for-longer environment. The Fed Funds Effective Rate is currently 4.10%. The probability for the rate to be in the 3.75%-4.00% range for the October 29, 2025 FOMC meeting has sharply increased to 91.9% from 85.1% the previous week. The market's implied policy rate is projected to fall to 3.10% by September 2026, aligning with an easing trajectory.
Fixed Income & Benchmarks (U.S. & Eurozone)
The 10-year U.S. Treasury yield is currently at 4.00%, reflecting a 6 basis point (bps) decrease over the last month. The yield curve remains steep, with the 2s/10s Treasury spread at 0.53% and the 5s/30s spread at 1.00% as of October 14, 2025. The 1-Month Term SOFR stands at 4.03%, and the current 30-Day Average SOFR is 4.13%.
The Eurozone’s benchmark, EURIBOR, provides a predictable cost of funds for Euro-denominated transactions. As of October 7, 2025, the 3-Month EURIBOR rate was 2.029%, with the 1-Month rate at 1.897%.
Commodities and Digital Assets
The precious metals rally accelerated this week. Gold surged to $4,128.84 (+13.6% 1M), and Silver climbed to $51.34 (+23.6% 1M).
As of today, October 15, 2025, Bitcoin (BTC) is trading near $112,536, continuing to consolidate at high levels following recent volatility.
IGA Capital Perspective
The ongoing trend of global rate normalization provides a sustained tailwind for well-structured investment and financing opportunities. The stability in regional interest rate benchmarks, combined with a clear increase in commercial lending activity for high-quality real estate projects in the UAE, creates a strong environment for debt origination. Our strategic relationships with local lenders allow IGA Capital to provide superior execution, competitive terms (EIBOR + margin), and efficient processing for construction and commercial financing. We advise clients to capitalize on the current convergence of liquid markets and favorable lending conditions to advance key project finance initiatives.
Footnotes and Disclosures:
Source: Bloomberg
Sources: Walker & Dunlop
Data on Fed Funds Rate Target Probabilities: CME Group
EIBOR Data (October 14, 2025): Central Bank of the UAE
EURIBOR Data (October 7, 2025): Financial News
Bitcoin Price (October 15, 2025): Real-time Crypto Exchange Data
UAE Finance Requirements: IGA Capital Brief (internal)
General Market Context: IGA Capital Brief, Fed News
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