Analysis Energy Egypt aims to overcome obstacles to supplying more gas to the EU Depleting gas fields and soaring domestic consumption will stymie Egypt’s immediate efforts to boost Europe-bound energy exports – however, new exploration and additional pipelines could help it become a sizeable supplier to the EU later this decade. The EU has vowed to slash its imports of Russian gas by two thirds this year following Vladimir Putin’s […] November 17, 2022
Logistics Saudi’s shortage of warehouse supply sees rents surge 22% Warehouse rents in Saudi Arabia are soaring thanks to expanding manufacturing and retail activity in the kingdom. The International Monetary Fund in August predicted Saudi Arabia would be one of the world’s fastest growing economies in 2022, expanding 7.6 percent, its biggest increase in a decade. This boom is being felt in the warehousing sector. […] November 15, 2022
Sustainability Slump in plastic bag usage as Dubai tackles carbon footprint Plastic bag use has plummeted at UAE retail outlets operated by Majid Al Futtaim following the emirate’s introduction of a mandatory AED25 ($6.81) bag charge. In a small, but notable step towards reducing the UAE’s vast carbon footprint, Majid Al Futtaim said plastic bag use fell 85 percent in the three months since charges began […] November 12, 2022
Tourism Las Vegas’s Wynn Resorts confirms Gulf’s first casino in RAK Las Vegas’s Wynn Resorts will build a casino within its hotel complex on Ras Al Khaimah’s Marjan Island, the company’s CEO confirmed in an analysts call this week. Wynn announced plans back in January for the multibillion-dollar resort, which it said would be completed by 2026 and feature more than 1,000 rooms, a shopping mall, […] November 10, 2022
Tourism Emirates Group hires 10% more staff following record profits Emirates Group reported a record half-year profit on Thursday despite fuel costs trebling as passenger numbers soared and customers opted for premium seats. The Dubai-based conglomerate, which includes Emirates Airline and travel agent dnata, attributed its performance to strong demand for air travel following the gradual easing of Covid 19-related restrictions worldwide. Middle East airlines reported […] November 10, 2022
Banking & Finance Calculating hyperinflation is ‘top priority’ for Islamic banks Islamic banking’s top rule maker is racing to create a new accounting standard to calculate the impact of hyperinflation. Changes to sharia-compliant accounting practices could make some account holders liable for banks’ losses related to soaring prices. Under IFRS accounting standards, which are commonly used worldwide, there is a clause, IAS 29, that covers hyperinflation. […] November 9, 2022
Employment Higher wages in Emirates entice Filipino expats to invest Four-fifths of Filipino expats in the UAE plan to make investments in the next 12 months as rising wages and a strong dollar give them greater purchasing power back home. The UAE’s official population statistics do not provide a breakdown by nationality, although by unofficial estimates there are around 560,000 Filipinos living in the UAE, […] November 9, 2022
Analysis Manufacturing Saudi non-oil export orders rise at fastest pace for a year New export orders for Saudi Arabia’s non-oil sector in October increased at their fastest rate for nearly a year, the Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) survey revealed on Wednesday. This demand helped the PMI, which gauges business confidence, to climb 0.6 percentage points to 57.2 in October. A reading above 50.0 shows […] November 2, 2022
Analysis World Cup 2022 Bahrain set for surge in visitors from Europe’s World Cup giants Europeans are flocking to Bahrain this autumn, with flight bookings from Germany, France and the UK up significantly on pre-pandemic levels in what could be a World Cup windfall for the island’s tourism industry. As nearby Qatar prepares to host the tournament, which starts on November 20, an influx of tourists from defending champions France, […] November 2, 2022
Analysis Energy Ukraine war brings oil and gas underinvestment into sharp focus Oil and gas companies have slashed capital expenditure since a 2014 price crash and underinvestment will likely persist, despite the sector’s record profits this year, industry experts have warned. Saudi Aramco’s second-quarter net income of $48.4 billion was its largest since going public in 2019. ExxonMobil and Chevron and many other international oil companies also […] October 28, 2022
Analysis Abu Dhabi sovereign wealth fund to deploy more into private credit Abu Dhabi Investment Authority (ADIA) is upping its exposure to private credit to boost its returns, the world’s fifth largest sovereign wealth fund revealed in its 2021 annual review published on Thursday. Private credit has flourished since the 2008 global financial crisis as banks became more risk averse in their lending and interest rates plunged, […] October 27, 2022
Banking & Finance Islamic finance to grow 10%, but struggles in new markets The global Islamic finance industry will expand by 10 percent in 2022 and 2023 thanks to strong economic growth in core markets, high commodity prices and relatively little impact from the Russia-Ukraine war. However, data from S&P Global Ratings forecasts shows that the sector has struggled to make inroads in non-traditional markets outside the Gulf. Excluding […] October 27, 2022
Analysis Banking & Finance Mena debt market slumps in year of Fed hikes and high oil prices Debt issuance has plunged in the Middle East and North Africa this year, with interest rate volatility deterring would-be issuers and oil exporters’ huge fiscal surpluses reducing their need to offer bonds or sukuk. Mena debt sales in the first nine months of 2022 were $18.3 billion, down 80 percent year-on-year and the lowest total […] October 25, 2022
Aviation Qatar Airways wins UK court battle with aircraft seat maker A British court has ruled in favour of Qatar Airways in a dispute between the Gulf carrier and an Italian aircraft seat manufacturer. Sezze-based Optimares had sued Qatar Airways after the airline terminated a contract to buy made-to-order business and economy class seats for some of the Doha-based airline’s Boeing and Airbus aircraft. But a […] October 25, 2022
Analysis Banking & Finance Mena investment banking fees surge past $1bn for year so far JP Morgan and HSBC remain the top fee-earning investment banks in the Middle East and North Africa, a new report has found, although a further slowdown in mergers and acquisitions could help regional banks boost their share. Total investment banking fees in the Mena amounted to $1.05 billion in the first nine months of 2022, […] October 24, 2022
Energy Gulf petrochemical giants well placed to weather tough economy Petrochemical companies in the Gulf have safe credit ratings despite rising interest rates and higher energy costs. S&P Global reported this week that Saudi Arabia’s SABIC and Industries Qatar (IQ), which are both ultimately state-controlled, benefit from low feedstock prices, strong shareholder support and “solid bases” of customers. Feedstock is raw material used for processing […] October 21, 2022
Markets Gulf countries defy global gloom with bond sale plans Saudi Arabia, Mubadala and Emirates NBD are preparing to sell bonds and sukuk, despite market volatility that has put off other issuers October 18, 2022
Analysis Energy Saudi’s 2030 clean electricity target behind schedule Saudi Arabia will fall far short of its goal to generate half its electricity from renewables by 2030, industry analysts warn. The kingdom has made bold environmental promises, pledging to become net zero in terms of carbon emissions by 2060, while in March 2021 crown prince and de facto ruler Mohammed bin Salman reiterated the […] October 14, 2022
Banking & Finance UK firm launches fund to invest Lebanon’s ‘trapped dollars’ A British asset management firm has launched a fund that enables Lebanese bank customers to reinvest their trapped savings in local exporters, generating new dollars that will be repaid to investors and help ease the country’s yawning current account deficit. Several Lebanese citizens have taken up arms to withdraw their own savings from local banks […] October 13, 2022
Analysis Banking & Finance UAE government’s IPO juggernaut raises $13.3bn and counting A flurry of government-backed initial public offerings (IPOs) on the Dubai and Abu Dhabi stock markets has helped rejuvenate UAE bourses, as local and international investors seek exposure to the country’s buoyant economy. While Europe and the US fret over soaring inflation and likely recession, and most emerging market currencies wilt versus the dollar, Gulf […] October 12, 2022
LONG READ Banking & Finance Lebanon’s banking crisis can only be solved with political reforms Lebanon’s banking sector is in ruins, with little progress made in reforming the ailing industry, whose collapse has helped plunge four-fifths of the country’s population into poverty and forced many citizens to take up arms to withdraw their own savings from banks. Having imposed unofficial capital controls following an unravelling of the Lebanese pound’s longstanding […] October 10, 2022
Analysis Energy Hopes rise in Beirut of a deal to end border dispute with Israel Lebanon appears to be nearing an agreement with Israel over their disputed maritime border, which could kick-start long-delayed oil and gas exploration. A deal between the longstanding foes could provide some rare cheer in Lebanon, which is reeling from hyperinflation, the collapse of its banking sector and currency, and soaring unemployment. More than 80 percent […] October 4, 2022
