Economy Gulf non-oil growth softens as costs and competition rise Non-oil business activity in Kuwait, the UAE and Saudi Arabia continues to grow, albeit at a softened pace. According to the latest business sentiment survey from ratings agency S&P Global, the overall softening in growth across the three Gulf states was largely a result of increased market competition, rising input costs and capacity constraints. In […] August 5, 2024
Economy Turkish car sales fall for fourth consecutive month Turkish vehicle sales slipped in July, as concerns over the economy, high costs of borrowing and car-sale taxes dented consumer sentiment. July car sales reached 94,000 units, according to a report released on August 2 by Turkey’s Automotive Distributors and Mobility Association (ODMD). The July figure represents a 17.5 percent year-on-year fall and marks the […] August 5, 2024
Opinion Economy Trump redux could bring in the law of unintended consequences Gulf states need to expect the unexpected as an 'America First' agenda could fragment global trade August 5, 2024
Banking and Finance Saudi Arabia to convert $10bn Egypt deposit to investment Saudi Arabia is planning to convert its $10 billion deposit with the Central Bank of Egypt (CBE) into an investment. The Saudi investment minister Khalid Al Falih announced the news during a meeting with Egyptian prime minister Mostafa Madbouly on Thursday. It follows a $35 billion agreement by the UAE sovereign wealth fund ADQ to […] August 2, 2024
Trade Turkey narrows trade deficit in first half of year Turkey’s trade deficit fell 30.5 percent in the first six months of the year after a drop in imports and inbound trade. Turkish exports totalled just over $126 billion, up 2.6 percent on the same period in 2023, according to data issued by state statistics agency Turkstat on July 31. This compared to imports of […] August 1, 2024
Economy Saudi Arabia’s GDP falls as revenue tightens Saudi Arabia’s economy contracted in the second quarter of 2024 as non-oil activity slowed amid retail pricecutting. However, the end of oil output cuts next year could give the country’s coffers a much-needed boost. The General Authority for Statistics said in its latest report this week that real GDP fell 0.4 percent compared to the […] July 31, 2024
Opinion Economy Trump 2.0 would trigger shockwaves in GCC and global markets Regional investors should factor in the potential impact of Trumponomics across every major asset class July 30, 2024
Economy IMF urges Egypt to expand private sector after loan release The International Monetary Fund completed a third review of Egypt’s extended fund facility on Monday, allowing government authorities to draw the equivalent of $820 million. Disbursement of the funds will mean that $1.64 billion of the total $8 billion loan has been received since it was agreed in March. The IMF praised the Egyptian government’s […] July 30, 2024
Opinion Oil & Gas Oil traders’ view from the beach is not entirely sunny There's a lot to think about over the summer, from luxury handbags to China's economy July 29, 2024
Finance UAE and Morocco sign Cepa terms to build on $1bn trade The UAE and Morocco have finalised the terms of a comprehensive economic partnership agreement (Cepa) to boost trade and investment relations. The Cepa aims to facilitate the free flow of goods and services by reducing and removing tariffs, eliminating unnecessary trade barriers, improving market access for services and easing customs rules, the UAE state-run Wam news […] July 29, 2024
Analysis Finance Morocco to beat 4% economy growth forecast for 2025 Morocco’s economy is expected to surpass the government’s medium-term growth forecast of 4 percent next year, finance minister Nadia Fettah Alaoui has said. GDP is projected to reach 4.6 percent in 2025 from 3.3 percent in 2024, driven by economic recovery worldwide, Morocco World News reported quoting the minister. The government had set a growth […] July 28, 2024
Economy Kuwait turns to budget deficit as oil income drops Kuwait reported a budget deficit of KD1.6 billion ($5.2 billion) in 2023-24 from a surplus of KD6.4 billion the previous year, the finance ministry said. Oil revenues fell to KD21.6 billion, down 19 percent, compared to KD26.7 billion a year ago, the state-run Kuna news agency reported, citing a ministry statement. The current year’s revenue […] July 25, 2024
Finance Turkey repays $5bn Saudi deposit to cut liabilities Turkey’s central bank has repaid a $5 billion deposit by Saudi Arabia as part of its plan to lower external liabilities. The amount was returned to the Saudi Fund for Development, received in 2023, the central bank said in a statement. “Our external liabilities have recently improved by $7 billion through the reduction of deposit […] July 25, 2024
Analysis Finance From taxes to FDI rules – how India’s budget affects the Gulf Prime Minister Narendra Modi’s first budget of his third term brings welcome news for international investors but mixed outcomes for non-resident Indians. Notable initiatives include abolishing the contentious “angel tax”, simplifying foreign direct investment (FDI) rules, increasing capital gains taxes and cutting gold import duties. Angel tax abolition: relief comes too late India’s finance minister […] July 25, 2024
Economy Tunisia approves $54m loan from Italy Tunisia has officially approved a €50 million ($54 million) loan from Italy to support its state budget for the current financial year. The loan was originally signed in April. It will be repaid over 40 years with a 31-year grace period and a zero percent interest rate. Tunisia’s current account deficit narrowed to 2.3 percent […] July 24, 2024
Economy Egypt external debt makes record drop Egypt’s external debt decreased by over $14 billion between December 2023 and May 2024, the steepest drop on record according to its Central Bank (CBE). External debt fell from a record high of $168 billion at the end of December to $154 billion at the end of May, a decrease of 8.4 percent. The drop […] July 23, 2024
Trade UAE to revive EU trade talks before year-end The UAE plans to restart trade talks with the European Union by the end of the year despite a broader agreement with GCC remaining on hold, according to a news report. The UAE has initiated the discussion both through the GCC and bilaterally, Reuters reported, quoting trade minister Dr Thani bin Ahmed Al Zeyoudi. NewsletterGet the […] July 23, 2024
Finance Signs of US recovery prompt Saudi Arabia to buy treasury bonds Saudi Arabia’s holdings of US bonds rose by 22 percent year on year in May, as the kingdom banked on an economic recovery in the United States. The May figure of $136.3 billion, released by the US Department of the Treasury, is the highest level of Saudi bond holdings since January 2022. The kingdom is […] July 23, 2024
Economy Moody’s upgrades Turkey’s credit rating by two notches Turkey’s efforts to improve its economic credentials and attract investment have been given a boost by the credit ratings agency Moody’s, after what the agency said was a return to a more balanced economic policy programme. In a statement on July 19, Moody’s said it had upgraded Turkey’s long-term foreign and domestic currency issuer and […] July 22, 2024
Analysis Economy Egypt seeks to treble foreign direct investment to $30bn Egypt’s new cabinet, formed earlier this month, wants to treble foreign direct investment into the country from the record $10 billion of FDI inflows recorded in 2022-23. The ambitious target of $30 billion in FDI during the current financial year, which began on 1 July, has been set as Egypt cuts budgets and slows down […] July 22, 2024
Economy ADQ: how Abu Dhabi’s ‘baby’ fund is finding its feet Abu Dhabi sovereign wealth fund ADQ may be the younger, smaller sibling of ADIA and Mubadala but there are no signs of an inferiority complex as it executes billion-dollar deals at home and overseas. Most notable was the $35 billion agreement signed with the Egyptian government in February this year to develop Ras El Hekma, […] July 19, 2024
Finance ADGM to cut fees for non-financial business by 50% Abu Dhabi Global Market (ADGM), a financial free zone in the UAE capital, will cut fees for non-financial businesses by 50 percent to minimise potential disruptions for businesses in Al Reem Island during the zone’s expansion phase. Starting January 1, 2025, fees for new registrations for non-financial licences will fall from $10,000 to $5,000, the […] July 18, 2024
