Economy Lebanon steps back from plan to slash official exchange rate Lebanon has stepped back from plans to slash its 25-year-old official exchange rate with one closer to the market rate, ministerial and political sources said Thursday, amid fears of a backlash from the public. Caretaker finance minister Youssef Khalil told Reuters on September 28 the state would re-peg the dollar from 1,507 to 15,000 pounds […] November 4, 2022
Economy Moody’s upgrades Qatar outlook on higher energy prices Ratings agency Moody’s has upgraded Qatar’s credit outlook to positive from stable, citing higher energy prices expected to bring significant budget surpluses that will help the Gulf state to manage its medium-term debt profile. Qatar, which hosts the 2022 FIFA World Cup this month, is one of the world’s largest exporters of natural gas and […] November 4, 2022
Analysis Economy Gulf rate hike: Good for gold and bonds, bad for credit Gulf companies have been able to absorb rising interest rates but as regional central banks follow the US Federal Reserve’s latest hike, borrowing appetite is likely to be subdued. It may, however, be good for gold, bank deposits and fixed income. Four of the Gulf states announced on Wednesday that they would increase their key […] November 3, 2022
Economy UK exports to Arab countries up 20% to $38bn in 2022 The UK’s exports to Arab countries have posted a 20 percent year-on-year increase, standing at £33.6 billion ($38.26 billion), and are expected to rebound to pre-pandemic levels. “While exports have remained broadly flat between 2020 and 2021, we have seen a 20 percent recovery so far this year and we anticipate that our total trade […] November 3, 2022
Economy Kuwait to use budget surplus to replenish fund to cover deficits Kuwait will use an expected budget surplus for fiscal year ending March 31, 2023 to replenish its general reserve fund (GRF), its finance minister said, after running down the GRF during the COVID-19 pandemic when oil prices dropped. The oil-producing Gulf state’s parliament on Tuesday approved the 2022/2023 government budget after a delay caused by […] November 3, 2022
Economy Turkish manufacturing in worst slowdown since May 2020 Turkey’s manufacturing sector slowed for the eighth consecutive month in October, experiencing its most precipitous drop since May 2020. Analysts see no end in sight for the country’s inflation problem, which is weighing down manufacturing and the wider economy. The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI), compiled by ratings agency S&P […] November 1, 2022
Economy Bahrain and Israel hope to seal free trade deal by year-end Israel and Bahrain hope to seal a free trade agreement before the end of the year, officials from both countries said on Monday. Israel normalised diplomatic relations with Bahrain and its Gulf neighbour the United Arab Emirates (UAE) two years ago under US sponsorship. While economic ties with the UAE has since taken off, Israel’s […] November 1, 2022
Economy Influx of rich expats pushing up UAE inflation, says IMF panel The influx of affluent migrants into the UAE has contributed to the country’s rising inflation, but also presents new opportunities for the Gulf state. A Henley Global Citizens report published in August forecast that the UAE will record the largest net inflow of millionaires on record, adding an additional 4,000 high net worth individuals this […] November 1, 2022
Economy Saudi Arabia’s Q3 GDP grows 8.6% boosted by higher oil prices Saudi Arabia’s gross domestic product expanded by 8.6 percent in the third quarter compared with the same period in 2021, according to initial government estimates on Monday, as the world’s top oil exporter benefits from higher energy prices. Growth was largely driven by a 14.5 percent increase in oil activities, the General Authority for Statistics […] November 1, 2022
Economy GCC current account surplus to hit $275bn on higher oil prices Gulf oil exporters are expected to put away around a third of their oil revenues over the next three years. Higher oil and gas prices are predicted to increase the average current account surplus in the GCC to 9.7 percent of GDP in 2022, according to the International Monetary Fund (IMF). This is up from […] October 31, 2022
Economy Egypt warns commodity hoarders of legal action as inflation rises Egyptian Prime Minister Mostafa Madbouly has warned against stashing, overpricing, or monopolising commodities in the local market on higher inflation, Ahram Online reported, citing a cabinet statement. He stated that violators will face strict legal action, and vowed to continue implementing monitoring mechanisms to manage the market and provide commodities. The prime minister ordered the […] October 30, 2022
Economy Tunisia to start tough economic reforms soon for IMF package Tunisia will soon enact difficult economic reforms that have been delayed for years, the central bank governor said on Saturday, adding that financial authorities were trying to keep the dinar currency stable. Tunisia this month reached a preliminary agreement with the International Monetary Fund (IMF) for a $1.9 billion rescue package that could be finalised […] October 30, 2022
Economy Turkey’s central bank hikes 2022 inflation forecast to 65.2% Turkey’s central bank has lifted its inflation forecast for the end of 2022 to 65.2 percent from 60.4 percent, governor Sahap Kavcioglu said on Thursday, marking the fourth rise this year, as he conceded that the bank had not been “very successful” in curbing price growth. Turkish annual inflation climbed to a 24-year high of […] October 28, 2022
Analysis Economy 70 multinationals secure Riyadh licence after Saudi HQ ruling A total of 70 international companies have so far been issued licences to relocate their regional headquarters to the Saudi capital Riyadh as part of a major push to attract more overseas investment. The updated figure, revealed in a new report by Saudi Arabia’s Ministry of Investment (Misa), represents a significant increase compared to a […] October 27, 2022
US firm Safanad to co-invest $200m in Mena education Safanad, a New York-based private investment firm, will co-invest with Global School Management (GSM) $200 million in the education sector in the Middle East and North Africa, they said on Wednesday. They committed “to invest significantly beyond this to acquire, manage and develop multiple charter, online, early learning, and K-12 private schools independently and in […] October 27, 2022
Economy Dubai’s BitOasis signs Mastercard deal for crypto-linked cards BitOasis, a Middle East-focused cryptocurrency exchange based in the United Arab Emirates, said on Tuesday it had signed an agreement with Mastercard to launch payment cards linked to cryptocurrencies, they said in a joint statement. The cards will allow BitOasis customers in the Middle East and North Africa to make purchases at points of sale […] October 26, 2022
Economy UAE’s total revenue rose 26% and spending up 1% in 2021 The United Arab Emirates’ (UAE) state revenues totalled AED463.9 billion ($126.3 billion) in 2021, up 26 percent from 2020, state news agency WAM reported on Tuesday, citing the finance ministry. State expenditure totalled AED402.4bn in the same period, up one percent on 2020, WAM said. The figures pointed to an overall surplus of AED61.5 billion […] October 26, 2022
Economy Kuwait delays budget approval until after elections Kuwait formally dissolved parliament in a decree issued on Tuesday, state news agency KUNA said, as the Gulf state’s crown prince moved to resolve a standoff between the government and elected parliament that has hindered fiscal reform. Last month Crown Prince Sheikh Meshal Al-Ahmad Al-Sabah, who took over most of the ruling emir’s duties, said […] October 26, 2022
Economy Rishi Sunak to be UK prime minister: What you need to know Rishi Sunak will be Britain’s next prime minister after his rivals quit the race, following one of the most turbulent periods in British political history. Politics Sunak, the 42-year-old former finance minister, will become Britain’s third prime minister in less than two months. His predecessor Liz Truss was brought down after just six weeks in […] October 24, 2022
Economy Saudi Crown Prince will not attend Arab summit in Algeria Saudi Crown Prince Mohammed bin Salman will not travel to Algeria next month to attend a summit of the Arab League on medical advice, the royal court confirmed in a statement on state media on Sunday. Doctors had advised Prince Mohammed, 37, to avoid long-haul flights that might affect his middle ear, said the royal […] October 24, 2022
Economy Sterling rallies as UK PM Liz Truss resigns over mini budget fiasco Sterling pared gains following the announcement that Liz Truss was resigning as prime minister of the UK. The country’s mid caps jumped as much as one percent as Truss, speaking outside the door of her Number 10 Downing Street office, said a leadership election would be completed within the next week. Truss appointment as UK […] October 20, 2022
Analysis Economy $35bn ‘locked’ in balance sheets of Middle East listed companies Listed businesses in the Middle East have experienced a rebound with revenues rising above pre-pandemic levels, but billions of dollars remain trapped on balance sheets due to working capital inefficiencies. The annual working capital study by PwC Middle East says the recovery has been driven by a strong response by the region’s governments to the […] October 20, 2022
