What I learned Finance Gulf business insights from 2022 and what to expect in 2023 In the context of the Ukraine war, the energy crisis, rising inflation and supply chain issues, the past year was certainly one of challenges and lessons for companies. Here, a selection of AGBI columnists and Gulf entrepreneurs reveal their business insights from 2022 and what they are looking forward to in the year ahead. Chris […] December 25, 2022
Economy Hungary imposes windfall tax on drug producers to plug deficit Hungary’s government has imposed a windfall tax on drug producers based on net revenues generated in 2022 and 2023, as it tries to plug holes in the state budget. According to a government decree late on Friday, the rate increases progressively, and will be eight percent on net revenues exceeding 150 billion forints ($398 million). […] December 25, 2022
Banking and Finance ECB must be ready to take the heat and raise rates further The European Central Bank (ECB) must be prepared to take the heat and raise interest rates further, including by more than the market expects, if that is needed to bring down inflation, ECB policymaker Isabel Schnabel said in an interview published on Saturday. The ECB raised rates for a fourth straight time last week and […] December 25, 2022
Banking and Finance World Bank approves $500m to expand social security in Egypt The World Bank’s executive board has approved $500 million in development financing for Egypt to expand its social safety net and protection programme in the face of global economic pressures filtering through to the country’s economy, the international cooperation minister said on Friday. The funds will support the government’s Takaful and Karama conditional and unconditional […] December 25, 2022
Banking and Finance Qatar to invest $2bn in Turkish eurobond issue in January Qatar is expected to buy $2 billion worth of Turkish eurobonds next month, delivering on an earlier agreement to shore up Ankara’s forex reserves, said two officials with knowledge of the matter. The Turkish economic officials, who requested anonymity, said Doha had already invested some $1 billion as part of that broader deal. In November, […] December 25, 2022
Analysis Banking and Finance Dubai key as 30% of UK’s VC investors target Mena in 2023 Nearly one in three UK-based investors plan to look towards the Middle East and North Africa for venture capital deals next year, according to new research. The region is the third most popular destination for planned investments during 2023 by UK decision makers who invest in venture capital, after their home market and North America. […] December 23, 2022
Analysis Banking and Finance UK and Saudi Arabia plant seed for closer ties on green finance Saudi Arabia has signed an agreement with the UK to foster greater cooperation on green finance as the kingdom looks increasingly at ethical funding for its transformative giga-projects. Jeremy Hunt, the UK’s chancellor of the exchequer, and Mohammed Al-Jadaan, the Saudi minister of finance, met on Tuesday in London to sign a memorandum of understanding […] December 23, 2022
Economy Combined economies of GCC will hit $6trn by 2050 The gross domestic product (GDP) of the Gulf Cooperation Council (GCC) economies will grow to $6 trillion by 2050, Oman Daily Observer reported, citing Nasser bin Rashid Al Mawali, under-secretary of the Ministry of Economy. He said that the total GDP of the GCC states is likely to hit about $2 trillion by the end […] December 23, 2022
UAE-based Fintech Galaxy acquires Egypt’s Underlie UAE-based Fintech Galaxy has acquired Underlie, an Egypt-based open banking platform offering application programming interfaces (APIs) to banks and businesses. The deal will help set up the company’s open finance and banking across the region, develop and launch new digital solutions and push financial inclusion forward. No financial details were given. Egypt is quickly becoming […] December 23, 2022
Markets Elon Musk to pause Tesla share sale for about two years Tesla chief executive officer Elon Musk has said he will not sell any more Tesla stock for about two years. While speaking in a Twitter Spaces audio chat, Musk said he foresees the economy will be in a “serious recession” in 2023 and demand for big-ticket items will be lower. His comments came after a […] December 23, 2022
Economy Turkey holds rate at 9% despite soaring inflation Turkey’s central bank held interest rates steady at nine percent on Thursday despite soaring inflation, fulfilling a pledge to end a brief but sharp easing cycle after President Tayyip Erdogan had called for single-digit rates. The bank, seen by analysts to respond to Erdogan’s will, repeated that inflation of near 85 percent should give way […] December 23, 2022
Economy Japan to unveil record $864bn budget driven by military costs Japan is set to unveil on Friday a record $864 billion budget for the next fiscal year from April, pushed up by increased military spending and higher social security costs for a fast-ageing population, according to a final draft reviewed by Reuters. The draft budget – to be endorsed by Prime Minister Fumio Kishida’s cabinet […] December 23, 2022
Economy Turkey raises monthly minimum wage by 55% for 2023 Turkey’s monthly minimum wage will be 8,506.80 lira ($455) in 2023, the presidency said on Thursday – a 55 percent increase from the level determined in July and a 100 percent hike from January. Speaking at a news conference earlier, President Tayyip Erdogan said the minimum wage may be hiked again throughout the year if […] December 23, 2022
Economy Egypt’s central bank ups interest rates amid inflation worries Egypt’s central bank hiked overnight interest rates by a greater-than-expected 300 basis points (bps) on Thursday, warning that inflationary pressures were building. The rate hike may signal the central bank may be preparing for a further weakening of the currency. The bank’s Monetary Policy Committee (MPC) raised the deposit rate to 16.25 percent and its […] December 23, 2022
Opinion A positive outlook for Middle East trade and investment in 2023 Over the next year the Middle East will continue to be a beneficiary of inward investment from companies looking for stability in energy costs and availability December 22, 2022
Economy Dozens of merchant ships stuck off Iran as payment snags bite Dozens of merchant ships with grains and sugar are stuck outside Iranian ports after weeks of delays as payments snags disrupt flows of goods into the country, according to trade sources and shipping data. Food is exempt from the West’s sanctions on Iran over its nuclear programme, but the impact of the sanctions on Iran’s […] December 22, 2022
Analysis UAE and UK commit to data bridge to boost $18bn trade links The UK and UAE are making “significant progress” towards building a robust data bridge which experts believe will create further opportunities to develop bilateral trade. The UK government and Dubai International Financial Centre (DIFC) said in a joint statement that they will work together to realise “the benefits of the important role that the trustworthy […] December 22, 2022
Economy Oman estimates spending at nearly $34bn in 2023 budget Oman’s 2023 budget estimates revenue at OMR 11.65 billion ($30.34 billion) and expenditure at OMR 12.95 billion, with a forecast budget deficit of OMR 1.3 billion, state-run Oman News Agency reported. The 2023 budget has been based on an average oil price assumption of $55 per barrel. Global economic and geopolitical developments were taken into […] December 21, 2022
Markets Bankers expect tough 2023 as IPO volumes at lowest since 2008 Investment bankers are bracing for another tough year ahead after losing out on lucrative fees from arranging stock sales, as the market for initial public offerings (IPOs) plummeted to its lowest level since the financial crisis of 2008. With questions swirling around monetary policy and the prospect of a looming recession, IPO advisers are not […] December 21, 2022
Banking and Finance Turkish central bank expands bond holding requirements Loans given to Turkish companies’ small- and medium-sized enterprise (SME) subsidiaries will be included when calculating the amount of bonds that lenders are mandated to hold, according to new regulations from the central bank. In a letter sent to banks and seen by Reuters, the central bank said that for the loans to be considered […] December 21, 2022
Banking and Finance Oman sovereign fund targets $5bn spend in 2023 Oman Investment Authority (OIA), a sovereign wealth fund, aims to spend OMR 1.9 billion ($4.95 billion) on investment projects in 2023, state media reported on Tuesday. The OIA said financing for the investment projects will come from the local and foreign private sector, from financing institutions, or from the agency itself or its subsidiaries. The […] December 21, 2022
Economy Egyptian shops face shortages as government acts to tame prices Supplies of basic foods at Egyptian supermarkets have been squeezed and some stores are rationing products, with shopkeepers blaming an import slowdown and speculation by traders as prices rise. Headline inflation has surged to five-year highs of more than 18 percent in Egypt, spurring many shoppers to cut back on purchases or switch to cheaper […] December 21, 2022
