Banking and Finance US warns UAE banks to swerve Russian deposits The US has warned UAE banks to be more proactive and take extra care when dealing with Russian clients, or the emirates may face stateside sanctions. Addressing a roundtable of the United Arab Emirates Banks Federation during a two-day visit to the country, Wally Adeyemo, deputy secretary of the US Treasury, commended UAE-based financial institutions […] June 23, 2022
Banking and Finance UAE eyes dollar bonds to fill $600m 2022 budget deficit The United Arab Emirates is in the market with a two-tranche U.S. dollar-denominated bond sale comprising a 10-year tranche and 30-year Formosa portion, a bank document showed on Thursday. Initial price guidance was around 125 basis points (bps) over U.S. Treasuries (UST) for the 10-year paper and around 200 bps over UST for the Formosa […] June 23, 2022
Markets Fed chief backs another interest rate increase Chicago Federal Reserve Bank President Charles Evans on Wednesday signaled he would likely back another big interest rate hike in July unless inflation data improves, saying the Fed’s top priority is to “take the steam” out of price pressures. “Seventy-five (basis points) is a very reasonable place to have a discussion,” Evans told reporters after […] June 23, 2022
Markets Saudi bank stocks drop as Gulf markets follow lower oil prices Stock markets in the Gulf retreated on Wednesday, tracking crude prices, and as global sentiment was weighed by persistent worries that rising interest rates would trigger a global recession. Saudi Arabia’s benchmark index slid 2.9 percent, posting broad-based declines, dragged down by Al Rajhi Bank a 4.3 percent drop and a 2.9 percent decline in […] June 23, 2022
Analysis Electric vehicles cost more to insure than petrol cars in the UAE Electric vehicles (EVs) are more expensive to insure in the UAE than their traditional fuel-powered alternatives. This is due to the higher number of claims, cost of repairs and parts, and the fact that some drivers are not used to them, industry experts told AGBI. “It’s true that some insurers price electric and hybrid car […] June 23, 2022
Analysis A UK recession may spook Arab investors – or present an opening The economic outlook for the UK has grown progressively bleaker over recent months. After contracting 0.1 percent in March, Britain’s economy shrank by a further 0.3 percent in April, marking the first back-to-back declines since the onset of the global pandemic in March 2020. Last week the pound plunged to its lowest level against the dollar […] June 23, 2022
Markets Kuwait crown prince dissolves parliament, calls for early election Kuwait’s crown prince on Wednesday dissolved parliament and called for an early election following a stand-off between the government and elected assembly that has hindered fiscal reform. Crown Prince Sheikh Meshal al-Ahmad al-Sabah said in a televised speech that decrees would be issued for the dissolution of parliament, the Gulf region’s oldest and most lively, […] June 22, 2022
Oman offers to buy $1.75bn of outstanding bonds Oman has announced a tender offer to purchase for cash up to a total of $1.75 billion of several of its outstanding bonds, excluding accrued interest, a bank document showed on Wednesday. Oman reserves the right to increase or decrease the aggregate tender amount and accept or reject any offers, the document from one of […] June 22, 2022
Analysis From chocolate to solar power, the UK-GCC trade deal is a winner A trade deal between the United Kingdom and the Gulf region has the potential to support jobs “from Dover to Doha”, while building vital green industries and supplying innovative services to the GCC. That’s according to UK Trade Secretary Anne-Marie Trevelyan, who today launched free trade negotiations with the Gulf Cooperation Council, made up of […] June 22, 2022
Rising food prices sees UK inflation hit new 40-year high Soaring food prices pushed British consumer price inflation to a new 40-year high last month of 9.1 percent, the highest rate out of the Group of Seven countries and underlining the severity of the cost-of-living crunch. The reading, up from 9.0 percent in April, matched the consensus of a Reuters poll of economists. Historical records […] June 22, 2022
Banking and Finance Abu Dhabi firms invest $25m each in Elon Musk’s SpaceX Two Abu Dhabi-listed firms have invested $25 million each in California-based rocket manufacturer SpaceX, which was founded by Elon Musk, the world’s richest man. International Holding Company first invested in SpaceX in 2020 through private equity fund Falcon CI IV and yesterday confirmed it had put in an additional $25 million. “We are pleased to […] June 22, 2022
Egypt approves 2022-23 budget, expenditure to rise 15% Egypt’s parliament on Tuesday approved the state budget for the financial year that begins on July 1, with expenditure rising by 15 percent and the deficit by 14.5 percent. The budget reflects the government’s desire to continue Egypt’s development and improve the lives of its citizens despite recent economic shocks, Minister of Finance Mohamed al-Maait […] June 22, 2022
Global recession coming in 2023, says Qatari central bank chief Qatar central bank governor Sheikh Bandar bin Mohammed bin Saoud al-Thani warned on Tuesday the global economy may face stagflation this year and a recession by 2023. Speaking at the Qatar Economic Forum, he said continued supply side constraints could limit central banks’ potential for action. Finance minister Ali bin Ahmed al-Kuwari said Qatar may […] June 22, 2022
Jordan hopes for $3bn in deals from Saudi crown prince visit Saudi Crown Prince Mohammed bin Salman met with Jordan’s King Abdullah on Tuesday amid a thaw in relations after years of tension due to divergent views on regional conflicts and unfulfilled pledges of aid. The first visit to Jordan in years by the de facto ruler of Saudi Arabia comes at a time, officials say, […] June 22, 2022
Saudi crown prince to meet Erdogan to help repair relations Saudi Crown Prince Mohammed bin Salman visits Turkey for the first time in years on Wednesday for talks with President Tayyip Erdogan aimed at fully normalising ties that were ruptured after the murder of Saudi journalist Jamal Khashoggi. In April, Erdogan went to Saudi Arabia after a months-long drive to mend relations between the regional […] June 22, 2022
Britain launches free trade talks with Gulf countries Britain on Wednesday will launch talks over a new free trade deal with six Gulf states, the trade ministry said, in the latest set of negotiations aimed at increasing non-EU ties after Brexit. Trade minister Anne-Marie Trevelyan will visit Riyadh to begin discussions with the Gulf Cooperation Council (GCC), which is made up of Bahrain, […] June 22, 2022
Markets Saudi Arabia exchange has its biggest gain in more than a year Stock markets in the Gulf ended higher on Tuesday, pausing for breath after a steep sell-off, but major central banks’ rate hike plans and global recession risks kept investors cautious. Saudi Arabia’s benchmark index advanced 2.6 percent, its biggest intraday gain in more than a year, buoyed by a 3.4 percent jump in Al Rajhi […] June 22, 2022
Bahrain’s sovereign wealth fund eyes McLaren IPO within 3 years Bahrain’s sovereign wealth fund, Mumtalakat, which has a 60 percent stake in McLaren, expects the British racing team and supercar maker to go public in two to three years, its chief executive told Reuters on Tuesday. “The racing team has benefited from the growth and viewership so that side of the business has been doing […] June 22, 2022
Opinion New savings scheme could halt spend now, worry later culture Mindsets need to change if retirees are to enjoy their later years June 22, 2022
Opinion Banking and Finance Crypto scams are widespread – here’s how to protect yourself The UAE's standardisation of crypto transactions has boosted their leverage to buy real-world assets – but there are reasons to remain wary June 22, 2022
Analysis Banking and Finance Crypto crisis will weed out the Gulf’s weak players, say analysts The region’s cryptocurrency industry has grown rapidly – and is now being hit hard by the worldwide plunge in prices, but experts and businesses are welcoming the shake-up The value of the cryptocurrency market has slumped by more than $2 trillion since November, with bitcoin’s price dropping 70 percent and some in the sector laying […] June 22, 2022
Kuwait’s $700bn fund says global markets will ‘go down further’ Kuwait Investment Authority (KIA) is waiting for a further expected decline in global markets before deploying investments and believes that will be before the end of the year, Managing Director Ghanem Al-Ghenaiman said on Tuesday. Ghenaiman, speaking at the Qatar Economic Forum organised by Bloomberg, said he believes markets will “go down further from here”. […] June 21, 2022
