Middle East
GCC States’ Deficits Set to Rise Sharply Due to Pandemic Disruption - Fitch
The twin shock of coronavirus and plummeting oil prices have put the brakes on global growth. Combined with widespread outflows, a strengthening US dollar and a global recession, emerging markets face an unprecedented flurry of headwinds. According to a recent report from Fitch, weaker rated GCC sovereigns may be vulnerable to a downgrade in the current market conditions.
23 Apr 2020
OPEC Deal will Reduce Uncertainty for Saudi Arabia but Macro Will Pay a Heavy Price – Goldman Sachs
An historic deal between OPEC+ and the G20 last weekend may not be sufficient to lift oil prices materially in the near term given the scale of decline in global demand for oil, according to research from Goldman Sachs.
19 Apr 2020
Sukuk Issuance to Plummet in 2020 – S&P
A toxic cocktail of low oil prices and widespread disruption caused by the COVID-19 pandemic looks set to severely inhibit sukuk issuance in 2020, according to a recent report from S&P.
15 Apr 2020
Pandemic to Squeeze Margins at GCC Banks – S&P
The COVID-19 pandemic combined with the subsequent slump in oil prices is a particularly dangerous combination for GCC economies given the region’s exposure to commodity prices. According to a report from S&P, the region’s banks face an earnings shock, with a notable slowdown in credit growth and higher risk premiums – although other key metrics remain strong.
14 Apr 2020
With No Sign of Oil Prices Rising Anytime Soon, Stability in the Gulf is Likely to be Tested
As revenues slump and deficits soar, analysts are growing increasingly concerned about some of the Gulf’s more vulnerable economies.
9 Apr 2020
Qatar Reopens GCC Capital Markets with USD10bn Trade as Other Sovereigns Consider Raising Funding
Qatar has returned to the capital markets with the sale of a USD10bn Eurobond, marking the latest issuance from EM sovereigns returning to the markets.
8 Apr 2020
Tabreed Acquisition of Emaar-Owned Dubai District Cooling Business 'Credit Positive'
The National Central Cooling Company PJSC, better known as Tabreed, acquired an 80% stake in Emaar-owned Downtown Dubai district cooling business from the real estate giant in a deal valued at AED2.48bn, a deal fund managers described as a win-win.
7 Apr 2020
MENA PMIs Fall Sharply as Supply Chain Disruption, Output Decline Dampens Sentiment
PMI readings for the UAE, Saudi Arabia and Egypt treaded further into negative territory this week as businesses continue to come to grips with declining sales and supply chain disruptions.
6 Apr 2020
Sustainability Has Never Been More Influential on Capital Deployment
There is a growing need for companies to prioritise environment, social and governance (ESG) factors as investors now view these as important factors when assessing risk and deploying capital. This is especially relevant in regions which are highly dependent on extractive or carbon-intensive sectors.
6 Apr 2020
Celebrating Excellence and Innovation in the Capital Markets: A Look at the 2020 Bonds, Loans & Sukuk Middle East Awards Winners
This year’s Bonds, Loans & Sukuk Middle East Awards saw no shortage of firsts as the region’s borrowers and finance professionals pushed the boundaries of the possible through new structures and techniques in a range of transactions.
2 Apr 2020