Issue  No.63
29 February 2016

This report is designed to give you a snapshot about the MENA region tackling multiple issues:


          35.33  USD           1,229  USD


    Economic Outlook
  • Egyptian Finance Minister announced that the government aims at entering the international bond market by the end of June; yet, the final decision will depend on the economy's conditions at that time. He also added that, he expects a budget deficit this fiscal year between 11% and 11.5% of GDP.
  • Jordan's Department of Statistics indicated that the country's trade deficit dropped in 2015 by 14% compared to 2014. In addition, total exports dropped by 6.6% to reach 5.558 BN JOD, while, imports dropped by 11.3% to reach 14.43 BN JOD.
  • The Global Investment Outlook of 2016 published by the National Bank of Abu Dhabi (NBAD) expects a deficit increase in oil exporting countries for the year 2015-2016, due to the persisting supply pressure in the oil market resulting from the extra supply expected to come from Iraq and Iran. It also added that, Iran is expected to produce additional 500 K to 700 K barrels while Saudi Arabia is expected to increase its production from 1.5 MM to 2 MM barrels.
  • The UAE's ministry of energy announced that the country will reduce domestic prices for gasoline where the price of a liter of octane 95 gaoline will fall to 1.36 AED (37 U.S. cents) from 1.47 AED. While diesel prices will rise to 1.40 AED from 1.37 AED.
  • Oman's Undersecretary of the Ministry of Oil and Gas announced that the country is ready to cut its oil production by five to ten percent on the condition that every other producer agrees to do the same.
  • Saudi Arabia's Consumer Price Index (CPI) rose in January to 4.3% (Y-o-Y) reaching its highest levels in 5 years. It is believed that the rise in CPI was mainly due to increased energy prices which caused an increase in transport costs for other business that somehow lead to higher prices for consumer goods. It is worth mentioning that, housing and utilities' sectors reached 8.3% (Y-o-Y) in January 2015 compared to 4% in December 2014; recording the highest level in six years.
  • UAE will start implementing the value added tax (VAT) with a 5% rate starting January 1, 2018. The country will exclude 100 food items, education and healthcare from the tax. The country is expected to generate 12 BN AED from tax revenue. The framework agreement for the VAT is supposed to be finalized in June 2016, after which all GCC countries will have time to implement the tax starting from January 2018 to January 2019.
  • Dubai and India signed a Memorandum of Understanding in order to expand trading and enhance the ties between the two countries.
  • Bahrain launched a 600 MM USD bond, after the cancellation of last week's bond, which is divided into a 275 MM USD five-year tranche with a yield of 5.95% and a 325 MM USD 10-year tranche with a yield of 7.65%.
     Like us on Facebook                    View our profile on LinkedIn