Issue  No.57
18 January 2016

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


        28.4  USD        1,089  USD


    Economic Outlook

  • In response to the fall in oil prices, Bahrain government has decided to increase domestic gasoline prices. The regular fuel will be priced 0.125 BHD per liter instead of 0.090 BHD, and the super fuel will be priced 0.160 BHD per liter instead of 0.100 BHD.
  • According to the Department of Statistics (DoS), Jordan's Inflation in 2015 has dropped by 0.9% compared to 2014. In addition, the average consumer prices in December 2015 dropped by 1.6% compared to the same month in 2014. It's worthy to mention that the DoS will start using 2010 as the base year when calculating inflation instead of 2006.
  • According to the Central Bank of Egypt, the government has sold a worth of 897.9 MM USD in one-year treasury bills with an average yield of 3.248%
  • Analysts are expecting unrest in the Middle East and Africa (MEA) region economy as a result of the broken ties between Saudi Arabia and Iran, since the two countries have import-export ties. It's worthy to mention that the volume of Saudi Arabia exports to Iran was 102 MM USD by the end of 2014 and the size of imports from Iran was 181 MM USD
  • Gulf Arab States are finalizing the draft law on value-added taxes (VAT) that will be implemented starting from 2018. Each state of the six Gulf States will have their own VAT law, falling under the Gulf Cooperation Council law.
  • According to the Arab-Brazilian Chamber of Commerce (ABCC), the total Brazilian machinery exports to Arab countries increased in 2015 by 7%  to reach 226.3 MM USD, compared to 211.43 MM USD in 2014. It is worth noting that the main importing countries were Egypt, Saudi Arabia, and UAE
  • The government of Oman completed a loan worth 1 BN USD, with a margin of 120 basis points over London interbank offered rate (Libor). It is worth mentioning that Oman was using 110 basis points over Libor before, but they had to increase the margin as investors are currently demanding more return after S&P had downgraded the country's debt.
  • Iraq has signed IMF monitoring program in order to push the foreign reserves down from 59 BN USD in October 2015 to reach 42 BN USD in 2016. The aim behind this drop is to finance the balance of payment deficit.
  • Qatar faced 2.7% increase in prices in 2015. According to the Ministry of Development Planning and Statistics, the cost of education increased by 18% and tobacco prices by 6.3%, transportation by 3.1%, food and beverages by 0.7%, and communication (phones) by 3.2% compared to the previous year.
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