Issue  No.76
30 May 2016

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


        49.32  USD          1,209  USD


    Economic Outlook
  • The Egyptian government agreed to take a credit facility loan with 29 MM KWD from Kuwait Fund for Arab Economic Development. The aim of the loan is to finance the implementation of five water desalination plants in Sinai Peninsula.
  • Saudi Arabia's inflation rate has declined to 4.2% in April compared to 4.3% in March.
  • Qatar First Bank (QFB) is preparing to enter the Saudi Arabian market in the light of the Kingdom's vision 2030 to provide financial solutions and investment opportunities to shareholders and clients.
  • Qatar has sold 9 BN USD in Eurobonds, the biggest ever bond issue from the Middle East and its first sale in four years. Its worth mentioning that Countries in the region are tapping the bond market to plug fiscal deficits caused by low oil prices. Qatar in particular is in need for funds as it is engaged in 200 BN USD of infrastructure work required for hosting the 2022 FIFA World Cup.
  • The Egyptian Cabinet approved the Saudi donation to support Egyptian Economic Program amounted to 2.5 BN USD.
  • Oman has reportedly approved a 35% tax on petrochemical firms and increased taxation on liquefied natural gas companies to boost government coffers. The measures were approved in a joint session of consultative assembly Majlis Al Shura and the State Council. It is worth noting that the country has unveiled subsidy cuts, reduced benefits for public sector workers and increased fees to make up for the shortfall, following a 4.5 BN OMR deficit last year.
  • Dubai's Roads and Transport Authority has awarded a 703 MM AED contract for phases four and five of the upcoming Water Canal project. Both the phases are set for completion by the end of September this year.
  • Kuwait has reported a 7.5 % pay rise to oil and gas workers given the pressure from local workers in the Oil and Petrochemical Industries Workers Confederation in April's strike. The ministerial committee and the union has agreed to 7.5% annual raise and 5 % to new recruits, and the offering of the option for retirees to choose between healthcare at a Kuwait Oil Company hospital or private health insurance.
  • Egypt's tourism sector is expected to decline by 5 BN USD in 2016 representing around 2% of GDP due to the crash of Egypt Air plan and other terror attacks that recently happened in Egypt.
  • According to Deputy Oil Minister Rokneddin Javadi, Iran has no plans to freeze the level of its oil production and exports, as the country tries to raise its crude exports to pre-sanctions levels. Currently, Iran's crude oil exports, excluding gas condensates, have reached 2 MM barrels per day and Iran's crude oil export capacity will reach 2.2 MM barrels by the middle of summer, according to Javadi.
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