This report is designed to give you a snapshot about the MENA region tackling multiple issues:
51.12 USD 1,236 USD
Fuel Prices are expected to rise by 4-5% in Jordanian domestic market in June. This forecast is based on the recovery in the price of Brent crude oil, which is a global benchmark, by approximately 14% in May. The increase in international price of oil is expected to influence the domestic market.
Egyptian government has signed 100 MM USD with Kuwait Fund for Arab Economic Development. The fund is assigned to finance the construction of five water desalination in South Sinai.
Jumia, the African online retailer has reported that Smartphone sales has been increased by 474% between 2014-2015. Moreover, the electronics category, especially smartphones are the most visited category online.
Egypt's central bank has kept the Egyptian pound fixed at an 8.78 USD disregarding of its devaluation in March 2016. The bank announced a policy of more flexible exchange rate but with a promise to keep the currency strong.
Jordan's unemployment rate reached 14.6% in Q1 2016. The rate is calculated as the highest in eight years which is assumed to be a challenge and a major concern for the new government.
The Ministry of Energy in Abu Dhabi increased fuel prices by around 4.5% in June due to recovery in global oil prices, rise in demand, and variety of supply especially from Nigeria. The new pricing policy was based on average monthly global diesel and petrol prices plus operating costs and profit margins of distributing companies.
In efforts to address a budget deficit, Oman's parliament voted to sharply raise taxes on three industries: petrochemical industry, and non-oil natural resources from 12 to 35%, and liquefied natural gas companies from 15 to 55%.
Due to Ramadan Umrah season, the expansions in Makah, and school holidays, the Saudi exchange market activities is expected to increase by 15%. The demand on foreign currencies is currently higher by 40% than the demand on the riyal. This is mainly due to the increase in the number of Saudis travelling abroad for holidays.
The increase in fuel prices is pushing up transportation costs and inflation in Oman. Moreover, the consumer price index's transport component has jumped 5.56% in the first four months of 2016 after subsidies on petrol and diesel were removed.
Lebanon has increased the amount of public debt held in dollars by swapping local currency debt into 2 BN USD worth of Eurobonds; making 59% of Lebanon's public debt held in Lebanese lira and 41% held in US dollars, which will help reduce the average cost of interest on the exchanged bonds and will lengthen the average maturity.
Qatar's banking sector is facing liquidity pressure due to the rapid credit growth and the decline in deposits, especially public sector deposits. In efforts to address the liquidity pressure, the central bank might cut the repo rate or reduce reserves requirements.
According to the United Nations refugee agency, 3,700 people escaped Falluja of Iraq over army's attacks on the Islamic State there. Refugees reported that the Islamic state used the citizens as human shields.
The French naval vessel was sent to the Eastern Mediterranean on search for black boxes of the crashed EgyptAir plane. Three specialist probes were equipped in the Vessel as an attempt to speed up the search.
The Lebanese army killed an Islamic State militant and arrested three who were accused of participating in the killing of Lebanese soldiers and of wounding an officer in the Interior Ministry's intelligence branch.
Saudi Arabia has destroyed a ballistic missile fired from Yemen as well as the platform from which the missile was fired. The missile was destroyed in the air and no injuries were recorded.
.TASI petrochemical sector increased slightly led by SABIC. On the other hand, banking sector declined led by National Commercial Bank (NCB).
.KWSE real estate sector declined led by Injazzat Real Estate Development and Ajwan Gulf Real Estate, while industrial sector declined led by Gulf Glass Manufacturing. On the other hand, telecommunication sector increased slightly led by Ooredoo.
.QSI real estate sector declined led by Ezdan Holding Group, and banking sector led by Qatar First Bank (QFB).
Weekly % Change
Construction & Materials
Banks & Financial Services
Telecommunication & Information
Banking & Financial Services
UAE, Abu Dhabi
Real Estate & Construction
Investments & Financial Services
Note: Weekly values are calculated on Thursday of each week.
Orascom construction has posted a 23 MM USD net profit in Q1 2016 compared to 5.8 MM USD last year. On the other hand, Orascom has signed new contracts worth 510 MM USD in Algeria, Egypt and the US in Q1 2016.
The Bahraini Financial Group GFH arranges an issuance of sukuk worth 150 MM USD which would be dedicated to debt repayment. Future surplus cash will be used for future investment.
Investcorp has recorded its seventh exit in Europe in the past year. GL Education is agreed to be sold to Levine Leichtman Capital Partners (LLCP), private equity firm.
Turkey's Limak Group and Kharafi Nationals, its local agent, signed a contract with Kuwait to finance the establishment of a new airport terminal. The construction would cost 4.34 BN USD.
In Saudi Arabia, "Marafiq", the power and water utility company for Jubail and Yanbu, has signed a big loan agreement worth 1.56 BN SAR with the Saudi Industrial Development Fund "SIDF". It aims at developing and implementing a number of on-going Marafiq projects in the Jubail and Yanbu industrial cities.
In Qatar, QNB had closed syndication of a 3-year 2.25 BN EUR senior unsecured Euro term loan facility. The loan was increased from 1.5-2.25 BN EUR due to strong market over-subscription by the 14 participating banks.
Saudi Binladin Group plans to sell some of its assets in order to pay workers who gathered in Jeddah this week to protest the non-payment of salaries and end-of-service dues that would allow them to travel home before Ramadan.
Egypt and Lebanon are to launch an offshore firm with a capital of 200 K USD to increase Egyptian exports to Africa. Egypt aims to make use of the Lebanese expertise in promoting and dealing with African markets to boost the volume of Egyptian exports there.