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October 16, 2019
GCC Bond issuances witness an uptick in H1 2019
Bond markets in the GCC witnessed a pick-up in debt issuances during the first half of 2019 after a subdued close in the last two quarters of 2018. The rise in oil prices during the first nine months of 2018 boosted the oil revenues for GCC economies, reducing the need to tap the bond markets. Consequently, Sovereign issuances dried up in the second half of 2018. Since the start of 2015 (As of 23rd Sep 2019), the UAE and Saudi...
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September 15, 2019
Do GCC Banks have adequate capital buffers?
The term liquidity is defined as the banks’ ability to fund rising assets and to meet its obligations on time. Therefore, when banks are unable to perform the primary tasks of funding assets and paying its obligations, it faces liquidity risk. Effective liquidity management is important to promote macro-financial stability. In the GCC countries, fixed exchange rate regimes provide reliable nominal anchors, but when combined with open capital accounts, they result in limited independence of monetary policy. At the same...
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August 21, 2019
Foreign investment in GCC equity markets – Will the inflow levels sustain after index inclusions?
GCC countries are in the process of opening their economies to make them more attractive to foreign investors. The inflow of foreign funds through FDI would augur well for diversification of these economies away from oil to reduce their large oil dependence more so because its markets are cyclical and volatile. Attracting investments in non-oil sectors through equity markets is also one of the means to achieve this goal. Foreign equity inflows into GCC capital markets is expected to rise...
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July 30, 2019
Saudi Corporate Capital Spending – An Encouraging Boost to Non-Oil GDP
Capital Investment is a harbinger of future growth as the fruits from today’s investments will appear in the future. Saudi Corporate sector has invested large resources in capital expenditure in 2018 which is much higher than their total net income earned during the year. The Corporate sector as represented by 120 (non-financial) listed Companies included in Tadawul All Share Index (TASI) of Saudi Stock Market, was examined to measure change in Property, Plant & Equipment (PPE), gross of depreciation (Capex)...
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July 4, 2019
GCC Stock Markets – Kuwait continues to be the best performer
According to recently published Monthly Market Review for the June, GCC markets recovered lost ground during the month, as the positive performance of Saudi equities lifted the broader index. Kuwait continued its positive run in 2019, registering gains for the sixth month in succession. Kuwait’s All Share index rose by 1.9% while its Premier market index rose by 2.3% in June. In the first half of 2019, Kuwait emerged as the best performing market with a gain of 19.1%. The...
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June 13, 2019
كيف تسهم الحرب التجارية والعقوبات على النفط الإيراني وخفض دول الأوبك لإنتاجها في صياغة أوضاع أسواق النفط العالمية في العام 2019؟
Average crude oil prices have trended upwards for four consecutive months in 2019. The perception of oil risk due to factors like increasing geopolitical tensions triggered by the drone attack on Saudi oil vessels, the end of waivers for US sanctions on Iranian crude exports, unrest in Venezuela and sustained production cuts from OPEC may have all contributed to these higher oil prices. U.S. Energy Information Administration (EIA) reported that Venezuela’s oil output fell to 830,000 barrels per day (bpd)...
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May 13, 2019
أرامكو السعودية تجمع 12 مليار دولار من طرح السندات: تعزيز الجاذبية الاستثمارية
Saudi Arabian Oil Company (Saudi Aramco) raised USD 12 Billion with the help of its first ever-international bond issuance in the month of April. Aramco marketed a U.S. dollar-denominated debt issue split into five tranches with maturities ranging from three to thirty years. The bond received overwhelming demand from investors, as the company recorded orders of over USD 100 Billion. Demand for the bond was the largest ever recorded for any emerging market bond, surpassing order book value of more...
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May 7, 2019
أسهم الشركات القيادية في السوق الكويتي: أداء قوي للقطاع المصرفي على إيقاع الإصلاحات التنظيمية
Kuwait Blue Chip Companies – Banks Outperform on Regulatory Reforms. Kuwait’s GDP growth returned to positive territory in 2018, with higher input from its non-oil sectors, increased government investment to boost growth and improvement in the oil prices. Reforms to the capital markets and banking sectors attracted further inflows into the economy. The year 2018 has been an eventful one for Kuwait capital markets with the opening up of the banking industry being the latest in a series of measures...
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April 11, 2019
أسواق المال الخليجية – زخم الحضور العالمي القوي!
According to recently published Monthly Market Review for the month of March, performance of GCC equity markets improved with Kuwait being the top performer, followed by Saudi Arabia. Qatar remained flat while Oman and Dubai continued to retract. Globally, China‘s Shanghai index surged sharply, becoming the leading performer for the year as conducive policy environment, easing concerns pertaining to trade war and improving sentiments resulted in increased inflows. Emerging markets continued the strong momentum during the month of March, particularly...
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March 28, 2019
الصكوك السيادية: الموقف الحالي، الفرص والتحديات
This article was originally published in Islamic Finance News Innovation in Islamic finance, large scale capital needs to fund infrastructure investments and slump in traditional revenue streams among oil exporting Islamic countries has spurred sukuk issuance in the recent past. Sovereign sukuk, which arrived in the global arena nearly two decades back, has firmly established its presence and accounts for the majority of sukuk issuance. Growth in Islamic finance underpinned by Sovereign sukuk issuance Islamic finance has continued to prosper...