GCC

GCC Fixed Income: Ratings outlook of Saudi Arabia and Bahrain upgraded to stable

Saudi Arabia and Bahrain saw outlook upgrades in November. Moody’s has revised Saudi Arabia’s outlook from negative to stable on expectation that country would reverse most of its 2020 debt increase while maintaining fiscal buffers. S&P has revised Bahrain's outlook to stable from negative, citing the fiscal reforms undertaken to strengthen its economy. Higher oil prices and support from other GCC members are also expected to help the country improve its fiscal position. The countries had also issued bonds during...

GCC Fixed Income: UAE issues debt for the first time at federal level

UAE federal government has raised USD 4 billion in its debt capital market debut with orders over USD 22.5 billion, an oversubscription of 5.6x. This is the first time that UAE raises funds at a federal level. The bonds were issued in three tranches with 10, 20 and 40 year tenors. It plans to issue more dollar-denominated bonds in 2022 and would also be exploring green bonds and local currency debt. Another issuance is that of Saudi Arabia. The country...

GCC markets gain in October on rise in oil prices and strong earnings

GCC markets were positive for the month of October strengthened by strong earnings and sustained increase in oil prices. S&P GCC composite index rose by 2.3%, with Kuwait, Qatar and Abu Dhabi leading the gainers. Saudi Arabia’s main index rose 1.8% in October and had reached 15-year highs during the month. Dubai gained the least among GCC markets at 0.7%. GCC Market Performance Source: Refinitiv Among the GCC blue chip companies, the best performer was Al Rajhi Bank (Saudi Arabia),...

Kuwait leads GCC markets in October

Kuwait was the best performing GCC market in October, supported by the rise in oil prices. The Boursa Kuwait All Share index registered gains for the eighth consecutive month, gaining 3.5% for the month and extended its yearly gains to 28.2%. Kuwait government had lifted precautionary restriction measures for COVID-19 from Oct 24, with certain conditions. Kuwait Market Performance Source: Refinitiv Among sectors, the Consumer Discretionary was the top gainer, rising 13.1% followed by Financial Services at 9.1%. Utilities sector...

What’s behind Kuwait’s increasing fiscal breakeven oil price?

For long, Kuwait’s fiscal breakeven oil price remained low and it had been a key strength for the economy. However, the situation is fast changing. Fiscal breakeven oil price can be defined simply as the oil price that balances an oil‐exporting country’s fiscal budget. Upon comparing a country’s fiscal breakeven oil price with the international oil price, one can gauge the fiscal health of the country. Lower fiscal breakeven oil price than the market price would lead to surplus and...

Oil revenues & private sector growth to speed up GCC economic recovery in 2022

As the world charts its recovery from COVID-19’s impact, businesses and trade around the world begin to hit normalcy, reviving the global demand for oil and consequently the global oil prices. As of August’21, price of IPE Brent is up nearly 41% year to date. OPEC+ is firm on its stance of cutting oil production until mid-2022, this is set to support global oil prices and provide renewed vigour for GCC economies. According to Institute of International Finance (IIF), the...

GCC Stock Markets – Positive earnings growth strengthen business optimism

According to our recently released Monthly Market Review for the month of August, GCC equity market gained by 3.6%. At country level, all GCC markets except Oman registered gains for the month. Globally, equities continued their bullish rally as indicated by the MSCI World Index which gained by 2.3%, extending YTD gains of 16.8%. MSCI EM Index gained towards the month-end recuperating from its mid-month weakness. U.S and U.K were also positive for the month. GCC Markets: Most markets end...

MSCI Emerging Markets Index – How is the GCC placed?

With a total market capitalization of USD 8.3 trillion, the MSCI Emerging Markets (EM) Index has emerged as one of the most important global indices tracked by many ETFs and mutual funds. Inclusion in the index has become sought after not only due to the potential inflows from overseas funds, but also the credibility it gives to the included country’s capital markets. Weightage of GCC nations in the MSCI EM index is quite low Among the GCC, companies from UAE...

Economic recovery post COVID-19: How they stack up for GCC economies?

GCC economies were hit hard by the pandemic last year with the cumulative GDP of the region falling by 5% in 2020 over that of 2019. However, the IMF estimates all the GCC economies to show positive growth in 2021 with Saudi Arabia expected to grow 2.9%, UAE by 3.1%, Qatar by 2.4%, Kuwait by 0.7%, Oman GDP Growth in % from 2020-2022 Source: IMF 2021 MECA Regional Outlook Macro indicators have improved in the GCC The improved projections are...

Fresh listings could reinvigorate Islamic equity capital markets

This article was originally published in Islamic Finance news (IFN) GCC regional equity markets continue to scale new peaks buoyed by global rally and increasing oil prices. S&P GCC Composite Index, an index, has gained over 20% for the year. Liquidity glut sloshing around global markets has fuelled the rally. Following the COVID-19 pandemic, central banks worldwide eased money supply and increased the availability of credit at near zero interest rates to stem economic fallout. However, the capital has found...