GCC Market

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...

A dab of good food and a dollop of technology!

Customers are increasingly expecting certain advantages when they shop, travel and handle their finances such as digital access, personalization, loyalty tracking and no touch transactions. In a relatively new trend, customers have similar expectations when they dine as well. Restaurant tech is defined as set of innovative technologies that improve the restaurant business and the experience for customers. AI, blockchain, drone delivery, and robotics are expected to play a larger role in the food industry. With a 77% smart phone...

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...

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...

Kuwait Retail Sector Positioned for Significant Growth

Kuwait’s retail sector is small in absolute terms when compared to regional peers like the UAE or Saudi Arabia. However, Kuwait has one of the highest concentrations of international retailers in the GCC, with the luxury segment proving to be a major draw. The value of Kuwait’s retail market was KD 3.5bn or 9.1% of non-oil GDP, as of February 2018 (Oxford Business Group). These figures are expected to grow even further as consumers have shown an increased preference for...

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...

Automation in SMEs

Rise in automation is changing the ways of doing business. Similar to the digital and technological revolution, big business houses have been the first to adopt automation across their activities in the form of driverless cars, robot assistants, and delivery drones etc. For example, the Dubai Metro is already driverless, and the UAE is pioneering the Dubai Autonomous Transportation Strategy aiming to make 25 per cent of all trips autonomous by 2030. With progress in automation, the costs of sensors...

Kuwait Blue Chip Companies – Banks Outperform on Regulatory Reforms

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...

GCC Stock Markets – Riding on global euphoria!

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...

Sovereign Sukuk: Current Status, Opportunities & Challenges

This article was originally published in Islamic Finance News Innovation in Islamic finance, large-scale capital needs to fund infrastructure investments, and a 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 and...