GCC

How deep is the impact of COVID-19 on the GCC aviation industry?

Tourism has been one of the focus areas of GCC countries’ diversification agenda and aviation sector in the region has been an attendant beneficiary. Closure of borders and travel restrictions were one of the first measures taken by countries around the world to curtail the spread of COVID-19. These measures had brought the aviation industry to standstill. According to IATA, revenue of airlines in GCC region is expected to decline by 56% in 2020 and while the passenger numbers are...

Has Coronavirus cases peaked in the World and GCC

The outbreak of novel Coronavirus across the globe, which affected lives of millions of people continues to take its toll on the global economies. With more than 7-8 months into the crisis the virus is still omnipresent. It forced countries to adopt control measures like lockdown, curfew, social distancing, masks etc. As a result of which many countries have been successful in curbing the rate of spread and have also moved past the peak in terms of maximum confirmed cases...

Online Education for School Children in the GCC

As children and parents in the GCC get a taste of remote schooling due to the impact of COVID-19, there are multiple themes emerging. It is a given that learner cohorts are very different, which means that felicity with computers vary significantly. Remote learning, especially for young children, is a complex affair due to the influx of technologies,various software, and communication capabilities of stakeholders involved. The GCC education sector’s response to COVID-19 quarantine needs to be judged objectively. It is...

COVID-19 brings to the fore GCC’s Fiscal Vulnerability

Revenue from oil forms significant portion of overall revenue for GCC countries, with 20-year(2000-2019) average at 74%. This dependence on oil as revenue source has long been a pain point for GCC’s fiscal position, surfacing during periods of low oil prices and receding during periods of high oil price.In the backdrop of fall in oil prices due to COVID-19, building a sustainable fiscal policy in GCC has resumed higher importance. Ascend to Prosperity Referred to as black gold, oil has...

COVID-19 may force GCC companies to cut dividend payout

Dividend payments have been an important tool to get investors to buy shares of companies as dividends provide a return on investment even during periods when the markets are down. GCC Companies listed on stock exchanges have provided consistent dividends in recent years. Due to Covid-19, many GCC Companies may be forced to cut dividend payouts due to fall in earnings and need to preserve cash. We examine the impact on dividends due to the pandemic and its ramifications for...

COVID-19: GCC has mostly resorted to monetary measures

The COVID-19 led health and economic crisis has pushed many governments around the world to respond with a wide armor of fiscal and monetary actions that far exceed the measures taken in the past when the Global Financial Crisis happened in 2009. The measures were announced in a quick and concerted manner across the developed countries, emerging countries, and less developed countries. GCC countries also acted with alacrity in providing stimulus measures: to meet the COVID-19 Impact that hit them...

10 million and counting: COVID -19 breaches a grim milestone

As 2020 began with new hopes, little did the world know about an emerging threat coming out of the most populous country on Earth, a virus which spread like a wildfire in no time. The contagious nature of the virus made it more so difficult to contain it. The World Health Organization (WHO) declared the outbreak a Public Health Emergency of International Concern on 30 January 2020, and a pandemic on 11 March. On 28th June 2020, the global confirmed...

Will COVID-19 reduce the appetite for renewable energy projects in the GCC?

The outbreak of COVID-19 has deeply impacted global economies, pushing them into a recession. As health and economic concerns continue to mount, the near-term outlook for renewable energy projects look weak. GCC countries have taken a strong hit in the revenue side of their books due to the sharp fall in oil prices during 2020. The shortfall in revenue and rise in deficits are expected to have a strong near-term impact on project awards in the renewable energy space. GCC...

Impact of Oil Price Volatility on GCC economies, markets and businesses

Closely intertwined with economic growth, oil has been vulnerable to global growth outlook. The recent collapse in oil prices caused by demand destruction on account of COVID -19 was exacerbated by the OPEC+ disagreement, pushing prices down to historically low levels. In the current dynamic scenario, where the world is controlled by COVID-19, while news on OPEC+ agreement, stimulus etc. causes some increase in prices, news on extension of lockdowns and filling up of oil storage causes a steep fall...

GCC Governments should tap the idea of perpetual bonds

Spain proposed an interesting financing mechanism, though not unprecedented, to fund the recovery measures against COVID-19 pandemic impact by issuing bonds without maturity date. The bond, popularly known as ‘perpetual’, has no set date for redemption and the government pays coupon until it decides to buy the bond back. The idea resonated well among many as it could offer and easy and low-cost way to finance the proposed amount of EUR 1 trillion (USD 1.08 trillion). Based on various estimates,...