GCC

SME Startup Stories in GCC – What can we learn?

These success stories highlight the value SMEs deliver to GCC economic imperatives. Even a cursory glance at the case studies reveal that these companies have shown remarkable prowess in identifying ideas that speak to customer pain points and have turned them into practical companies through actionable business models. Another notable characteristic is that, in keeping with trends in the rest of the world, these companies have harnessed digital business platforms to drive their revenues, growth and scalability. Coinciding with the...

GCC corporate earnings awaits a turnaround in 2017

Effect of lower oil prices and their impact on non-oil sectors was evident in the earnings performance of H2, 2016. Key sectors such as banking, telecom, real estate and construction all witnessed a fall in earnings. Banking and Telecom sector’s earnings declined by 7% and 29% during H2 2016 on a YoY basis. Poor performance of the former was due to tight credit and weak economic conditions, while the latter suffered from subdued performance of foreign subsidiaries, increased regulatory costs...

[Gulf Business] Alternative financing options for the GCC

The article originally appeared in Gulf Business. Traditional financing options, such as bank funding, continue to rule the roost in the Gulf region. Rising oil exports led to large government revenues, which usually ended up as deposits in the region’s banking system and constituted a significant source of low-cost funds. However, the current lower oil price environment and the resulting budgetary deficits have forced market participants to look at alternative sources of funding, such as private equity, venture capital, peer-to-peer...

Sharia Gold Standard – A new Opportunity?

Strict norms have hindered the development of gold related investable products in the Islamic finance world and restricted the investment only in the form of bullion and jewelry. A few gold related Islamic investment products which supported investors to buy and sell precious metals in a bulk form at competitive rates while, managing the supply chain to ensure secure vaulting existed prior to the introduction of the Gold Standard. However, lack of understanding and harmony of Sharia law with regards...

Kuwait Price Index up by 19% in Jan 2017

According to Marmore’s recently released Monthly Market Review, MENA bourses had a positive start to the year 2017, with nearly all markets ending the first month in green. Kuwaiti Price and Weighted indices led the charge, rising by 18.9% and 12.4%, respectively, followed by Bahrain (6.8%). Saudi Arabia and Oman were the only markets to register a fall in January, falling by 1.5% and 0.1%, respectively. Various reasons are being touted for the 14-day consecutive rally in the Kuwait bourses,...

Neutral outlook for GCC stock markets

According to Kuwait Financial Centre “Markaz” report on GCC stock & debt market outlook 2017, Boursa Kuwait has started this year on an explosive note. The much followed price index gained 16% while the weighted index gained by 11% as compared to 1.4% for MSCI GCC index and a negative 2.7% for Saudi Arabia. This has been among one of the sharpest rallies for Kuwait main index in recent years as the index posted positive gains for the fourteenth consecutive...

MENA Markets end 2016 on a positive note

According to Marmore’s recently released Monthly Market Review, MENA bourses had a positive month in December, with all markets ending the year in green. Morocco’s Casablanca Index led the charge rising 9.1 per cent, followed by Egypt’s HRMS index (7.2 per cent). Kuwait weighted and price indices had a positive month, with both climbing 3.5 per cent, amid a spurt in speculative trading ahead of the year-end. The Egyptian Index also registered the highest gains in the year, closing nearly...

Are GCC businesses leveraging social media enough?

This increasing reach, twinned with the growing presence of young people on social media, has opened up new avenues for companies to interact with their customers of the industries that are currently active on social channels across the region, the retail industry leads engagement on Facebook in almost all of the GCC countries, with over seven million active followers. This is followed by the telecommunications industry at close to five million users. While the remaining top five industries in the...

GCC Corporate Earnings fall by 8% in First half of 2016. Expected to fall by 4% in 2016

Total earnings in 1H16 came in at USD 32.8 billion, partly supported by telecom and financial services sector. Among sectors, telecommunications and financial services posted positive earnings growth, as contribution from international markets and favorable exchange movements supported their bottom line. Earnings in banking sector remained flat while earnings in commodities, real estate and construction related sectors contracted as the fall in oil prices is increasingly felt across non-oil sectors. Blue chips fared relatively better, while earnings of mid-cap and...

Bankers can finally look forward to merger activity

The article originally appeared in The National | Business The fee-based investment banking business has four key components – syndicated loans, equity capital markets, debt capital markets and mergers and acquisitions (M&A). While in other markets we can witness activity across these four components, in the GCC investment banking advisers depend on syndicated loans for their survival – 50 per cent of total investment banking fees on average. Equities is dull thanks to poor performing capital markets and the related dull...