Escalating social unrest in Tunisia and opposition to fiscal reforms from the powerful UGTT labour union will make it more difficult for President Saied to push through much-needed fiscal reforms and further cements our view that the government will be forced to restructure its debts. Elsewhere, Kuwait’s government resigned (again) but hopes that this will pave the way for passing the long-awaited debt law may be overdone. And finally, Oman’s Sultan Haitham announced a cap to local fuel prices until the end of 2022 to quell rising inflationary pressures, although this may increase concerns about the government’s commitment to fiscal consolidation.
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