Middle East & North Africa Economics Update Oman: new Sultan faces big economic challenges The swift appointment of Haitham bin Tariq as the Sultan of Oman, following the death of Sultan Qaabos, has eased fears that the country would enter a prolonged period of political uncertainty. But... 13th January 2020 · 3 mins read
Middle East & North Africa Economics Update US-Iran tensions and the threat to the rest of MENA Fears of a direct conflict between the US and Iran have eased over the past day or so, but the risk has not disappeared and the rest of the MENA region is vulnerable to any retaliation by Tehran... 7th January 2020 · 4 mins read
Middle East & North Africa Economics Update What’s behind the weakness in the Gulf? The Gulf states are likely to have recorded their second weakest pace of aggregate growth since the global financial crisis in 2019 due to oil output cuts and poor performances from non-oil sectors... 7th January 2020 · 3 mins read
Global Economics Update Soleimani’s death and the threat of US-Iran war The assassination of Qassem Soleimani, a major figure in the Iranian regime, in a US airstrike last night has significantly raised the chances of an outright conflict between the US and Iran. We’ve... 3rd January 2020 · 3 mins read
Middle East & North Africa Economics Update Saudi 2020 budget: austerity makes a comeback Saudi Arabia’s 2020 budget makes clear that the authorities are preparing for a prolonged period of low oil prices by introducing fresh fiscal austerity. This, combined with the deeper oil production... 9th December 2019 · 3 mins read
Middle East & North Africa Economics Update Oil output cuts likely to drag on Saudi recovery The OPEC+ oil quota cuts announced today are unlikely to have a significant economic impact on most Gulf economies, but they will on Saudi Arabia. The direct impact of the output cuts means GDP growth... 6th December 2019 · 2 mins read
Middle East & North Africa Economics Update Lebanon: how do things play out from here? The political situation in Lebanon shows little sign of improving and the risk of a disorderly devaluation, sovereign default and banking crisis are rising by the day. Our sense is that the... 4th December 2019 · 5 mins read
Middle East & North Africa Economics Update Saudi economic downturn deepened in Q3 Our GDP Tracker suggests that Saudi Arabia’s economy contracted by around 0.5% y/y in Q3 as a greater drag from oil production cuts (as well as the temporary disruption from the attacks on oil... 27th November 2019 · 2 mins read
Middle East & North Africa Economics Update Lebanon and devaluation: a bitter medicine? Pressure is growing on Lebanon’s dollar peg and, in the event of a devaluation, the pound could fall by as much as 50% against the dollar. A messy sovereign default and a deep recession would follow... 19th November 2019 · 4 mins read
Middle East & North Africa Economics Update Egypt’s easing cycle has further to run The 100bp interest rate cut delivered by Egypt’s central bank today is likely to be followed by further easing in the coming months. While we expect inflation to edge up in the near term, it will... 14th November 2019 · 3 mins read
Middle East & North Africa Economics Update Qatar’s banking risks re-emerging The boom in credit in Qatar since the turn of the year has caused a renewed build-up of vulnerabilities in the banking sector. Severe balance sheets strains should be avoided, but the recent pace of... 13th November 2019 · 4 mins read
Middle East & North Africa Economics Update Egypt: inflation to stay weak, more rate cuts on the way The decline in Egyptian inflation to a 14-year low of 3.1% y/y in October raises the risk that the central bank lowers interest rates by more than the 100bp that we have pencilled in for Thursday’s... 11th November 2019 · 3 mins read
Middle East & North Africa Economics Update How credible are the region’s dollar pegs? Many of the non-oil producing countries in the region have tended to support their dollar pegs by maintaining a level of FX reserves sufficient to cover the monetary base. In Egypt and Jordan... 7th November 2019 · 3 mins read
Middle East & North Africa Economics Update The economic implications of the Aramco IPO The upcoming sale of a stake in Saudi Aramco would probably make the government less inclined to implement fresh austerity. The long-term impact on the Saudi economy will depend on whether this leads... 4th November 2019 · 4 mins read
Middle East & North Africa Economics Update Saudi economic downturn deepens Our Tracker suggests that the impact of oil production cuts caused the Saudi economy to contract in Q3. And output probably fell at a steeper pace in Q4. 28th October 2019 · 2 mins read
Middle East & North Africa Economics Update Lebanon quickly approaching a crunch point The protests in Lebanon (and policymakers’ response) underline that pushing through the austerity needed to stabilise the public finances is politically impossible. With large debt repayments due over... 21st October 2019 · 4 mins read