The drop in the Saudi central bank’s foreign assets to a 14-year low in July caused some concern this week, but we suspect this reflects funds being recycled to the Public Investment Fund rather than moves to protect the dollar peg. Meanwhile, the government increased funding for state-backed mortgage providers to reinvigorate the market which is grinding to a halt on the back of tighter monetary conditions. Elsewhere, Egypt’s new plan to provide tax exemptions for new industry projects adds to hopes of raising foreign direct investment into the economy. But it may also reignite fears about the commitment to tight fiscal policy and sovereign default.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services