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- Saudi Arabia and UAE have agreed to extend the maturity of USD 4bn worth of deposits made with Egypt’s central bank and which were due to mature in 2018, disclosed the central bank governor. The duration was not stated.
- An IMF delegation is expected in Egypt this week, to review the country’s progress on economic reforms before it disburses the third instalment of a USD 12bn loan programme.
- Egypt’s finance minister expects to renew a financing agreement for a year with a consortium of global banks. The original USD 2bn repurchase agreement was signed in Nov 2016, and had a one-year maturity. The banks provided funds against international bonds issued by the finance ministry and listed on the Irish stock exchange.
- Trade deficit in Egypt narrowed by 14.7% to USD 3.5bn in Jul this year; value of imports decreased by 5.4% to USD 5.42 while exports were lower by 17.9% to USD 1.92bn.
- Egypt’s agricultural exports grew by 13.9% during Jan-Sep this year to 4.1mn tonnes versus 3.6mn last year.
- Tourism revenues in Egypt grew by 211.8% yoy to USD 5.3bn in Jan-Sep this year, with number of tourists increasing by 55.3% to 5.9mn and tourists average spending rising to USD 88.2 per night.
- Jordan’s real GDP is expected to grow by 2.3% in 2017, according to the World Bank, a tepid increase of 0.3 percentage points over the 2016 rate. Services are expected to remain a key driver of growth, boosted by a robust tourism sector.
- Kuwait announced a budget deficit of KWD 1.94bn in H1 of the fiscal year 2017-18, just 25% of the total planned deficit for the full year (KWD 7.9bn). Total revenue touched KWD 7.03bn during the period, with KWD 228.07mn collected in taxes and charges while total expenditure was KWD 6.75bn.
- Lebanon approved the first state budget in 12 years last week, passed after three long days of discussion by 61 votes for and four against (8 abstained).
- The Board of Directors of Oman Capital Markets Authority decided to convert Muscat Securities Market to a company fully owned by the State General Reserve Fund. The MSM will be listed and the IPO will take place in the near future.
- Qatar’s consumer price deflation deepened in Sep: prices fell by 0.5% yoy, after a 0.4% drop in Aug. Housing and utility prices slipped by 4.7% yoy and by 0.7% mom.
- Qatar expects 1.5mn persons to visit during the 2022 World Cup, according to a senior official of the Supreme Committee of Delivery & Legacy; this number is almost three times more than in Brazil (600k) and South Africa (500k).
- Updates on the Aramco IPO: according to Saudi Arabia’s oil minister, the Aramco IPO “is on track” – both international and domestic portions – and will be rolled out in 2018. Sources say that Chinese state-owned oil companies like PetroChina and Sinopec have expressed interest in a direct deal – buying up to 5%. It was also reported by Reuters that Aramco has asked FTI Consulting to suspend its investor relations advisory work related to the IPO.
- In Saudi Arabia, VAT will not be applicable on housing rents or governmental services, according to the official VAT Twitter handle.
- Saudi Arabia’s governor stated that the central bank may raise the maximum loan-to-deposit ratio for commercial banks if that is needed to help the economy. The central bank had last raised the ratio in Feb 2016, to 90% from 85%. Separately, he also revealed that two regional banks and one Asian bank were in advanced stages of procedures to obtain Saudi banking licences.
- Saudi Arabia’s Public Investment Fund (PIF) has launched a real estate refinance company, in partnership with the Ministry of Housing: the company is expected to refinance up to SAR 75bn (USD 20bn) for the housing sector over the next five years, reaching SAR 170bn by 2026.
- Saudi Arabia has launched specialised commercial courts in three main cities – Riyadh, Dammam and Jeddah – last month, according to its justice minister. This move is expected to expedite the resolution of commercial disputes and encourage investments into the country.
- Saudi Arabia approved a new law regulating trade in petroleum products and also stated that oil-based feedstock for industry can only be used at international prices.
- The average monthly wage of a Saudi national working in the private sector is estimated at SAR 7,717 (USD 2,057) versus a take-home pay of SAR 3855 for non-Saudis, according to data for Q2 this year. In the government sector, however, expats were paid an average SAR 11,138 vis-a-vis SAR 10589 for Saudi nationals.
- Saudi Aramco, as part of its diversification efforts, plans to set up a construction company with local and international partners to build non-oil infrastructure in Saudi Arabia. PIF is expected to be part of this newly created company.
- Saudi Capital Market Authority has created a new Listed Companies and Capital Market Institutions Auditors Supervision Division to supervise audits of listed companies.
- Results of the Nielsen Global Survey of Consumer Confidence and Spending Intentions showed that confidence in Saudi Arabia rose by 4 points to 98 in Q2 this year. About 45% of the respondents were confident about job prospects in the coming year, up 3% while 56% were optimistic about their personal finance. The economy (25%), parents’ welfare / happiness (18%), terrorism (18%) and increasing food prices (12%) topped the list of concerns cited by respondents.
- Saudi Arabia witnessed a 27% yoy growth in online transactions to USD 8.3bn last year. Saudi Arabia was the fastest growing country in the airlines and travel sectors, showing 21% yoy growth in airline payment volume and 36% growth in travel and tourism.
- Middle Eastern inbound M&A grew by 220% yoy to reach an all-time high of USD 7.3bn in Jan-Sep this year, according to Reuters. But, investment banking fees during this period was down by 4% to an estimated USD 669.2mn.
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