Saudi Arabia warned financial assets may be drained within five years | The National:
"The IMF has warned that regional economies could burn through their financial buffers within five years as they face a $700 billion deficit.
The fund lowered its projection for Gulf growth to 3.3 per cent this year, down from a 3.4 per cent projection in May, as lower oil prices batter the region.
It expects regional growth to slow further next year to about 2.8 per cent."
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Wednesday, 21 October 2015
Slip in profit for Mashreq suggests bull run for UAE banks ending | The National
Slip in profit for Mashreq suggests bull run for UAE banks ending | The National:
"Mashreq, the Dubai-based lender led by Abdul Aziz Al Ghurair, said its third-quarter profit fell 7.6 per cent as it earned less from fees and commissions.
The decline comes amid increasing signs that the bull run banks have enjoyed in recent years is starting to wane amid lower oil prices.
Sharjah-based United Arab Bank said last week that it had booked a loss after recording a rise in bad loans from some of its commercial customers."
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"Mashreq, the Dubai-based lender led by Abdul Aziz Al Ghurair, said its third-quarter profit fell 7.6 per cent as it earned less from fees and commissions.
The decline comes amid increasing signs that the bull run banks have enjoyed in recent years is starting to wane amid lower oil prices.
Sharjah-based United Arab Bank said last week that it had booked a loss after recording a rise in bad loans from some of its commercial customers."
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Unemployment seen surging across the region | GulfNews.com
Unemployment seen surging across the region | GulfNews.com:
"Unemployment across the oil exporting countries in the region including the GCC is expected surge as governments are poised to cut spending to cope with rising fiscal deficits, according to the IMF’s regional economic outlook.
In the GCC, excluding the UAE, more than 2 million nationals are expected to join the workforce by 2020. If private sector job growth were to follow past trends, and public sector employment growth is consistent with the current fiscal projections, more than half a million job market entrants will end up being unemployed, in addition to the 1 million who are already out of work.
“The aggregate GCC unemployment rate would increase from 12 per cent to 16 per cent. Clearly, if more fiscal adjustment were to take place, with some of it in the form of reined-in public sector hiring, unemployment rates would be even higher,” said Masoud Ahmad, the IMF’s regional director for Middle East and Central Asia."
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"Unemployment across the oil exporting countries in the region including the GCC is expected surge as governments are poised to cut spending to cope with rising fiscal deficits, according to the IMF’s regional economic outlook.
In the GCC, excluding the UAE, more than 2 million nationals are expected to join the workforce by 2020. If private sector job growth were to follow past trends, and public sector employment growth is consistent with the current fiscal projections, more than half a million job market entrants will end up being unemployed, in addition to the 1 million who are already out of work.
“The aggregate GCC unemployment rate would increase from 12 per cent to 16 per cent. Clearly, if more fiscal adjustment were to take place, with some of it in the form of reined-in public sector hiring, unemployment rates would be even higher,” said Masoud Ahmad, the IMF’s regional director for Middle East and Central Asia."
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Are Oil Prices on the Verge of Another Major Selloff? - Bloomberg Business
Are Oil Prices on the Verge of Another Major Selloff? - Bloomberg Business:
"Ed Morse, Citigroup's global head of commodities research, discusses the outlook for oil prices with Bloomberg's Scarlet Fu, Alix Steel and Joe Weisenthal on "What'd You Miss?""
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"Ed Morse, Citigroup's global head of commodities research, discusses the outlook for oil prices with Bloomberg's Scarlet Fu, Alix Steel and Joe Weisenthal on "What'd You Miss?""
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Saudi Assets at Risk as Spending Outpaces Oil Revenue - Bloomberg Business
Saudi Assets at Risk as Spending Outpaces Oil Revenue - Bloomberg Business:
"Masood Ahmed, IMF director of Middle East and Central Asia, discusses the risk of Saudi Arabia draining its financial assets within the next five years due to low oil prices. He speaks on "Bloomberg Surveillance." "
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"Masood Ahmed, IMF director of Middle East and Central Asia, discusses the risk of Saudi Arabia draining its financial assets within the next five years due to low oil prices. He speaks on "Bloomberg Surveillance." "
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MIDEAST STOCKS-Saudi index drops on prospect of fiscal reform | Reuters
MIDEAST STOCKS-Saudi index drops on prospect of fiscal reform | Reuters:
"Saudi Arabia's share index
made its largest decline in two months on Wednesday after an
International Monetary Fund (IMF) official said the kingdom was
considering a wide range of fiscal reforms in response to a
record budget deficit.
Other Gulf markets also fell, with renewed weakness in oil
prices and mixed company results sapping investor confidence.
Fiscal reforms in Saudi Arabia, which could include lower
energy subsidies, could hurt corporate profits in some sectors,
especially the petrochemical industry.
Saudi Basic Industries Corp (SABIC), the Gulf's
largest listed company, fell 3.7 percent as 19 of Saudi's 20
biggest stocks declined. "
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"Saudi Arabia's share index
made its largest decline in two months on Wednesday after an
International Monetary Fund (IMF) official said the kingdom was
considering a wide range of fiscal reforms in response to a
record budget deficit.
Other Gulf markets also fell, with renewed weakness in oil
prices and mixed company results sapping investor confidence.
Fiscal reforms in Saudi Arabia, which could include lower
energy subsidies, could hurt corporate profits in some sectors,
especially the petrochemical industry.
Saudi Basic Industries Corp (SABIC), the Gulf's
largest listed company, fell 3.7 percent as 19 of Saudi's 20
biggest stocks declined. "
'via Blog this'
IMF warns on Gulf states growth amid oil price fall and conflict - FT.com
IMF warns on Gulf states growth amid oil price fall and conflict - FT.com:
"Gulf states face slower economic growth as a “large and persistent” drop in oil prices increases the urgency for them to cut spending and diversify revenues, according to the International Monetary Fund.
In its latest regional economic outlook for the Middle East, north Africa and Central Asia, published on Wednesday, the IMF forecast that the six-member Gulf Co-operation Council will see gross domestic product growth slow from 3.25 per cent this year to 2.75 per cent next year.
Council members’ average fiscal deficits are expected to reach 13 per cent of GDP this year, with the region’s largest economy, Saudi Arabia, facing a deficit of 21.6 per cent in 2015 and 19.4 per cent in 2016."
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"Gulf states face slower economic growth as a “large and persistent” drop in oil prices increases the urgency for them to cut spending and diversify revenues, according to the International Monetary Fund.
In its latest regional economic outlook for the Middle East, north Africa and Central Asia, published on Wednesday, the IMF forecast that the six-member Gulf Co-operation Council will see gross domestic product growth slow from 3.25 per cent this year to 2.75 per cent next year.
Council members’ average fiscal deficits are expected to reach 13 per cent of GDP this year, with the region’s largest economy, Saudi Arabia, facing a deficit of 21.6 per cent in 2015 and 19.4 per cent in 2016."
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MIDEAST STOCKS-Dubai hits two-week low, other Gulf markets slip | Reuters
MIDEAST STOCKS-Dubai hits two-week low, other Gulf markets slip | Reuters:
"Dubai's stock index slumped to a two-week low in early Wednesday trade as the prolonged drop in oil prices weighs on prices across the market.
Bourse bellwether Emaar Properties fell 1.9 percent, rival developer Deyaar slipped 1.1 percent, and Dubai Financial Market dropped 1.7 percent.
Two small-cap stocks, Gulf Navigation and Amanat Holding, accounted for nearly a third of the 33.3 million shares traded on the index as of 0710 GMT. The former was up 0.2 percent and the latter down 1.1 percent."
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"Dubai's stock index slumped to a two-week low in early Wednesday trade as the prolonged drop in oil prices weighs on prices across the market.
Bourse bellwether Emaar Properties fell 1.9 percent, rival developer Deyaar slipped 1.1 percent, and Dubai Financial Market dropped 1.7 percent.
Two small-cap stocks, Gulf Navigation and Amanat Holding, accounted for nearly a third of the 33.3 million shares traded on the index as of 0710 GMT. The former was up 0.2 percent and the latter down 1.1 percent."
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