JPMorgan sees more Gulf companies linking up but no liquidity crunch - Reuters

JPMorgan sees more Gulf companies linking up but no liquidity crunch - Reuters:

JPMorgan (JPM.N) expects more consolidation among Gulf companies this year in sectors such as banking, real estate and hospitality, but it sees no liquidity crunch in the region, despite the twin blow of the new coronavirus and low oil prices.

“We are going to continue to see consolidation themes building up on what we have witnessed in the previous years. I expect banking consolidation to continue its way through and to spill over in sectors such as real estate and hospitality,” said Karim Tannir, head of investment banking for the Middle East and North Africa and co-head of MENA at JPMorgan.

The economic downturn in the Middle East is expected to be worse than the 2008/09 financial crisis and the 2014/15 oil price crash, the International Monetary Fund has said.

But Tannir said the region had entered 2020 with strong finances and, after an initial phase of assessing liquidity needs, companies and governments are now looking more strategically at potential opportunities.