Home > Insights > Fitch Ratings has expressed its concern over Saudi’s financial position after the country’s move to raise a 10 BN USD loan through international banks which reflects pressure on its fiscal balance caused by low oil prices.
Monday, 25 Apr 2016

Fitch Ratings has expressed its concern over Saudi’s financial position after the country’s move to raise a 10 BN USD loan through international banks which reflects pressure on its fiscal balance caused by low oil prices.


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Economic Outlook

Economic Outlook

  • Fitch Ratings has expressed its concern over Saudi's financial position after the country's move to raise a 10 BN USD loan through international banks which reflects pressure on its fiscal balance caused by low oil prices.
  • Abu Dhabi Statistics center has posted a 2.8 % fall in Abu Dhabi's March inflation rate (year-on-year) mainly affected by the fall in transportation prices which declined by 3.1% after the UAE cut the domestic gasoline prices.
  • According to the United Arab Emirates state agency, WAM, the UAE has allocated 4 BN USD to Egypt where half of it will be given in the form of investments and the rest as central bank deposits to support cash reserves. On the other hand, Saudi Arabia signed a contract for 16 BN USD as an investment fund.
  • Iraq's central bank governor has announced that the country is planning to borrow around 16 BN USD over the next two years from the IMF, World Bank and members of the Group of Seven leading industrialized nations. Moreover, there are other plans to issue 2 BN USD in bonds during the next three months.
  • Oman's government will issue international bonds for the first time in 20 years. It is worth mentioning that the sultanate's government has chosen five banks to arrange the issuance of the bonds.
  • Iran's deputy oil minister has announced that the country's oil production is expected to reach pre-sanctions levels within the next 2 months.
  • Oman's power sector regulator has reported that the country is on its way for the introduction of solar rooftop generation in the Sultanate, adding that the renewable energy option will not be limited to residential homes alone, but also will be available to industrial and commercial buildings as well.
  • Kuwait oil and gas workers have ended their 3-days strike that has caused a temporary fall in Kuwait's oil production by almost half, as reported by the trade union.
  • The Lebanese Republic has launched a 1 BN USD dual tranche bond which is split between 700 MM USD 2024 tranche paying a yield of 6.65% and a 300 MM USD 2031 tranche yielding 7%.
Political Events

Political Events

  • As part of the Palestinian National Authority (PNA) strategy to reduce coordination with Israel, the authority is planning to use Jordanian or US currencies in the Palestinian commerce and daily transactions instead of the Israeli shekel.
  • Saudi Arabia's King Salman has replaced the minister for water and electricity, Abdullah AL Hussein, with the agricultural minister, Abdurrahman Alfadihli.
  • After more than 1 year of conflict and 6,200 people killed, talks have started in Kuwait aiming to end Yemen's civil war, with Kuwait's foreign minister appealing to both sides to "turn war into peace".
  • U.S President Barack Obama has met Saudi's King Salman to seek joint action on security threats which includes Iran and the Islamic state.
Stock Market

Stock Market

    • .EGX30 banking sector increased led by Commercial International Bank (CIB) and Crédit Agricole.
    • .TASI witnessed a significant increase in petrochemical sector led by National Petrochemical Co. On the other hand, banking sector declined led by Al Rajhi Bank and National Commercial Bank (NCB).
    • .KWSE real estate sector increased led by Al Dar National.
    • .QSI banking sector has increased slightly led by Doha bank and Qatar National Bank (QNB).
 
    Index Watchlist
    Weekly % Change
    YTD% Change
    Egypt
    .EGX30
    4.3%
    11.1%
    Construction & Materials
    3.8%
    -13.3%
    Telecommunication
    4.1%
    35.8%
    Banking
    6.1%
    9.3%
    KSA
    .TASI
    1.2%
    -4.7%
    Petrochemicals
    3.1%
    1.6%
    Banks & Financial Services
    0.8%
    -4.2%
    Telecommunication & Information
    -2.8%
    -4.3%
    Kuwait
    .KWSE
    0.9%
    -4.8%
    Banking
    -0.2%
    -8.2%
    Telecommunication
    0.4%
    3.4%
    Financial Services
    0.2%
    -0.6%
    Real Estate
    1.0%
    -9.5%
    Industrials
    2.8%
    -4.8%
    Qatar
    .QSI
    1.5%
    -0.3%
    Banking & Financial Services
    0.4%
    -1.7%
    Industrials
    1.3%
    0.7%
    Real Estate
    5.2%
    15.0%
    Telecommunication
    -0.1%
    18.5%
    UAE, Abu Dhabi
    .ADI
    2.2%
    7.6%
    Banking
    2.9%
    1.9%
    Telecommunication
    1.9%
    18.6%
    Real Estate
    -0.2%
    22.1%
    UAE, Dubai
    .DFMGI
    1.0%
    13.7%
    Banking
    2.8%
    5.3%
    Real Estate & Construction
    0.9%
    19.8%
    Investments & Financial Services
    -3.9%
    15.8%
    Telecommunication
    6.5%
    28.4%
    Companies Transactions

    Companies Transactions

    • Aramex, the Dubai-based courier company, has announced a rise of 12% in its Q1 net profits for 2016 compared to the same period last year as the company achieved a net profit of 96.9 MM AED till the end of March 2016.
    • Masdar, Abu-Dhabi's renewable energy company, has finished the delivery of 30 megawatts of utility-scale clean energy projects and 7,000 solar home systems in remote and strategic areas across Egypt.
    • Oman's Bank Dhofar -the sultanates' second largest lender by assets- is in talks with Bank Sohar -the country's fifth largest lender- on a possible merger.
    • Kingdom holding, Saudi-Arabia's investment firm owned by Al Waleed bin Talal, has posted a 25.4% fall in first-quarter net profits as income declined and finance charges increased.
    • Dar Al Arkan, one of Saudi Arabia's largest property developers, has reported a 60.7% decline in Q1 2016 net profits compared to the same period of the previous year mainly driven by falling sales revenues.
    • Aided by higher revenues and growth in customers, Abu Dhabi Islamic bank has posted a 6.9% rise in its first quarter net profits compared to the same period last year.
    • In a fundraising round led by Dubai-based private equity firm, Abraaj group, the Last-mile logistics provider Ninja Logistics has raised 30 MM USD.
    • Kuwait's finance house -the country's biggest Islamic lender- has reported a 14% rise in the first quarter net profit as it set aside less cash for bad loans and recorded lower expenses in its statements.
    • Savola group -Saudi's largest food products' company- has reported an 80.3% fall in its first quarter net profit and hence slashed it dividends.

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