Home > Insights > Fitch ratings has announced that it has cut Saudi Arabia’s long-term foreign and local currency issuer default ratings from “AA” to “AA-” since oil prices remain weak.
Tuesday, 19 Apr 2016

Fitch ratings has announced that it has cut Saudi Arabia’s long-term foreign and local currency issuer default ratings from “AA” to “AA-” since oil prices remain weak.


Insights MENA

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Economic Outlook

Economic Outlook

  • Fitch ratings has announced that it has cut Saudi Arabia's long-term foreign and local currency issuer default ratings from "AA" to "AA-" since oil prices remain weak.
  • To meet the demands for an integrated comprehensive transportation system for the country, Qatar Rail has announced that 89% of the tunneling works has been completed in the Doha metro project.
  • Dubai Gold & Commodities Exchange (DGCX) announced that it had agreed to collaborate with two of China's biggest banks. Moreover, one of the banks will support cross border derivatives business in the Middle East and Asia and explore the possibility of becoming a settlement bank with the DGCX's clearing house
  • The Central Bank of Jordan announced that the volume of excess reserves, including overnight window deposits, held at the bank has reached 2.66 BN JOD.
  • After the approval of the Egyptian parliament on the government's economic program, the World Bank has agreed to finance the country with a 3 BN USD loan where the first 1 BN USD tranche will be provided by the bank in December.
  • According to the sixth annual CFA Middle East Societies Market Sentiment Survey, Low oil prices, geo-political instability and lower government expenditure are found to be the three most important economic issues for the region in 2016.
  • Qatar's prime minister has inaugurated the first phase of "Imdad" project along with the minister of interior. It is worth mentioning that the project aims to develop a national information system to achieve sustainability of economic and urbanization levels in Qatar.
  • According to a new report published by the Arab Petroleum Investments Corporation (APICORP), the MENA region total committed and planned energy investments are expected to reach 900 BN USD over the next five years.
  • Kuwait's state-run Kuwait Petroleum International (KPI) along with the Japanese oil refiner Idemitsu Kosan Co. have applied with Vietnam to set up a joint venture that aims to launch fuel service stations in Vietnam starting early next year and begin wholesale oil operations or direct sales to businesses in the future.
  • Amid the fall in oil prices, UAE has invited Algerian business community to explore investment opportunities in a step to diversify its economy and shifts focus to non-oil related industries to boost revenue.
Political Events

Political Events

  • Jordan's government has shut down Muslim brotherhood headquarters in the country. It is worth mentioning that the movement has been operating legally in the country for decades and has widespread grass-roots support in major urban centers.
  • After the removal of sanctions, Iran is seeking the help of the United States and the European Union to gain access to financial assets that were supposed to be unfrozen after its nuclear deal with major international powers.
  • A 7.8 magnitude earthquake has hit Ecuador's Northwest Pacific Coast killing at least 28 people and causing considerable damage.
Stock Market

Stock Market

    • .KWSE witnessed a significant increase in banking sector led by National Bank of Kuwait (NBK) and real estate sector led by Al Aqaria. On the other hand, Industrial sector declined led by Kuwait Packing and telecommunication sector led by Ooredoo.
    • .ADI banking sector increased led by National Bank of Abu Dhabi (NBAD) and Union National Bank (UNB), while real estate increased led by Aldar and Eshraq Properties.
    • .DFMGI real estate sector increased led by Emaar Properties and banking sector led by Dubai Islamic Bank (DIB) and Emirates NBD.
 
    Index Watchlist
    Weekly % Change
    YTD% Change
    Egypt
    .EGX30
    -0.2%
    6.5%
    Construction & Materials
    4.3%
    -16.5%
    Telecommunication
    -2.0%
    30.4%
    Banking
    0.5%
    3.0%
    KSA
    .TASI
    4.0%
    -5.8%
    Petrochemicals
    4.0%
    -1.5%
    Banks & Financial Services
    5.5%
    -4.9%
    Telecommunication & Information
    0.1%
    -1.5%
    Kuwait
    .KWSE
    1.3%
    -5.6%
    Banking
    1.95%
    -8.0%
    Telecommunication
    -0.1%
    3.0%
    Financial Services
    3.5%
    -0.8%
    Real Estate
    2.2%
    -10.4%
    Industrials
    -0.2%
    -7.4%
    Qatar
    .QSI
    0.7%
    -1.8%
    Banking & Financial Services
    0.4%
    -2.1%
    Industrials
    1.5%
    -0.6%
    Real Estate
    3.2%
    9.3%
    Telecommunication
    0.1%
    18.7%
    UAE, Abu Dhabi
    .ADI
    4.2%
    5.3%
    Banking
    5.6%
    -1.0%
    Telecommunication
    3.3%
    16.5%
    Real Estate
    1.8%
    22.3%
    UAE, Dubai
    .DFMGI
    4.7%
    12.6%
    Banking
    1.6%
    2.4%
    Real Estate & Construction
    7.2%
    18.8%
    Investments & Financial Services
    6.5%
    20.5%
    Telecommunication
    -0.8%
    20.6%
    Companies Transactions

    Companies Transactions

    • Beating expected forecasts, Saudi Arabia's second largest lender by assets, Al Rajhi Bank, has reported a 32.8% increase in its net profit in the first quarter of 2016 compared to the same period of the previous year.
    • Saudi Arabia's Almarai Company has announced its willingness to buy a controlling stake in the United Arab Emirates' national food products company.
    • In order to refinance shareholder funds used for its construction, the oil refining joint venture between the national oil firms, Saudi Aramco, China's Sinopec and Yasref, has obtained a 4.7 BN USD syndicated loan.
    • As a result of lower income from trading, fees and commissions, Saudi Hollandi Bank has reported a 5.1% fall in its first quarter net profits.
    • In the first quarter of 2016, National Bank of Oman, the sultanate's third largest lender by assets, has posted a 10% rise in its net profit.
    • The UAE's biggest property developer, Emaar Properties, has announced its plans to split with its Indian joint venture partner through a demerger process.
    • The Kuwait's biggest Islamic lender, Kuwait Finance House, announced that it had obtained regulatory approval to lend up to 500 MM KWD (1.66 BN USD) to a major project commissioned by a state-run refiner.

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