• May 18, 2022

    GCC Logistics Sector: 2022 Outlook & Opportunities

    Industrials and logistics have been identified as two core pillars to diversification agendas and key drivers of Foreign Direct Investments (FDI) into GCC economies. The GCC has become a central node in the worldwide circulation of commodities. The reasons for the growth of the Gulf’s logistics infrastructure relate to its strategic geographic location along the Asia–Europe trade route, which has resulted in large levels of expenditure on mega transport infrastructure in various GCC states, including ports, airports, trains and roads....

  • March 17, 2022

    Five Digital Shifts Impacting KSA Banks

    Banks have been adopting digitalization at a faster pace driven by the covid-19 pandemic situation that entailed surge in contactless transactions. There is an increase in number of fintechs in the recent past and new neo banks are emerging across the globe. Almost 53 per cent of the global population is expected to access digital banking by 2026, according to Juniper Research. In 2018, the Middle East received less than 1% of worldwide FinTech funding, but it is growing at...

  • February 22, 2022

    Excel Model to assess interest rate impact on Kuwait banks

    Feel free to download our Interest Rate Sensitivity Model here and assess the impact for your assumptions. USA’s consumer price index rose 7.5% y-o-y in January 2022 which is the highest 12 month increase since 1982. The financial markets speculate for a hefty 50 basis points interest rate hike from the Federal Reserve next month, which would be first since 2018. There are fears that the US central bank will be more aggressive in its rate hikes. According to Goldman...

  • February 16, 2022

    Excel Model to assess interest rate impact on Saudi Banks

    U.S. consumer prices rose solidly in January 2022 (7.5%, YoY), leading to the biggest annual increase in inflation in 40 years, fueling financial markets speculation for a hefty 50 basis points interest rate hike from the Federal Reserve next month, which would be first since 2018. There are concerns that the US central bank would be more aggressive in its intensity of rate hikes and Goldman Sachs expects the Federal Reserve would be raising interest rates seven times this year...

  • October 19, 2021

    The Middle East Is Looking to Dominate the Hydrogen Race

    Climate control having become a top item on global agenda there is a rush to adopt non-fossil fuel sources like wind, solar and hydrogen. The development of wind and solar energy is progressing rapidly and the cost of power generation from these sources is falling rapidly. The renewable power sector growth is fueling ambitions for a hydrogen fuel economy for transportation, power generation, industry and residential heating purposes. Sources indicate that we may see hydrogen starting to become competitive with...

  • September 29, 2021

    Dubai World 2010 to China Evergrande Group 2021; Looking Beyond Leverage

    From a bird’s eye view, the Evergrande debt crisis of 2021 and the Dubai world real estate crisis of 2010 would seem very close. In both the debacles, the supply outstripped the demand and leverage, being the double-edged sword, hampered the company finances with timely contractual obligations due in a period marked with high volatility and liquidity crunch. Evergrande group has debt worth USD 88.8 billion in 2021 relative to Dubai World’s debt of roughly USD 59 billion in 2010....

  • September 28, 2021

    Private sector participation in Saudi Healthcare picks up pace

    Saudi Arabia has recently undertaken initiatives to increase private sector participation in its healthcare sector and improve competency of its healthcare workforce. The country has also highlighted key segments of focus in the healthcare sector. Saudi Arabia’s growing population with expected increase in average age and rising lifestyle related diseases are indicative of the uptrend in demand for healthcare in the country. As the Saudi Healthcare sector is predominantly operated by Ministry of Health (MoH), the demand could overload public...

  • September 20, 2021

    Changing consumer habits amid COVID-19 accelerates decline of Saudi Arabia bank branches

    Bank branches operating in Saudi Arabia have reduced by 4.6% y/y in Q2 2021 to 1,969 branches (SAMA). The number of branches had been on a year-on-year declining trend since Q3 2020, with the current quarter posting the highest decline. The number of ATMs has also decreased by 9% y/y in Q2 2021. Operational considerations and uptake of digital banking, accelerated by COVID-19, seem to have contributed to the trend. Total Bank Branches in Saudi Arabia Source: SAMA According to...

  • September 12, 2021

    Profits at UAE’s major lenders reached USD 4 billion in H1 2021

    Profits at the four largest UAE banks rose during the first half of 2021 after an improvement in the operating environment led to lower loan-loss provisions, rise in non-interest income and improvement in operating efficiency. The combined net profit of four major banks, First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB) reached USD 4 billion in H1 2021, up 17% from the same period last year. The four big banks...

  • September 6, 2021

    Kuwait Luxury Retail – Evolving amid COVID-19

    Kuwait boasts the presence of several major luxury brands such as Prada, Gucci, Louis Vuitton and Chaumet, Bottega Veneta etc. Ranking 13th in the world in terms of per capita GDP, its affluent and brand conscious population, young demography, and a growing population position Kuwait’s luxury retail market favorably. A dedicated luxury retail district in The Avenues, the largest mall in Kuwait, homegrown luxury brands like K7L and e-commerce players such as Chic Kuwait further highlight the uptake of luxury...