• April 4, 2022

    Biggest & Fastest Wealth Creators in GCC (2012-2021) Surprisingly it is not a static list

    Investor’s motive to invest in any asset or company is to increase their wealth. Likewise, companies also aim to increase their operating performance, expand their assets, and add value to their shareholders. In GCC markets, top 25 wealth creating companies have added USD 330billion wealth to their shareholders over the last 10-year period (2012-21). The pace of wealth creation of these companies is also robust with a CAGR of 36% compared to S&P GCC Composite Index with a CAGR of...

  • 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...

  • February 2, 2022

    Assessing the impact of UAE’s corporate tax

    Moving away from oil dependence has been viewed as a crucial step to ensure sustainable growth in UAE and broader GCC, with taxation being a key means to increase the share of non-oil revenue. UAE has already taken that step in 2018 when it introduced 5% Value-added tax. Now it has taken a step further in this direction through introduction of 9% corporate tax at federal level from June 01, 2023. Decline in oil prices since mid-2014, followed by the...

  • December 7, 2021

    GCC Fixed Income: Ratings outlook of Saudi Arabia and Bahrain upgraded to stable

    Saudi Arabia and Bahrain saw outlook upgrades in November. Moody’s has revised Saudi Arabia’s outlook from negative to stable on expectation that country would reverse most of its 2020 debt increase while maintaining fiscal buffers. S&P has revised Bahrain's outlook to stable from negative, citing the fiscal reforms undertaken to strengthen its economy. Higher oil prices and support from other GCC members are also expected to help the country improve its fiscal position. The countries had also issued bonds during...

  • November 11, 2021

    GCC Fixed Income: UAE issues debt for the first time at federal level

    UAE federal government has raised USD 4 billion in its debt capital market debut with orders over USD 22.5 billion, an oversubscription of 5.6x. This is the first time that UAE raises funds at a federal level. The bonds were issued in three tranches with 10, 20 and 40 year tenors. It plans to issue more dollar-denominated bonds in 2022 and would also be exploring green bonds and local currency debt. Another issuance is that of Saudi Arabia. The country...

  • November 10, 2021

    GCC markets gain in October on rise in oil prices and strong earnings

    GCC markets were positive for the month of October strengthened by strong earnings and sustained increase in oil prices. S&P GCC composite index rose by 2.3%, with Kuwait, Qatar and Abu Dhabi leading the gainers. Saudi Arabia’s main index rose 1.8% in October and had reached 15-year highs during the month. Dubai gained the least among GCC markets at 0.7%. GCC Market Performance Source: Refinitiv Among the GCC blue chip companies, the best performer was Al Rajhi Bank (Saudi Arabia),...

  • November 9, 2021

    Kuwait leads GCC markets in October

    Kuwait was the best performing GCC market in October, supported by the rise in oil prices. The Boursa Kuwait All Share index registered gains for the eighth consecutive month, gaining 3.5% for the month and extended its yearly gains to 28.2%. Kuwait government had lifted precautionary restriction measures for COVID-19 from Oct 24, with certain conditions. Kuwait Market Performance Source: Refinitiv Among sectors, the Consumer Discretionary was the top gainer, rising 13.1% followed by Financial Services at 9.1%. Utilities sector...

  • October 12, 2021

    What’s behind Kuwait’s increasing fiscal breakeven oil price?

    For long, Kuwait’s fiscal breakeven oil price remained low and it had been a key strength for the economy. However, the situation is fast changing. Fiscal breakeven oil price can be defined simply as the oil price that balances an oil‐exporting country’s fiscal budget. Upon comparing a country’s fiscal breakeven oil price with the international oil price, one can gauge the fiscal health of the country. Lower fiscal breakeven oil price than the market price would lead to surplus and...

  • September 8, 2021

    Oil revenues & private sector growth to speed up GCC economic recovery in 2022

    As the world charts its recovery from COVID-19’s impact, businesses and trade around the world begin to hit normalcy, reviving the global demand for oil and consequently the global oil prices. As of August’21, price of IPE Brent is up nearly 41% year to date. OPEC+ is firm on its stance of cutting oil production until mid-2022, this is set to support global oil prices and provide renewed vigour for GCC economies. According to Institute of International Finance (IIF), the...

  • September 5, 2021

    GCC Stock Markets – Positive earnings growth strengthen business optimism

    According to our recently released Monthly Market Review for the month of August, GCC equity market gained by 3.6%. At country level, all GCC markets except Oman registered gains for the month. Globally, equities continued their bullish rally as indicated by the MSCI World Index which gained by 2.3%, extending YTD gains of 16.8%. MSCI EM Index gained towards the month-end recuperating from its mid-month weakness. U.S and U.K were also positive for the month. GCC Markets: Most markets end...