CGI Gulf Insights of the week-March-15 (273)

ByCGI Gulf Insights of the week
Monday, 15 March 2021
Published inMarch 2021

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March 2021

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Issue No: 261

Country Risk Update - Oman

Risk Indicator - DB5a

Risk Level - High

Ratings Trend - Deteriorating

Political risk has been alleviated by the Gulf rapprochement, which will help support strained government finances and therefore reduce socio-political tensions. Sultan Haitham's (so far) smooth succession reduces the risk of domestic instability and increases the likelihood of needed fiscal reforms. The economy has good potential for diversification, including tourism and logistics.

MARKET OVERVIEW

Goldman predicts plunge in Gulf borrowing needs

(source:Arabian Business)

The Gulf Cooperation Council’s borrowing requirements could drop to $10 billion over the next three years from about $270 billion, if oil prices continue to stay elevated, according to Goldman Sachs Group Inc. If prices for the commodity average $65 a barrel and all else is equal, borrowing needs for the six countries comprising the...

Abu Dhabi agritech firm Pure Harvest pulls in $50m via sukuk

(source: Gulf News)

After music, Dubai's asset management company Shuaa Capital is turning its attention to farming. It led a $50 million structured sukuk for Pure Harvest Smart Farms, the UAE-based agri-business. Shuaa has also co-invested in Pure Harvest through its managed funds as part of this round...

Deutsche Bank expects revenue dip as trading slows

(source: The National)

Deutsche Bank expects revenue to decline “marginally” this year as a trading boom in the wake of the pandemic weakens before growth resumes next year. Germany’s largest lender predicts that revenue in the investment bank will decline as volatility normalises, it said in its annual report published on Friday........

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GCC banks brace for new wave of mergers after ‘triple shock’ to profitability

(source: Khaleej Times)

The GCC banking sector is bracing for a second wave of mergers and acquisitions (M&A) after suffering a triple shock to profitability in 2020 from lower lending growth, lower-for-longer interest rates, and higher cost of risk, industry analysts said. The second M&A wave could begin when the full impact of the weaker ...