GULF WEEKLY: All except Kuwait hike rates, Saudi relations with Iran and Syria advance, Kuwait’s political crisis deepens
A skimmable summary overlaid with our analysis and links. Headlines:
* Gulf central banks, except for Kuwait’s, mirrored the Fed’s +25bp hike, as usual.
* S&P upgraded Saudi Arabia’s credit rating to A, and Moody’s added a positive outlook.
* Saudi and Qatari investors were hit hard by Credit Suisse, owning a fifth of equity plus AT1 bonds.
* The Saudi and Iranian foreign ministers spoke, and Iran’s president has been invited to visit KSA.
* Saudi Arabia is in Russian-mediated talks with Syria, whose president just visited the UAE.
* Inflation in February rose to 4.9% in Dubai and 1.9% in Oman, but eased to 3.2% in Kuwait.
* Kuwait’s constitutional court annulled last year’s elections and reinstated the former parliament.
* Kuwait’s cabinet formation has been delayed by the development. New elections may be held.
* Oman’s GDP grew by 4.3% in 2022 (10.2% oil, 1.4% non-oil, returning to the 2019 level).
* Oman’s unemployment jumped sharply to 5%, the most on record, but this might be a data quirk.
* New data on Bahrain’s debt suggests that less Gulf aid was disbursed in 2022 than planned.
* The IMF’s Article IV report on Lebanon was very blunt about the failure to implement reforms.
* Databank updates: Oman GDP; UAE fiscal; Moody’s forecasts for Saudi, UAE and Abu Dhabi; Inflation for Dubai, Kuwait and Oman.
Now read on...
Register to sample a report