GULF WEEKLY: Bahrain budgets large deficit, Kuwait passes debt law, S&P turns negative on Sharjah, Oman GDP

GULF COUNTRIES - Report 28 Mar 2025 by Justin Alexander

A skimmable summary overlaid with our analysis and links. Headlines:

* Saudi unemployment fell to a record low of 7.0%, achieving the Vision 2030 goal five years early.
* S&P placed Sharjah on a negative outlook and sees debt rising to 67% of GDP by 2028.
* The UAE fined five banks and two insurance companies over inadequate reporting compliance.
* Masdar is contemplating an IPO in 2026 to raise funds for additional renewable energy investments.
* Kuwait’s budget targets about a -4% cut in expenditure relative to the IMF’s estimated outturn.
* Kuwait finally passed its debt law, including a debt ceiling of $97bn and terms up to 50 years.
* Kuwait patched up relations after the US Commerce Secretary exaggerated Kuwait’s tariff levels.
* Oman’s non-oil GDP grew by 3.9% in 2024, driven by rebounds in manufacturing and retail/wholesale.
* Bahrain’s 2025 budget targets a -$3.5bn (8% of GDP) deficit, given weak oil revenue projections.
* Bahrain expects significant non-oil revenue growth, despite dropping plans to hike VAT.
* Gaza’s death toll exceeded 50,000; Israel announced plans for annexation and “voluntary” exits.
* Lebanon appointed private equity investor Karim Souaid as central bank governor.
* Aside from the domestic Signal-gate scandal, US strikes on Yemen killed dozens of civilians.
* Iran replied to Trump’s letter via Oman, indicating openness to indirect nuclear negotiations.
* Databank updates: Kuwait & Bahrain budgets; Oman GDP; Sharjah, Abu Dhabi & UAE forecasts, etc.

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