GULF WEEKLY: Houthi strikes kill 6 in Saudi airports, UAE non-oil GDP contracts, Omani equities considered for EM upgrade
A skimmable summary overlaid with our analysis and links. Headlines:
* Iranian attacks on shipping were the most intense since March, sharply reducing Hormuz transits.
* Trump said there would not be major strikes on Iran before the midterms, after reports of planning.
* Yemeni forces recaptured the Bab al-Mandeb coastline, but the Houthis encircled Taiz city.
* Houthi attacks on Riyadh and Abha airports killed six, including three Saudi nationals.
* Oil had a volatile week, with Brent trading between $97 and $106. EIA hiked its Q4 forecast to $105.
* The World Bank revised its GCC forecast to a -4.3% GDP contraction and a deficit of -2.7% of GDP.
* SoftBank is seeking $100bn for AI from Gulf investors, and OpenAI is seeking $10bn from the UAE.
* Saudi Arabia and the UAE signed an MoU to cooperate on rail and electrical grid interconnection.
* The Saudi PMI rose to 55.3, with the UAE’s holding at that level. But Kuwait and Qatar saw declines.
* UAE non-oil GDP fell by -1.1% in Q2, led down by hospitality, transport and manufacturing.
* Fitch removed its Rating Watch from RAK and revised up GDP, but placed it on a negative outlook.
* Qatar’s tourist arrivals returned to growth in September, up 1% y/y, vs -40% y/y in Mar-Aug.
* QatarEnergy and QNB secured $5.5bn in loans from Asian banks.
* Kuwait saw net repatriation of portfolio flows in Q1 for the first time in seven years, at 11% of GDP.
* Oman was added to FTSE Russell’s watch list for equity reclassification to emerging market status.
* Capital Intelligence affirmed Bahrain at B, even as yields climbed to nearly 9% and CDS +350bp.
* Iraq devalued the dinar by -13% to 1,520 to the dollar, as the loss of oil exports strains the economy.
* Databank updates: UAE GDP, Kuwait BoP, GCC and RAK forecasts, Kuwait inflation, PMIs and Qatar tourism.
Now read on...
Register to sample a report