​GULF WEEKLY: Oman reforms subsidies, Dubai Q2 GDP -18%, vaccines roll out

GULF COUNTRIES - Report 24 Dec 2020 by Justin Alexander

A skimmable summary of key developments overlaid with our analysis and links to further information. Headlines include:

* JCPOA foreign ministers and House Democrats support a speedy US return to the deal.
* Qatar and Bahrain made encouraging comments related to resolving the Gulf rift.
* However, the UAE is more equivocal and details of a large hack of Al Jazeera is a complication.
* All Gulf states have now received their first vaccine doses.
* Capital Intelligence put Saudi (A+ rating) on negative outlook.
* Dubai’s non-oil GDP contracted by an estimated -18% in Q2, considerably more than its peers.
* Qatar’s hydrocarbon output recovered in November after LNG train outages the previous month.
* Sheikh Nasser Sabah, a senior Kuwaiti royal considered as a potential emir, died unexpectedly.
* Oman announced significant reforms to reduce electricity and water subsidies (which total $2bn).
* Iraq devalued its currency by a fifth, to the lowest since 2006, given its fiscal crisis and falling reserves.
* Lebanon’s airline (owned by the central bank) will stop accepting dollars held in local banks.
* Israel is headed for its fourth election in under two years, with the right expected to dominate.

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