GULF WEEKLY: OPEC+ will taper, ICJ backs Qatar, Oman discusses VAT law, Sharjah bond

GULF COUNTRIES - Report 17 Jul 2020 by Rory Fyfe and Justin Alexander

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

* OPEC+ is pressing ahead with its taper but Libya’s oil blockade is back on.
* The ICJ ruled in Qatar’s favor over the airspace blockade but Saudi banned beIN Sports.
* The IMF downgraded its GDP growth forecasts for the GCC by 4.4pp but maintained its deficit forecasts.
* Saudi and Abu Dhabi announced plans for introducing exchange-traded derivatives.
* Sharjah issued a $1bn 30-year bond at 4%.
* Dubai and Bahrain both announced additional stimulus measures.
* Kuwait’s long awaited debt law is being introduced to parliament but probably won’t pass.
* Oman’s VAT law is being introduced to parliament and will pass, hopefully soon.
* Bahrain is drawing $450m from the Future Generations Fund to finance the deficit.
* Bahrain upheld death sentences on two Shia, despite criticism of confessions under torture.
* Tunisia’s PM resigned, and the country is requesting debt restructuring from Qatar and Saudi.
* Lebanon’s PM is hopeful about support from Kuwait and Qatar. We are more skeptical.
* Jordan ruled that the Muslim Brotherhood is not a legal political entity in the country.

Now read on...

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