GULF WEEKLY: Saudi invests in Dubai and Oman, Q3 GDP stronger in Bahrain than Oman, Oman signs LNG deal with Japan

GULF COUNTRIES - Report 30 Dec 2022 by Justin Alexander

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

* Israel’s hardline government could undermine warming relations with the Gulf.
* Saudi Arabia’s current account surplus rose to 17% of GDP, while Qatar’s was around 29%.
* PIF invested another $0.9bn in Lucid Group and completed a $1.2bn deal with Olam.
* Inflation rose slightly in Qatar and Bahrain but eased further in Oman and Kuwait.
* A Saudi state-owned investor is taking a $2.4bn 10% stake in Dubai’s Jebel Ali.
* Dubai recorded strong tourism in November, although still less than in 2019.
* Qatar budgets a 3.5% of GDP surplus on oil at $65, Oman a -3% deficit on $55 oil.
* Kuwait’s 2021/22 outturn showed 7% wage growth, and tax revenue -12% below budget.
* Oman launched a gas company in the style of EDO to take gas costs off-budget.
* Oman’s non-oil GDP contracted -1% y/y in Q3 as construction continued to drag.
* Oman signed an LNG contract with Japan and a petrochemical deal with SABIC.
* Bahrain’s non-oil GDP was up 4.2% y/y in Q3 but is not quite back to its 2019 level.
* Bahrain’s oil growth was weak at 1.2% due to lower output from the onshore field.
* Fitch affirmed Bahrain but doesn’t expect it to achieve even a central government surplus.
* Turnout for Tunisia’s election was just 9%, and unions are opposing the austerity budget.
* Egypt hiked rates by 300bp, lifted import restrictions under the IMF deal and found more gas.
* Databank update: Oman and Qatar budgets, Bahrain and Oman GDP, Qatar & Saudi BoP, Inflation for most states etc.

Now read on...

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