DUBAI, Sept 30 (Reuters) – Middle East fund managers favour
United Arab Emirates stock markets over other bourses by a large
margin as the region struggles with low oil prices and an
unstable global environment, a monthly Reuters survey shows.
Gulf stock markets are in a difficult period as cheap oil
slashes the state revenues of energy exporting countries and
begins to tighten liquidity in banking systems.
DUBAI, Aug 30 (Reuters) – The cost of insuring against a
Saudi Arabian sovereign debt default has dropped sharply in the
past few days because of the rebound of global oil prices,
market data showed on Sunday.
Last Monday, five-year Saudi credit default swaps
soared as high as 120 basis points, from around
60 bps late last month.
DUBAI, Aug 20 (Reuters) – Saudi Arabia’s riyal fell in the
forwards market on Thursday as oil prices dropped and Saudi
equities fell, prompting some traders to hedge against the risk
of the riyal’s peg to the U.S. dollar eventually coming under
One-year dollar/Saudi riyal forwards jumped as high
as 305 points, their highest level since March 2003, from
Wednesday’s close of 250 points. The move signalled traders were
increasingly locking in rates to protect themselves against
potential riyal depreciation over the next 12 months.
DUBAI, Aug 16 (Reuters) – Turmoil in the Saudi Arabian money
markets suggests that financing the government’s budget deficit
in an era of cheap oil may not be smooth as banks worry about
the risk of a liquidity squeeze.
The government sold 20 billion riyals ($5.3 billion) of
riyal bonds to banks last Tuesday to help to cover a huge
deficit caused by low oil prices. It was only the second
sovereign bond issue since 2007; the first, placed with
quasi-sovereign institutions, occurred in July.
DUBAI, Aug 12 (Reuters) – A former senior official at Saudi
Arabia’s central bank says he believes the kingdom may soon
change the way it manages its oil wealth as part of efforts to
protect its financial reserves in an era of cheap crude.
The Saudi Arabian Monetary Agency (SAMA) manages the vast
bulk of petrodollars earned by the world’s top oil exporting
country; net foreign assets at the central bank totalled $664.5
billion in June.
DUBAI, Aug 9 (Reuters) – Pressure on Saudi Arabia’s state
finances is mounting as oil prices fall but the latest official
figures suggest the world’s top crude exporter still has at
least several years before it faces a budget crunch.
Brent oil sank last week below $50 a barrel, near
six-year lows, from $70 three months ago. That promises to
increase the rate at which the kingdom is drawing down its
foreign reserves to cover its budget deficit.
DUBAI, July 28 (Reuters) – The United Arab Emirates has
become the first Gulf state to take a major step towards taming
the gas-guzzling habits of its drivers, who see cheap fuel as
part of their birthright.
The UAE said it would raise domestic prices for gasoline and
cut them for diesel in a politically sensitive reform designed
to save it money and encourage fuel efficiency.
DUBAI, July 27 (Reuters) – The government of the United Arab
Emirates is expected to cut spending by 4.2 percent this year as
it begins to retrench because of low oil prices, which are
slashing its energy export revenues, a central bank report said
The UAE does not regularly reveal consolidated state budget
data, and figures released in the quarterly report were the
first detailed picture of how authorities in the second biggest
Arab economy are responding to cheap oil.
DUBAI (Reuters) – How to spend $100 billion may sound like a pleasant problem to have, but it is one of several economic policy headaches looming for Iranian President Hassan Rouhani after this week’s nuclear deal promised to lift sanctions crippling the economy.
Rouhani, and the technocratic cabinet he has installed, will have to manage a trade and investment boom without destabilizing the economy, and push through reforms to attract foreign capital without triggering a political backlash at home.
DUBAI, July 14 (Reuters) – Iran is preparing for a trade and
investment boom that could reshape the region after agreeing
with world powers to curb its nuclear programme, paving the way
for sanctions that have stifled its economy to be lifted.
With just under 80 million people and annual output of some
$400 billion, Iran is set to be the biggest economy to rejoin
the global trading and financial system since the break-up of
the Soviet Union over two decades ago.