GCC markets offer strong hedge against global economic chaos
Amid the ongoing global economic turbulence, the Gulf Cooperation Council region has demonstrated resilience, emerging as a dynamic hub. Its capital markets have weathered challenges, from US tariff shocks to fluctuations in oil prices, according to the group chief executive of EFG Holding.
In an interview with Arab News at the 19th Annual EFG Hermes One-on-One Investor Conference in Dubai, Karim Awad highlighted the region’s solid fundamentals, emphasizing that concerns over external shocks often overshadow its long-term growth potential.
“You’re seeing more IPOs coming to the region, and more sectors that are being represented on different exchanges, and this is all a reflection of the dynamism of the region as a whole,” Awad said.
Mass citizenship stripping in Kuwait cements authoritarian turn: critics
Eleven months ago, Sheikh Meshaal Al-Ahmad Al-Sabah, the Emir of Kuwait, dissolved the country’s National Assembly and suspended it indefinitely. Since then, the wealthy Arab state—long known as the sole semi-democratic member of the Gulf Cooperation Council (GCC)—has moved in an authoritarian direction. Highlighting this reality is the fact that roughly 42,000 Kuwaitis have lost their citizenship since Sept. 2024, when the government began enforcing amendments to Kuwait’s 1959 Nationality Law. For a country with a total population of less than 5M, of which only 1.5M are citizens, the campaign has raised alarm and stirred debate.
GCC issuers likely to remain resilient: S&P
GCC issuers are expected to remain resilient, although credit conditions in emerging markets may weaken over the coming quarters, S&P Global Ratings has said.
However, the GCC resilience is subject to any unexpected increase in geopolitical risk or a significant reduction in oil prices, it added.
The US tariffs are likely to impair economic growth, investment, and market sentiment, the rating agency said, warning that financing conditions for emerging markets may deteriorate.
The interest-rate trajectory is uncertain, volatile market conditions are likely to increase borrowing costs and restrict market access for sectors impacted by tariffs.
S&P has lowered its oil price forecasts for 2025-2028 to reflect weaker underlying fundamentals and the OPEC+ decision to increase oil supply.
UAE economy likely to grow at 4.7pc this year: central bank
The UAE economy is expected to grow by 4.7 percent this year, the Central Bank of the UAE said.
According to statistics released by the country’s apex bank, gross domestic product (GDP) expanded by 3.9 percent last year, driven by the strong performance of the oil sector and other non-oil sectors. Non-oil foreign trade of goods also increased by 13.8 percent, exceeding Dh2.8 trillion, supported by the prominent role of the Comprehensive Economic Partnership Agreements.
According to the central bank’s annual report, the banking system also continued to achieve exceptional strides in the UAE’s financial indicators, with total banking sector assets reaching Dh4.56 trillion – a growth of 12.0 percent.
UAE’s total banking assets grow to $1.24 trn in 2024: CBUAE
The UAE’s banking system achieved exceptional strides in 2024, with total banking sector assets growing 12 percent to AED4.56 trillion ($1.24 trillion). In its latest annual report, the Central Bank of the UAE (CBUAE) revealed that this growth has placed the UAE at the forefront in the Middle East in terms of banking assets, reinforcing its well-established foundations with strong fundamentals, reflected in high capitalization levels, strong profitability, sufficient liquidity and stable financial reserves.
Bahrain’s BBK and Solidarity Ink Islamic Murabaha financing contract
Bank of Bahrain and Kuwait (BBK), a leading retail and commercial bank in Bahrain, has entered into a BD58 million Islamic Murabaha financing agreement with Solidarity Group Holding to facilitate its acquisition of Bahrain National Insurance (BNI), a subsidiary of Bahrain National Holding.
Through this financing agreement, BBK reaffirms its active role in advancing Bahrain’s economic development and fostering financial resilience across the kingdom.
The agreement highlights the Bank’s proactive approach to empowering strategic ventures by delivering innovative, Sharia-compliant financial solutions that respond to the dynamic needs of clients and partners – particularly within essential sectors such as insurance.
Commenting on the signing, BBK Group chief executive Yaser Alsharifi said: “We are pleased to partner with Solidarity Group Holding on this significant transaction, enabling the successful acquisition of Bahrain National Insurance. This agreement is a testament to BBK’s dedication to delivering bespoke Islamic financing solutions that align with the highest principles of Sharia, while fostering impactful partnerships that support large-scale investments in the kingdom.”
Oman economy posts budget surplus
Oman recorded a fiscal surplus and moderate economic growth in 2024, driven by higher oil revenues and an expansion in non-oil activities, official data from the National Centre for Statistics and Information (NCSI) showed.
The Sultanate’s gross domestic product (GDP) at constant prices grew by 1.6 percent year-on-year to RO 37.7 billion ($98.1 billion), while GDP at current prices fell by 3.0 percent to RO 40.7 billion, largely due to lower oil activity.
Non-oil activities expanded by 3.7 percent, led by a strong performance in manufacturing (+8.5 percent), wholesale and retail trade (+7.1 percent), and financial services (+3.5 percent). Oil-related activities declined 3.6 percent on a real basis, as crude output and prices softened.
Manufacturing value added rose on the back of refined petroleum products and basic chemicals, while the construction sector showed modest gains.