GCC Macro-Outlook: Great in the Mid-Term, but What about the Long Run?

Source: The Middle East Times (Read full story)

…

After the GCC private sector had taken over leadership in investment in the 80s and 90s, capital formation too is now again led by government, accounting for more than half of total investment again in Saudi Arabia for the first time since the early 1980s. Some of this investment might help in generating private growth in the future, but much of it is just to satisfy the basic infrastructure and utility needs of growing populations; in some cases, just like in the 1970s, resources also go into prestige projects of questionable economic value. Most worryingly, much of private demand in GCC economies remains indirectly state-driven: Different from almost all other economies in the world, the majority of the wage share in GDP typically consists of public sector wages, meaning that most household demand for goods and services is indirectly state-financed.

…

KSA calls for overhaul of Arab League

Source: Arab News (Read full story)

Foreign Minister Prince Saud Al-Faisal yesterday called for setting up an independent working team to give ideas for the development of Arab League on the basis of its charter and principles endorsed by the 16th summit.  “The team should not include any politicians or representatives of any Arab country or its organizations,” the prince said during a meeting of Arab foreign ministers in Cairo. He said the team should study the reasons for the failure of Arab joint action and propose plans for boosting joint work among member countries at political and organizational levels. “The plan should be presented to the foreign ministers for discussion before passing it to Arab heads of state for approval,” he said.

…

Qatar, Saudi discuss easing trade barriers

Source: The Peninsula (Read full story)

…

The meeting called on the concerned authorities in the two countries to quickly complete the examination of the draft memorandum of understanding extended by the Qatari side, and which is related to the establishment of a mechanism for the execution of the joint investments between the two countries, and forwarding whatever results to the Joint Preparatory Committee of the Coordination Council.  Qatar National Bank (QNB), Masraf of Al Rayan and Barwa Bank  expressed their willingness to open their branches in Saudi Arabia as per the regulations applicable in this regard.

…

Hadi rejects efforts to broker Al-Qaeda truce

Source: Arab News (Read full story)

…

The mediators, who launched the initiative in January, had already revealed in a statement on Feb. 5 that their efforts had run into trouble. They said Hadi had refused to sign up to a truce proposal which had been accepted by AQAP chief Nasser Al-Wahishi. The collapse of the mediation bid came as a suspected Al-Qaeda suicide bomber rammed an explosives-laden car into a building in Loder, killing 12 pro-government militiamen. Al-Qaeda militants were driven out of most cities in Abyan province, including Loder, in June last year in an offensive by troops backed by militia. Yemeni forces continue to hunt militants in the rugged south and east, aided by US drone attacks.

…

Dubai’s Emirates Airline picks banks for potential sukuk issuance

Emirates Airline, Dubai’s flagship carrier, has hired six banks to arrange a potential dollar-denominated, benchmark sukuk sale, lead arrangers said on Wednesday, in what would be its second bond sale this year. Emirates, owned by the government of Dubai, picked Citigroup, Standard Chartered, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank and Emirates NBDCapital for the planned sale. Dubai, which is recovering from a property-led crisis in 2009, is taking advantage of improved investor sentiment and strong liquidity in the Islamic bond market to raise financing for its state entities at relatively cheaper rates.

…