Interpreting Middle East Economic News and Analyzing Market Trends

Category: News

The vanishing petrodollar and its implications on financial markets


Image Source: The Daily Reckoning

It didn’t take long for the effects of falling oils prices to catch up with the global economy.  We’ve reported in the past how falling oil prices will expose the ‘shale revolution’ myth, and we are now starting to see shale companies file for bankruptcy (expect this trend to accelerate through the summer).  Now, however, we are starting to see the effects of vanishing petrodollars from the global financial system. The acceleration of this trend alone can spark another financial crisis.


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Kuwait government investments are approaching $800 billion, much larger than previous estimates

IFSWF 2014

Bader Al-Saad (center), Chairman of the Kuwait Investment Authority (KIA)


On October 22, 2014, Kuwaiti newspaper Alrai published figures from a report it had received detailing the Kuwaiti government’s finances and investments.  In it, the report states that the government’s total investments are valued at $782 billion as of June 30th this year.  Total investments are expected to top $800 billion by the end of the year.  This figure is much higher than previous estimates reported by the media.


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Dubai hotel occupancy rates plunged in July to lowest level in 18 years

Dubai Hotels

Skyline of Dubai Marina

Bloomberg just reported that Dubai hotel occupancy rates plunged in July to an 18 year low.  While July is typically a slow month for visitors because of the unbearably hot and humid weather, this July was especially bad.  What was the reason?

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Worldwide youth unemployment stuck at record levels, outlook for the Middle East is especially poor

Youth Unemployment Global

Click on map for a large image

We reported last year on the terrible outlook for youth unemployment around the world (read the story here).  The map above is an update on this global problem.  The situation is particularly bank for the Middle East and Southern Europe.  The are no indications that this problem will go away any time soon.


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Qatar invests 1.75 billion euros in Deutsche Bank, but does it know what it’s investing in?


Investment company owned Sh. Hamad Bin Jassim Al-Thani invests in Deutsche Bank


Deutsche Bank has teamed up with a Qatari investment company owned by Sh. Hamad Bin Jassim Al-Thani to help raise 8 billion euros in fresh capital for the bank.  DB claims its for expansion plans, but this comes a year after it was forced to raise 3 billion euros by banking regulators.  Are any alarm bells going off?  If not, then add to this the fact that Qatar’s 1.75 billion euro investment was purchased at a 25-30% discount… are the bells ringing yet?


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