Interpreting Middle East Economic News and Analyzing Market Trends

Category: Saudi Arabia

Saudi Arabia backtracks on Aramco sale but it still needs the money

Saudi Aramco

On Friday (Jan. 8), news hit the markets that Saudi Arabia might take its crown jewel (Aramco) public to help offset the country’s mounting budget deficit.  On Monday (Jan. 11), the story died before all the speculative angles of why the Saudi’s might be interested in selling could be analyzed.  The truth is a sale of Aramco will eventually happen but not until all other sources of raising cash are exhausted.  The bottom line is that the country needs cash and fast.

Read more ...

Macroeconomic Outlook for Kuwait and the GCC

I was invited to speak at the IFN Forum Kuwait, which was held in Kuwait on October 19, 2015.  I gave a presentation on my outlook for Kuwait and the rest of the GCC countries in light of the 60%+ fall in the price of oil over the past year.

Read more ...

“Camels Don’t Fly, Deserts Don’t Bloom:” An update on Saudi Arabia’s water problems

World Desalination Capacity

Click on image to enlarge

The title above is taken from Elie Elhadj’s paper on the coming water crisis in Saudi Arabia.  The paper was published in 2004!  Click here to read the full report.  We have also reported on the water crisis in Saudi Arabia here and here.  Today, there have been no effective solutions to the problem and it is only getting worse.

Read more ...

What’s behind the Saudi stock market plunge? (Hint: oil)

Image Source: Gulf Business

 

Traders in Saudi Arabia have been questioning the reasons behind the market’s recent plunge according to Reuters, but the answer is right in front of them.

 

Read more ...

Saudi stock market welcomes foreigners, with conditions

Saudi Tadawul launch of NCB

Source: CNN Money

The Saudi Stock Exchange (Tadawul) opened up this week to foreigners investors.  There are, however, conditions foreigners must meet before they are allowed to invest and there are questions on the timing of the move.  Is it too little too late or is Tadawul too early?

Read more ...