Interpreting Middle East Economic News and Analyzing Market Trends

Category: Turkey

Turkey issues $1.25 billion sukuk and sets up Islamic finance center as it finally embraces Islamic finance

Istanbul

 Source: Haberler

The Turkish government decided to jump back into the sukuk market with its latest $1.25 billion sukuk al-ijara.  The country’s first sovereign sukuk was back in September 2012 with a $1.5 billion issue.  The first issue as well as this latest issue have been very successful with high demand from the Middle East.  So much so that Turkey has now decided to embrace Islamic finance by setting up an Islamic finance research center.

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The idiots guide to understanding the Middle East

Idiots Guide to ME

Image source: @DismantleFed

 

For everyone out there who’s confused as to what’s going on in the Middle East, @DismantleFed put together a nice graph summarizing all the players, who they play with and who they don’t play with.  Still confused?  Well, this is the Middle East.  Click on the graph above to get a full-size version.

 

     

What’s really behind the protest in Turkey

Protests in Turkey, which began as a protest against government plans to develop a city park, have now engulfed the country into nationwide protests.  It’s no longer about a park, or even stricter laws on alcohol sales as some have suggested.  The police clamp-down on park protesters was merely the spark that set everything thing else off.  It was the tipping point.

 

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Kurds sell oil in defiance of Baghdad, dispute to escalate

Kurdistan stopped oil exports earlier this year in an attempt to resolve the dispute with the central government.  It was also under pressure from international oil companies to come to a lasting agreement in order to avoid having their contracts declared void by Baghdad.  International oil companies are heavily invested in Kurdistan, which is seen as having a more favorable business environment and less corruption than Baghdad.  Last week, Kurdistan began selling oil on international markets again to return the snub it received from Baghdad regarding the 2013 budget.

 

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Egypt close to default and Bahrain one step away from junk bond status

Cyprus has been dominating the financial news over the past two weeks.  The crisis seemed to come out of nowhere and rattle financial markets.  There are many questions that come up with events like these.  One key question is, did this crisis really come out of nowhere?  Another key question is, how can we spot potential crisis in the future?  What about the Middle East and the GCC in particular, are there any trouble spots?

 

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