Interpreting Middle East Economic News and Analyzing Market Trends

Category: UAE

Another UK bank flip-flops on its Mideast strategy

A man walks out of Barclays Bank in Dubai

Source: Reuters

 

Barclays is the latest UK bank to consider changing its Middle East strategy.  Earlier this year we reported on HSBC’s poor strategy in the Middle East.  This comes as two other UK banks exited the UAE market; Lloyds and RBS.

  

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What’s a better gauge of economic health; the stock market or global trade?

DP World

DP World, one of the world’s largest port operators reported a drop volume at its ports.  Stock markets are hitter new highs and stock markets in the region have risen too high too fast.  The Dubai Financial Market (DFM), for example, is up over 60% year-to-date.  So should we believe the stock market, which is telling us that all is well and the good times are here, or shall we believe global trade, which is saying things are slowing down?

 

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The UAE’s consumer debt on the rise, fueling spending across the country

 

For years now UAE banks have struggled to kick-start consumer loan growth as the corporate side was taking too long to recover from the financial crisis.  We reported last March that UAE banks were becoming more aggressive towards consumer lending and were back to pre-crisis sales tactics in order to growth their loan portfolios.  Now it seems that they got what they wanted only to set off alarm bells as some fear this growth has come too soon and is growing too fast.

 

 

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Gulf countries celebrate demise of democracy in Egypt by giving $12 billion in aid, but there are other motives

Egypt Military Coup

Days after Egypt’s military threw out Mohammed Morsi and his cabinet, Gulf countries of Kuwait, Saudi Arabia and the UAE pledged $12 billion in aid to support the country and the economy.  One reason for this quick aid package is to show their displeasure with Morsi, but there are also other reasons…

 

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Turmoil in the Middle East? Not all markets agree, Kuwait and UAE have had stellar performance so far

Syria is in the middle of a 2-year civil war with no end in sight, Egypt’s military threw out its first elected leader in decades last week, tensions in Iraq and Lebanon are escalating, Libya has been a mess since its revolution and mass-protests show no signs of stopping in Turkey, yet some GCC markets are hitting fresh multi-year highs…

 

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