CRIF – Dun & Bradstreet is pleased to bring to you the latest edition of our newsletter ‘CRIF Gulf Insights’ (CGI). CGI will keep you informed about the current trends in the GCC markets and highlight key events in the regional and global economy.
Best Regards, CRIF Dun & Bradstreet Communications Team
CGI | Issue 40 | October 2016
Country Risk Update – Saudi Arabia
Saudi Arabia has enjoyed a series of structural current account surpluses recently, due to strong oil revenues – a situation that allowed the build-up of significant foreign exchange reserves and minimized foreign debt, thus reducing external economic risk.
The recent sharp drop in the oil price has forced the government to draw down on these reserves and increase its debt levels. Meanwhile, financial sector risk is moderate, as capital buffers are at healthy levels and the ratio of nonperforming loans to total lending is relatively low, although liquidity is now tightening.
Business, Finance and Commodity News
Saudi sets record with mammoth $17.5bn bond issue
Saudi Arabia conducted the largest-ever emerging market bond sale on Wednesday, selling $17.5bn of debt in the government’s first international offer while attracting investor orders totaling almost four times that amount.
The huge demand, larger than many market participants had expected, was partly due to ultra-low global interest rates and funds’ frustration with a lack of high-yielding assets around the world.
UAE’s Ajman Bank said to be finalising $205m Islamic loan
Ajman Bank, a UAE based, sharia-compliant lender, is raising a $205 million Islamic syndicated loan.
The loan, which has a two-year maturity and a murabaha format, will be completed imminently.
The loan is backed by lenders including Noor Bank and Dubai Islamic Bank. Ajman Bank raised $155 million through another two-year murabaha loan last year.
Health insurance for expats in Kuwait set to jump 165% in 2017
Health insurance costs for expats working in Kuwait’s private sector will rise from $165 (KD50) to $430 (KD130) in 2017, according the CEO of Kuwait Health Assurance Company (KHAC).
Dr Ahmad Al- Saleh, CEO of KHAC, the company that oversees provision of expat healthcare in the country, said the increase in charges will be in line with the new independent healthcare system for foreigners.
Qatar Islamic Bank posts 6.8% rise in Q3 net profit
Qatar Islamic Bank (QIB), the Gulf state’s largest sharia-compliant lender by assets, reported a 6.8 percent rise in third-quarter net profit.
It made a net profit of 550m riyals ($151.1 million) during the three months to Sept. 30, compared with 515.2 million riyals in the same period a year earlier.
Kuwait’s KNPC aims to finalize OVER $5B loan by Q1
Kuwait National Petroleum Co (KNPC) expects to finalise a loan of over $5bn to finance its Clean Fuels project by the end of the first quarter of next year. It is one of the world’s largest-ever loans backed by export credit agencies, this year. This project will upgrade and expand two of Kuwait’s largest existing refineries with a focus on producing higher-value products such as diesel and kerosene for export.
D&B Article of the Week
Human Trafficking: Cause and Cure
The growth of human trafficking is often attributed to a widespread lack of awareness, which means fewer criminals get caught. With this perceived low risk and global demand for cheap services, forced labor has become the world’s fastest growing crime and the second largest source of illegal income. Many countries are now following the United States and the United Kingdom, who recently passed and amended the four laws below to increase levels of awareness, push action and strengthen the global fight against human trafficking. Policies are rapidly evolving and expanding to place legal responsibility on the corporations profiting from unethical supply chain practices, whether they are aware of it or not. This requires a deeper level of supply chain awareness from all major companies worldwide. Read More..
CRIF enhances its business operations in Russia by acquiring Microfinance Technologies Center for credit risk assessment services CRIF has announced the acquisition of Microfinance Technologies Center (MTC) in Russia – a growing industry player in the delivery of credit risk assessment services for the microfinance sector.
CRIF further reinforces its business in Germany and Poland by acquiring Deltavista’s operations
CRIF has announced the acquisition of Deltavista’s operations in Germany and Poland. Deltavista is one of the leading providers of credit bureau data and risk management services in Germany and Poland, helping organizations optimize risk management and their address processes with accurate data on private individuals and companies.
Upcoming Events this Week
Middle East Franchise Expo and Forum Oct 25 – Oct 26
Jumeirah Beach Hotel
Gulf Education and Training Exhibition (GETEX) Oct 26 – Oct 29
Dubai World Trade Centre
RECon MENA Conference Oct 30 – Nov 1
Ritz Carlton, Dubai
Reading Recommendation of the Week
The Industries of the Future
The Senior Adviser for Innovation to former Secretary of State Hillary Clinton, Ross draws on his experiences visiting startups in nearly 41 countries to identify the next big ideas in business.
Release Date: February 2, 2016
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