CGI Gulf Insights of the Week 22 Jan 2017 (249)

ByCRIF GULF WEEKLY INSIGHTS
Sunday, 22 January 2017
Published inJanuary 2017

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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.

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CRIF Dun & Bradstreet Communications Team

CGI | Issue 53 | January 2017

Country Risk Update - Qatar

The fall in export earnings was primarily due to a slump in oil and gas export revenues, which dropped by 38.1% y/y to QAR79.6bn. Petrochemicals, which are Qatar’s second largest export item, also declined by more than a quarter as their prices are also linked to the oil price. Conversely, imports rose over the same period, albeit only marginally. Total imports rose by 2.2% y/y to QAR59.9bn, although in the second quarter, they contracted by 1.7%. The contraction in hydrocarbons revenues has also had a negative impact on overall growth. On a positive note, growth picked up considerably from the previous quarter, when overall real GDP growth registered just 1.1% y/y. Also, The government is starting to address the lack of innovation by encouraging R&D.

Business, Finance and Commodity News

IMF praises Saudi budget plans, says implementation key

The International Monetary Fund praised Saudi Arabia’s budget plans and said Riyadh’s goal of eliminating a huge fiscal deficit left by low oil prices by 2020 looked feasible. Riyadh announced it had cut its deficit from a record SAR367bn ($98bn) in 2015 to SAR297bn in 2016, and released a budget plan projecting SAR198bn for this year.

Dubai economy grows 2.7% in 2016, faster growth expected in 2017

Dubai’s economy grew 2.7 per cent in real terms last year despite declining oil prices and sluggish global trade, His Highness Sheikh Ahmed Bin Saeed Al Maktoum has announced. This compared to growth of around 4 per cent seen the previous year. The emirate would announce its economic outlook twice a year in January and October from now onwards.

Qatar National Bank seeks growth in Southeast Asia after Q4 profit rises

Qatar National Bank (QNB) is broadening its horizons in Southeast Asia after the Gulf's largest lender reported an 8.3 percent rise in fourth-quarter net profit, according to Reuters calculations. It follows a year in which the bank cemented its position as the largest lender in the Middle East and Africa by assets after completing the 2.7 billion euro purchase of Finansbank, Turkey's fifth-largest private lender.

Saudi's largest bank posts 7.5% rise in Q4 net profit

Saudi Arabia's National Commercial Bank (NCB) reported a 7.5 percent rise in fourth-quarter net profit as the kingdom's largest lender was boosted by higher income from commission and investments. The results are the strongest in four quarters for the bank, which like other lenders in the kingdom has seen its performance clipped by weaker activity as depressed oil prices drag economic growth to its lowest level in more than three years.

Commodity Tracker

D&B Article of the Week

Infographic: The 2016 State of Enterprise Analytics

The latest Dun & Bradstreet Global Business Impact score highlights in increase in risk for businesses across the world. The nature of risk continues to change, with four new entries among our top ten risks, led by new uncertainties associated with President-elect Trump’s policy agenda. Dun & Bradstreet’s Global Business Impact (GBI) score for Q4 2016 worsened for a third consecutive quarter, to 281 (out of a maximum of 1,000), from 243 in Q3. The Q4 figure is the second highest on record, and is only just below the all-time high of 283 recorded in Q3 2014. The latest score confirms our view that business conditions are still feeling the after-effects of the global financial crisis, and the risks have been further compounded by political issues. Business conditions are significantly worse than they were before the global financial crisis. Read more

CRIF D&B Highlights

Dun & Bradstreet acquires Avention
Dun & Bradstreet acquired Avention, which provides company, contact, and market data through its OneSource® solutions.This acquisition combines Dun & Bradstreet’s best-in-class content with Avention’s intuitive, user-friendly platform to provide sales and marketing professionals with actionable market and company information.

CRIF in the 2016 FinTech Forward Top 100 ranking
American Banker BAI ranked CRIF in its prestigious FinTech Forward Top 100 ranking of solution providers that derive more than one-third of their revenue from financial institutions.
This Top 100 ranking, which is based on 2015 revenues of hardware, software and IT services to financial institutions at worldwide level, provide validation for vendors in a highly competitive and regulated marketplace as well as highlight influencers that are shaping the industry.

CRIF assessments can be used by banks and insurance companies as ECAI ratings
On October 12, the European Commission published the definitive mapping based on which ratings issued by CRIF Ratings from November 1 can be used to fulfill the prudential capital and solvency requirements of banks, financial institutions, and insurance and reinsurance companies.

Upcoming Events this Week

ACFE Fraud Conference Middle East 2017
Jan 29 - Jan 31
Atlantis, The Palm

Arab Health 2017
Jan 30 - Feb 02
Dubai International Convention & Exhibition Centre

Reading Recommendation of the Week

Leadership Presence

For more than a decade, Belle Linda Halpern and Kathy Lubar have applied the lessons and expertise they have learned as performing artists to the work of their company, The Ariel Group. Halpern and Lubar have helped tens of thousands of executives at major companies around the country and the globe, including General Electric, Mobil Oil, Capital One, and Deloitte.

Release Date:
November 22, 2016