CGI Gulf Insights of the Week Mar 19 2017 (243)

ByCGI Gulf Insights of the Week
Sunday, 19 March 2017
Published inMarch 2017

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Hello,

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.

We look forward to your feedback at [email protected]

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Best Regards,
CRIF Dun & Bradstreet Communications Team

CGI | Issue 61 | March 2017

Country Risk Update - Bahrain

Bahrain has enjoyed a series of strong structural current account surpluses over the past decade, allowing it to build up significant FX reserves and reduce its foreign debt. However, this situation is now in reverse, with the recent sharp drop in the oil price forcing the government to draw down on these reserves and increase its debt levels. Meanwhile, financial sector risk has been given a boost by the October issue of a USD17.5bn international bond. Capital buffers remain at healthy levels and the ratio of non-performing loans to total lending is relatively low - although liquidity has tightened over the past year. According to the IMF, banking supervision is adequate, and as a result we are currently recommending LC terms.

Business, Finance and Commodity News

Four Gulf central banks hike rates after Fed, others may follow

Four Gulf central banks raised interest rates within hours of the US Federal Reserve’s rate hike, pressured by the need to protect their currencies even though an economic slowdown in the region calls for loose monetary policy. Saudi Arabia, UAE, Kuwait and Bahrain said they were lifting key rates by a quarter of a percentage point. Commercial bankers think Qatar and Oman may tighten policy within days.

Dubai non-oil trade dips for second year running in 2016

Dubai’s non-oil foreign trade fell for a second year running in 2016 as global and local issues impacted the economy. Non-oil trade stood at AED1.276 trillion last year, down 0.55 per cent from AED 1.283 trillion seen in 2015 and 4.13 per cent from a 2014 high of AED 1.331 trillion. Imports accounted for AED 803bn of trade last year, followed by re-exports at AED 330bn and exports at AED 143bn.

OPEC says oil stocks rising despite supply cut deal

OPEC said oil inventories have risen despite a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in an effort to clear a glut and support prices. In a monthly report, OPEC also said its biggest producer Saudi Arabia increased output in February by 263,000 barrels per day to 10 million BPD. OPEC is curbing its output by about 1.2 million bpd from Jan 1, the first reduction in eight years.

Dubai merger would create diverse Gulf financial conglomerate

A merger of Dubai's Shuaa Capital and Bahrain's GFH Financial would form a diverse conglomerate with a market capitalisation of about $2.5 billion and interests ranging from retail and investment banking to broking and property development. Shares in both companies have surged as some investors bet a string of deals involving Shuaa in recent months were preparations for an eventual merger with GFH, listed in both Bahrain and Dubai.

Commodity Tracker

D&B Article of the Week

New Whitepaper Explores the Arrival of Anticipatory Analytics

Almost everyone is familiar with the image of the eccentric fortune-teller gazing into her crystal ball to boldly predict the future. In the business world, teams of analytic experts are doing this everyday; they’re just using data instead of a crystal ball to get a glimpse into the future. Thanks to advanced analytics, organizations are able to understand potential outcomes and evaluate how issues can be addressed. By generating predictive models based on all the data being captured, a new level of transparency and foresight has been created that helps shape future business strategy based on historical trends. Read more

CRIF D&B Highlights

CRIF and HARMONYCREDIT established a strategic partnership for credit risk management solutions in Beijing

With CRIF's advanced credit scoring model and decision solutions, the new platform will help individuals as well as small and medium-sized and micro-companies improve credit management with effective and customized services.

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 Gulf Introduces iPulse
iPulse is a new state of the art business application that supports end-to-end field due diligence process. For more information, send an email to [email protected]

Upcoming Events this Week

Arablab 2017
Mar 20 - Mar 23
DWTC

DIHAD 2017
Mar 21 - Mar 23
Dubai Int'l Convention and Exhibition Centre

Reading Recommendation of the Week

Radical Candor: Be a Kick-Ass Boss Without Losing Your Humanity

Radical Candor is packed with illuminating truths, insightful advice, and practical suggestions, all illustrated with engaging (and often funny) stories from Kim Scott’s own experiences at places like Apple, Google, and various start-ups.

Release Date:
March 14, 2017