Jon Gorvett
Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
VAT hike aims to shore up Saudi’s finances amid low risk of public resistance
Saudi Arabia announced a series of measures on Monday – including a three-fold hike in VAT from July – to address a sharp deterioration in its financial position. A policy response to the twin crises of lower oil prices and the global coronavirus pandemic was...Jordan’s government eases Covid-19 restrictions but economic revival remains far off
Minister of Industry, Trade and Supply, Tareq Hammouri announced on Sunday, May 3, that all economic sectors are permitted to reopen at full capacity starting the following Wednesday as long as Jordanian nationals comprise 75% or more of the work force. Whilst the...Bigger private sector role in Saudi port development, but overcapacity risks loom
Increasing private sector investments into Saudi port developments reflect the big potential of the maritime and logistics sector, but there is a risk that capacity may end up exceeding global demand. Although the Saudi government has improved regulations and set up...Aramco financing needs tested amid economic upheaval
Saudi Aramco’s success in raising billions in financing to help fund its acquisition of petchem firm Saudi Basic Industries (SABIC) and maintain its ambitious growth strategy will indicate the level of investor appetite for lending to Saudi names in a global...UAE construction to struggle in current conditions, but potentially emerge a more streamlined and efficient sector
Government aid measures to support the construction industry will help lessen the impact of low oil prices and economic slowdown from the coronavirus pandemic. Nevertheless, companies will be pushed to make critical decisions about project pipelines, efficiency and...Qatar bond plans will be market test for opportunistic Gulf borrowers
Qatar is set to become the first Gulf country to tap global bond markets since oil prices plummeted last month. In spite of a low-oil-price environment and COVID-19-related global economic slowdown, the country on Tuesday began marketing five- 10- and 30- year bonds,...Ratings downgrades in Kuwait, Oman add to growing GCC economic concerns
Ratings downgrades in Kuwait and Oman, prompted by plunging oil revenues, widening deficits and increased borrowing needs, will make accessing global funding more expensive and difficult, especially for regional economic laggard Oman. Although important, ratings do...Al Zurfi’s nomination as PM a first step towards ending two-year political deadlock in Iraq
After the Iraqi parliament failed to appoint a new prime minister within the 15-day deadline set by the constitution, responsibility for choosing the new candidate passed to President Barham Salih, who nominated former Najaf governor Adnan Al Zurfi to the post. It is...Kuwait debt law delay could weigh on economic recovery post COVID-19 outbreak
A new debt law allowing Kuwait to tap global debt capital markets is unlikely to be approved and implemented in the near future, although the impetus to do so may gain traction as a global rout on oil prices and economic lockdown from the COVID- 19 pandemic dents...Government push essential to Oman’s diversification plan, but oil market rout will weigh
Cabinet changes are widely expected under Sultan Haitham, with those ministries holding key reform priorities likely to be targeted first. These include the finance ministry, the ministry of commerce and industry, and potentially the ministry of manpower, tasked with...MBS moves to quash dissent with detainment of senior Saudi royals
Senior princes, including King Salman’s brother Ahmed bin Abdulaziz Al Saud and his son Nayef, head of Land Forces Intelligence and Security Authority; and Mohammed bin Nayef, former Crown Prince and interior minister and his younger half-brother Nawaf, were...Recent Posts
Turkish power sector looks for COVID-19 restructure
Climate change and migration – the next big challenge for MENA?
The level of disruption caused by the coronavirus pandemic has revealed how ill-prepared governments and international institutions are for anything beyond their routine activities. When normality is once again restored, the world must learn the lessons from today’s events in order to prepare for, and mitigate, the worst effects of an even bigger challenge: climate change and global warming. For the MENA region, one of the most pressing questions will be how to handle flows of people displaced by climate change.
How will MENA handle mass urbanisation?
Perhaps more than anywhere else in the world, rapid urbanisation in the MENA region will create significant investment opportunities for a variety of domestic and foreign firms. North Africa will see high-volume, low-tech developments, while capital-intensive projects such as rail and smart cities will be concentrated in higher-income nations in the Gulf. Elsewhere, a widening urban infrastructure deficit will stoke social instability.