Saudi Arabia - Castlereagh

VAT hike aims to shore up Saudi’s finances amid low risk of public resistance

03 Jun 2020

**Written and disseminated among select contacts on May 12**

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 inevitable, but the austerity measures are far-reaching and will hit Saudis at a time when many businesses are already struggling amid severely restricted economic activity.

Rachna Uppal | Senior Analyst | r.uppal@castlereagh.net

Saudi ports: Bigger private sector role in development, overcapacity risk looms

28 May 2020

**Written and disseminated among select contacts on May 5**

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. The government has improved regulations and set up sizeable investment funds for strategic projects to attract foreign players, but current market conditions may deter or impact investments.

Daniel Moshashai | Regional Analyst Infrastructure & Geopolitics | d.moshashai@castlereagh.net

Can Saudi container ports demand keep up with capacity?

26 May 2020

Daniel Moshashai
Over the last decade the volume of container throughput handled at Saudi ports has nearly doubled, due in large part to privatisation, regulatory changes and high-tech equipment. With ever more attention directed towards capturing Red Sea trade flows, Riyadh’s port development objectives are part and parcel of its broader goal of diversification. However, a closer look at the port story shows inconsistent growth and an uncertain future, leading to concerns of overcapacity.

Turkish power sector looks for COVID-19 restructure

2 Jun 2020

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.

Climate change and migration – the next big challenge for MENA?

22 May 2020

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?

19 May 2020

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.