Kuwait plans to raise as much as $9.9 billion from international debt markets to help plug its budget deficit as lower oil prices squeeze public finances.
The Opec member also plans to borrow as much as 2bn dinars ($6.6bn) from the domestic market, finance minister Anas Al-Saleh said in speech. The budget deficit is expected to widen to 9.5bn dinars in the 2016-2017 fiscal year, which began April 1, he said.
The plunge in oil prices has prompted a flurry of international bond sales from the six-nation GCC to finance widening deficits that the IMF says could reach $900bn by 2021. Qatar raised a record $9bn in May, following a $5bn sale by Abu Dhabi. Saudi Arabia, the biggest Arab economy, has hired JPMorgan Chase & Co, HSBC and Citigroup to raise at least $10bn, according to people familiar with the matter.
“Most of the available scenarios suggest that oil prices will remain, for the foreseeable future, lower than the levels required to attain a balanced budget,” Al-Saleh said. Britain’s decision to leave the European Union “has further exacerbated markets’ volatility and uncertainty around the growth of the global economy. This may result in the accumulation of fiscal deficits,” he said.
Kuwait is rated AA at S&P Global Ratings and Aa2 at Moody’s Investors Service, the third-highest investment grade.
“Kuwait has one of the highest credit ratings in the world and I expect its bond to be well received, albeit at a price,” Anita Yadav, head of fixed-income research at Emirates NBD, Dubai’s biggest bank, said by phone. “Kuwaiti officials may opt to avoid the summer months in order to tap into the European investor base, and therefore will likely come to the market either in late July or early September.”
Kuwait estimates expenditure for the 2016-17 fiscal year at 18.9bn dinars, the minister said, while revenue is expected to be at 10.4bn dinars during the same period. Non-oil revenue will make up 1.6bn dinars of the total, he said.
Kuwait posted a 5.5bn dinar deficit for the 2015-2016 fiscal year, Al-Saleh said, below the government’s earlier estimate of 8.2bn. The government hired consulting firm Oliver Wyman & Co to advise on a debt strategy, the minister said in an interview in May.
Britain’s vote may cause “some delays in GCC international issuances,” Carla Slim, an economist for Standard Chartered in Dubai, said in an email. “We still see appetite for GCC bonds in general.”
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About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
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if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Don't get fined
The UAE FTA requires following to be kept:
- Records of all supplies and imports of goods and services
- All tax invoices and tax credit notes
- Alternative documents related to receiving goods or services
- All tax invoices and tax credit notes
- Alternative documents issued
- Records of goods and services that have been disposed of or used for matters not related to business
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The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
UAE SQUAD
UAE team
1. Chris Jones-Griffiths 2. Gio Fourie 3. Craig Nutt 4. Daniel Perry 5. Isaac Porter 6. Matt Mills 7. Hamish Anderson 8. Jaen Botes 9. Barry Dwyer 10. Luke Stevenson (captain) 11. Sean Carey 12. Andrew Powell 13. Saki Naisau 14. Thinus Steyn 15. Matt Richards
Replacements
16. Lukas Waddington 17. Murray Reason 18. Ahmed Moosa 19. Stephen Ferguson 20. Sean Stevens 21. Ed Armitage 22. Kini Natuna 23. Majid Al Balooshi
Abu Dhabi Equestrian Club race card
5pm: Abu Dhabi Fillies Classic (PA) Prestige; Dh110,000; 1,400m
5.30pm: Abu Dhabi Colts Classic (PA) Prestige; Dh110,000; 1,400m
6pm: Maiden (PA); Dh80,000; 1,600m
6.30pm: Abu Dhabi Championship (PA) Listed; Dh180,000; 1,600m
7pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 2,200m
7.30pm: Handicap (PA); Dh100,000; 2,400m
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BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
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MATCH INFO
Chelsea 0
Liverpool 2 (Mane 50', 54')
Red card: Andreas Christensen (Chelsea)
Man of the match: Sadio Mane (Liverpool)
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