Gulf debt issuance will grow to US$45 billion this year, up from $40bn last year, estimates the ratings agency Standard and Poor’s.
The majority of new debt will come from Saudi Arabia, which will issue $31bn in new debt this year, S&P estimates. The country sold $27bn in local debt last year.
The collapse in oil earnings has opened up wide fiscal deficits in Saudi Arabia.
It ran a deficit of 15 per cent of GDP last year and is expected to run a deficit of 13 per cent this year.
Saudi Arabia initially made up for the shortfall by burning through $115bn of its foreign currency holdings last year. That led the country’s foreign exchange reserves to fall below $600bn in January, their lowest level since 2012.
The Gulf region enjoyed a decade of plenty as oil prices rose steadily between 2003 and 2014 – punctuated only by a steep fall and rapid recovery during the 2008 crisis.
But with oil prices now set to remain below $35 per barrel for longer, Gulf states have had to look to new sources of financing. Middle East oil exporters lost more than $360bn in foregone hydrocarbon revenues last year, the IMF estimates.
“It is not too much of a surprise that debt will rise given that oil is at $35 and most countries are running deficits now,” said Jason Tuvey, emerging markets economist at Capital Economics.
“Most of the Gulf states lowered their debt levels during the boom, which has given them the scope to raise debt now that oil prices are lower.”
Gulf states have very small debt piles by international standards. In 2014, Saudi Arabia’s debt-to-GDP ratio was the lowest in the world, according to IMF estimates.
The UAE is planning to issue its first federal bonds next year, after first passing a federal debt law later this year, according to Ministry of Finance officials.
Bahrain cancelled a $750 million bond sale last month after S&P downgraded its bonds to junk. It later reopened the sale at the lower value of $600m.
Gulf states’ sovereign wealth funds have been returning assets from abroad and are cutting public spending, in a bid to bring their budgets closer to balance. The UAE had cut spending by 21 per cent year-on-year, Ministry of Finance data shows.
The Gulf is also set to introduce a regional sales tax by January 1, 2019, at the latest, Humaid Obaid Al Tayer, the Minister of State for Financial Affairs, said last week. That followed a call by IMF officials and Christine Lagarde, the fund’s managing director, for the region to ready itself for taxes, as its era of plenty comes to an end.
Total government debt in the Middle East and North Africa is set to grow to $667bn by the end of this year, S&P says, a rise of 15 per cent compared with last year.
Egypt, which has struggled for years to rein in its budget deficits, is to issue $34bn in new debt next year, the ratings agency believes. That is a slight decline against last year’s $41bn.
Egypt ran a deficit of 11.8 per cent of GDP in the 2015 fiscal year and has an outstanding debt pile equivalent to 88 per cent of GDP, according to the ratings agency Capital Intelligence.
abouyamourn@thenational.ae
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
More coverage from the Future Forum
Confirmed%20bouts%20(more%20to%20be%20added)
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Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
The%20specs
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Leaderboard
63 - Mike Lorenzo-Vera (FRA)
64 - Rory McIlroy (NIR)
66 - Jon Rahm (ESP)
67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)
68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)
69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)
Company%20Profile
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The Bio
Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.
Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.
Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.
Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.
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Schedule:
Sept 15: Bangladesh v Sri Lanka (Dubai)
Sept 16: Pakistan v Qualifier (Dubai)
Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)
Sept 18: India v Qualifier (Dubai)
Sept 19: India v Pakistan (Dubai)
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
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SPECS
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TYPES%20OF%20ONLINE%20GIG%20WORK
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Company%20Profile
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COMPANY%20PROFILE
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World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Dubai Rugby Sevens
November 30, December 1-2
International Vets
Christina Noble Children’s Foundation fixtures
Thursday, November 30:
10.20am, Pitch 3, v 100 World Legends Project
1.20pm, Pitch 4, v Malta Marauders
Friday, December 1:
9am, Pitch 4, v SBA Pirates
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Meydan card
6.30pm: Al Maktoum Challenge Round-1 (PA) Group 1 US$65,000 (Dirt) 1,600m
7.05pm: Conditions (TB) $100,000 (Turf) 1,400m
7.40pm: UAE 2000 Guineas Trial (TB) $100,000 (D) 1,600m
8.15pm: Handicap (TB) $175,000 (T) 1,200m
8.50pm: Al Maktoum Challenge Round-1 (TB) Group 2 $350,000 (D) 1,600m
9.25pm: Handicap (TB) $175,000 (D) 1,900m
10pm: Handicap (TB) $135,000 (T) 1,600m
Destroyer
Director: Karyn Kusama
Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan
Rating: 3/5
UAE release: January 31
Company%20Profile
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UAE currency: the story behind the money in your pockets
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
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The 100 Best Novels in Translation
Boyd Tonkin, Galileo Press
MATCH INFO
World Cup qualifier
Thailand 2 (Dangda 26', Panya 51')
UAE 1 (Mabkhout 45 2')