Category: Talking Point

Sharjah Islamic Bank and Warba Bank have spearheaded a flurry of USD‑denominated Additional Tier 1 sukuk issuances across the Gulf Cooperation Council, as institutions capitalise on narrower spreads, robust investor demand and abundant liquidity to bolster capital under Basel III norms. Sharjah Islamic priced a US$500 million perpetual issuance with a six‑year non‑call period at 6.125%, tightening from initial guidance of 6.5%, after books exceeded US$1 billion.Simultaneously, Kuwait’s Warba Bank concluded a US$250 million AT1 sukuk issuance, re‑offering at a 6.25% yield—also tightened from

Mergers and acquisitions across the Middle East are poised to slow as escalating global trade tensions erupted following the Trump administration’s imposition of reciprocal tariffs on 2 April. A sweeping 20 percent tariff on EU goods, 10 percent on UK imports and 25 percent on automobiles rattled markets and shook corporate confidence, triggering what dealmakers describe as a “major escalation” in international trade friction.A recent global survey conducted by Norton Rose Fulbright and Mergermarket, canvassing 200 senior M&A decision‑makers, indicates that 55 percent of

Saudi Arabia will export about 47 million barrels of crude to China in July, marking a modest decline of one million barrels compared with June allocations. Despite the slight reduction, this remains the third consecutive month of elevated shipments to the world’s largest crude importer, underscoring Riyadh’s resurgence in securing market share.This shift follows a decision by OPEC+—a coalition of the Organisation of the Petroleum Exporting Countries and key allies—to increase collective oil production by 411,000 barrels per day in

The debt burden across the Middle East and North Africa has escalated markedly over the last decade, with many governments relying heavily on borrowing to sustain public spending amid economic challenges. This growing fiscal strain, combined with an increasing dependence on external donor funding, has amplified the influence of foreign actors on both domestic policies and regional geopolitics, raising concerns about the long-term economic sovereignty of these states.State borrowing in the MENA region has expanded substantially due to a

The Central Bank of the UAE has levied a Dh3.5 million fine on an unnamed exchange house for breaches of anti-money laundering and counter-terrorism financing regulations. This action is part of a broader enforcement initiative targeting financial institutions failing to meet compliance standards.The penalty was imposed under Article 14 of Federal Decree Law No. of 2018, which governs AML/CFT measures in the UAE. An examination by the CBUAE revealed that the exchange house failed to implement adequate

OPEC+ is poised to consider a more substantial oil production increase for July than the previously agreed 411,000 barrels per day , according to sources familiar with the group's deliberations. The move reflects escalating internal tensions and strategic manoeuvring within the alliance.Eight member countries have been accelerating output beyond initial plans, a strategy reportedly orchestrated by Saudi Arabia and Russia to discipline non-compliant allies and reclaim market share. This approach has contributed to a decline in oil prices, which dipped

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund , is evaluating an initial public offering for its wholly-owned technology arm, Saudi Information Technology Company , as part of broader efforts to bolster the kingdom's economic diversification strategy.According to individuals familiar with the matter, PIF has approached investment banks to submit proposals for roles in a potential share sale of SITE. The discussions are in preliminary stages, with specifics such as the IPO's size and timeline yet to be

Saudi Aramco has secured $5 billion through a three-part bond sale, signalling its commitment to leveraging debt markets to sustain growth and maintain financial stability amidst declining oil revenues. The bond issuance, comprising five-, ten-, and thirty-year tranches, attracted strong investor interest, with spreads tightening significantly from initial guidance, reflecting confidence in the company's creditworthiness despite a challenging energy market landscape.The bond sale follows a 4.6% drop in Aramco's first-quarter net income, attributed to reduced sales and increased operating costs.

The US Marine Corps is advancing a comprehensive artificial intelligence strategy aimed at overhauling its operational, logistical, and decision-making frameworks. This initiative is designed to embed AI into the core of military functions, moving beyond isolated technological applications to a holistic transformation of processes and structures.A central element of this strategy is the deployment of Digital Transformation Teams across various commands. These cross-functional units are tasked with digitizing workflows, enhancing data pipelines, and identifying vulnerabilities to facilitate the

Dubai Holding has successfully raised AED 2.14 billion through the initial public offering of its Dubai Residential REIT, marking the largest real estate investment trust listing in the Gulf Cooperation Council to date. The offering, priced at AED 1.10 per unit, attracted substantial investor interest, with total demand exceeding AED 56 billion, leading to an oversubscription rate of 26 times.Originally set to offer 12.5% of the REIT's total issued unit capital, Dubai Holding increased the offering

Oil prices are on track for their first weekly decline in over a month, as Brent crude dipped below $64 per barrel and West Texas Intermediate slid under $61. The downturn, marking a fourth consecutive session of losses, is attributed to expectations of increased output from the Organisation of the Petroleum Exporting Countries and its allies , coupled with signs of a global supply surplus.Delegates within OPEC+ have discussed a potential production increase of 411,000 barrels per day for

Dubai Holding has increased the size of its Dubai Residential REIT initial public offering to 15% of the entity’s capital, up from the previously announced 12.5%, in response to robust investor interest. The offering now comprises 1.875 billion units, with the institutional tranche expanded to 1.7875 billion units, while the retail tranche remains unchanged.Based on the price range of AED 1.07 to AED 1.10 per unit, the IPO is expected to raise between AED 2.08 billion and AED

Abu Dhabi National Oil Company has granted contracts totaling Dh65.7 billion to nearly 400 local suppliers, contractors, and service providers during the first half of 2025. This extensive award reflects ADNOC’s ongoing commitment to strengthening the United Arab Emirates’ economy through its In-Country Value programme, which aims to bolster domestic industries and national supply chains.The contracts cover a diverse range of sectors vital to ADNOC’s operations, including drilling, logistics, operational support services, and engineering, procurement, and construction

Donald Trump concluded his Gulf tour with the White House touting more than $2 trillion in economic agreements, a figure that has drawn significant scepticism from financial analysts and diplomatic observers. The administration presented the headline number as a demonstration of strengthened U.S.-Gulf relations and expanded economic ties. However, a detailed examination of the announced agreements reveals a far lower total when measured against firm commitments.Official statements from the White House highlighted an ambitious total exceeding $2 trillion, combining trade

President Donald Trump's strategic tour across the Middle East has ignited internal discord within his administration, as China-focused officials express concern over expansive artificial intelligence agreements with Saudi Arabia and the United Arab Emirates . These deals, involving the acquisition of advanced semiconductors from U.S. firms Nvidia and Advanced Micro Devices , are perceived by some as potential threats to national security and economic interests.During his visits, Trump facilitated agreements for Saudi Arabia and the UAE to procure tens

U.S. President Donald Trump has announced plans to lift longstanding U.S. sanctions on Syria, in place since 1979 and intensified during the Syrian Civil War. During his Middle East tour, Trump revealed the decision at the U.S.-Saudi Investment Forum, describing the sanctions as historically significant yet now detrimental. The sanctions had frozen Syrian assets, banned petroleum imports, and isolated the country from the global economy. Critics highlight that repealing the sanctions, especially those under the Caesar Syria Civilian Protection Act

Oil prices surged over $2 per barrel in Asian trading on Monday, buoyed by a significant easing of trade tensions between the United States and China. Brent crude futures climbed $2.11, or 3.3%, to $64.14 a barrel, while US West Texas Intermediate crude futures rose $2.12, or 3.47%, to $63.14.The rally followed a joint announcement from Washington and Beijing declaring a 90-day suspension of additional tariffs, marking a notable de-escalation in their protracted trade dispute. The United States agreed

SAS has intensified its focus on ethical artificial intelligence by unveiling a suite of governance tools and strategic partnerships aimed at fostering responsible innovation across industries, with a particular emphasis on healthcare. At the SAS Innovate 2025 event in Orlando, the company highlighted its commitment to transparency, accountability, and trust in AI deployment.Reggie Townsend, Vice President of Data Ethics at SAS, underscored the importance of proactive governance in AI development. He introduced the concept of 'response-ability,' advocating for leaders

Opec+ has made significant moves in recent months, shifting from a neutral to a more aggressive stance. After a period of gradual production increases, the group, led by Saudi Arabia, has opted for a sharp rise in output, signalling a strategic push to regain market share. However, with key members such as Iraq and Kazakhstan failing to meet targets, the question remains: who will bear the brunt of this shift in policy, and how successful will Opec+ be in achieving

Abu Dhabi Investment Office has announced the expansion of its San Francisco office, aiming to bolster the emirate's economic clusters and facilitate global innovation, particularly in the healthcare sector. This move is part of a broader strategy to position Abu Dhabi as a central hub for health technology and related industries.The San Francisco office, situated in a region renowned for its advancements in health tech, biotech, and venture capital, will serve as a conduit for promoting Abu Dhabi's streamlined

Dubai Multi Commodities Centre has unveiled two new business licence categories designed to offer greater flexibility and efficiency for companies operating in the UAE. The newly introduced Special Purpose Vehicle and Holding Company licences are aimed at providing businesses with enhanced options for structuring investments, managing assets, and overseeing operations across the region.The initiative reflects DMCC's continued efforts to adapt to the evolving needs of the business community in a dynamic economic environment. These new licences enable companies

The Middle East and North Africa region is poised to experience indirect economic repercussions from the intensifying trade conflict between the United States and China, primarily through diminished global growth prospects and declining energy prices, rather than direct trade disruptions.Moody's Investors Service has highlighted that the exclusion of oil and gas from the latest US tariff measures mitigates immediate direct impacts on MENA economies. However, the broader consequences of the trade war, including weakened global demand and potential shifts

Saudi Arabia, the leading member of OPEC, has been pursuing an unconventional strategy in recent months, opting to lower oil prices in an effort to restore discipline within the group. The move marks a stark contrast to the traditional approach of pushing prices higher, a tactic long favoured by OPEC to maximise revenue. However, Riyadh’s shift in approach reflects the kingdom’s growing frustration with certain OPEC+ members, namely Kazakhstan, Iraq, and the UAE, who have been accused of failing to

DP World has successfully raised $1.5 billion via a 10-year green sukuk, priced at 145 basis points over U.S. Treasuries with a 5.5% coupon rate. The issuance attracted orders exceeding $3.3 billion, underscoring investor confidence in the company's financial health and sustainability initiatives.The sukuk, set to be issued on May 8, 2025, under Regulation S and Rule 144A, is facilitated through DP World Crescent Limited, a special purpose entity of DP World Limited. This issuance is part of DP