Wednesday, October 17, 2018
Directory Directory Subscribe
Login
 

Bahrain progresses with talks on Gulf economic program

 
 

Please, enter data

Please, enter data

The National, 10 August 2018

Bahrain and its Gulf allies are said to be making progress on an economic programme to help the island-kingdom repair its finances and avoid a devaluation that could roil neighbouring markets.
 
Officials from Bahrain, Saudi Arabia, the UAE and Kuwait are discussing a multi-year programme that would involve spending cuts and measures to increase non-oil revenue, including the introduction of a value-added tax, according to five people with knowledge of the matter. They asked not to be identified because the details aren’t public.
 
The Arab Monetary Fund, an organisation modelled on the Washington-based International Monetary Fund, has been involved in the discussions, some of the people said. The fund, based in Abu Dhabi, may also help to monitor the programme’s implementation.
 
Bahrain’s economy is the smallest among the six members of the oil-rich Gulf Cooperation Council. But investors fear that without aid to help bolster low foreign-exchange reserves and cut ballooning debt, the tiny kingdom will be forced to abandon the dinar peg to the dollar, triggering speculation that its neighbours would follow suit. Bahrain officials have repeatedly said they have enough reserves to maintain the peg.
 
Bahrain’s dollar-denominated Eurobonds reversed declines after the report, with the yield on securities due 2028 falling by two basis points to 8.11 per cent, according to data compiled by Bloomberg.
 
The kingdom and its allies announced in June they were in talks over stimulus, giving the country’s assets a much-needed boost. The nation’s bonds were the hardest hit in the Gulf this year as investors worried that the implicit support Bahrain has from Saudi Arabia, Kuwait and the UAE wouldn’t materialise.
 
But the rally fizzled out this month as investors look for details of the aid package.
 
“This is significant because the presumption was increasingly that complacency was setting in, and a likelihood that Bahrain was playing with brinksmanship,” said Richard Segal, senior analyst at Manulife Asset Management in London. "This could be an impetus for further rallies, which had tended to stall, and would be justified both by the committed liquidity from the GCC but also better fundamentals in the future."
 

The National
10/08/2018
 
 
  COMMENTS
Login to Add Your Comment  (for subscribers) | Subscribe

 

Latest News

Russian and Egyptian presidents meet to boost trade
Arab News, 17 October 2018

Russian President Vladimir Putin is hosting his Egyptian counterpart Abdel-Fattah El-Sisi for talks focusing on ways to boost trade between the two nations.
...

Read full story
Russian and Egyptian presidents meet to boost trade
Dubai Route 2020 station bridges work on track
TradeArabia News Service, 16 October 2018

Dubai officials said all the bridge works related to the Route 2020 network will be completed by the end of next month.

The new route covers the ...

Read full story
Dubai Route 2020 station bridges work on track
Egypt reaches $3bn financing deal with World Bank
Xinhua , 16 October 2018

The World Bank (WB) has agreed on a new financing deal of three billion U.S. dollars with Egypt, Egyptian Investment Ministry said in a statement on Tuesday.
...

Read full story
Egypt reaches $3bn financing deal with World Bank
Qatar’s trade volume with Germany and Italy at QR18.97bn
The Peninsula, 16 October 2018

Qatar’s economic and trade cooperation with Germany and Italy is expected to witness a major boost in the coming years. All the stakeholders, including top ...

Read full story
Qatar’s trade volume with Germany and Italy at QR18.97bn
Back to Home Page 2687 --- 0 <><><> 439.83333333333.....exvideo=0....eximage=0
P -1
BR 2

 
KSA Manufacturing Tech Show
22 - October 2018
3rd Annual Future Police Technology and Forensics Summit GCC 2018
12 - November 2018
3rd Annual RetrofitTech KSA
18 - November 2018
3rd Annual Mosque Design & Development Summit
26 - November 2018
3rd Annual Dubai Green Hotel Innovation
26 - November 2018
 
  View more  

Market Indecies
 
Saudi SE - 2.32%
Dubai FM - 4.53%
Abu Dhabi SE - 3.99%
Kuwait SE - 1.51%
Doha SM - 8.36%
Muscat SM - 6.18%
Casablanca SE Closed
Bahrain SE - 0.98%
Cairo SE Closed
Amman SE - 1.12%
 

Quick Links
  Reports  
  Articles  
  Brochures & Flyers  

Up-coming events
  Hospitality Qatar - 6 November - 8 November 2018  
  HQ - Food Qatar - 6 November - 8 November 2018  
  Sustainable Digital Ecosystem Summit - 4 December - 6 December 2018  
  Food Africa Cairo - 8 December - 10 December 2018  
  Mac Fruit Attraction - 8 December - 10 December 2018  
  Project Qatar - 29 April - 1 May 2019  
  Heavy Max - 29 April - 1 May 2019  
  Qatar Stone Tech - 29 April - 1 May 2019  
IFP Group Events Calendar

Magazine sections
  Finance  
  Zoom  
  Growth Markets  
  Regional Overview  
  Editorial  
  Tips and Tricks  
  Spotlight  
  Home Finance  
  Our Meetings
 
  Focus
 
  News
 
  Legal Issues
 

 

               
IFP Corporate
• IFP Emirates
• IFP Lebanon
• IFP Qatar
• IFP Iraq
• REC Saudi Arabia
• IFP China
Lebanon
Beirut Boat
Energy Lebanon
Project Lebanon
Sustainable Digital Ecosystem Summit
Qatar
Heavy Max
Hospitality Qatar
HQ - Food Qatar
Project Qatar
Qatar Stone Tech
Iraq
Saudi Arabia
Riyadh Motor Show
 
 
  IMC
IFP Group 2018 - © All rights reserved