GULF WEEKLY: Oil spikes with US strikes, PMIs jump in UAE and Kuwait, Kuwait to borrow from Reserve Fund
A skimmable summary overlaid with our analysis and links. Headlines:
* The war heated up, with the first US strikes in a month and Iranian retaliation against Jordan and the GCC.
* Trump and Vance insisted the US is in no hurry to negotiate, despite the looming midterms.
* Oil surged back to $96, the highest since July, as Iran struck three more tankers.
* The UAE’s PMI rose to the highest since 2024; Kuwait and Saudi Arabia rose, but Qatar declined.
* Saudi Arabia issued $3.25bn in 5- and 10-year sukuk, its first external debt securities during the war.
* Saudi public deposits at SAMA dropped by 14% m/m to the lowest since 2007.
* The LEAP tech summit in Riyadh saw many announcements on data center plans and AI deals.
* The US threatened to restrict transactions with Banque Misr UAE over alleged links to Iran.
* The first EVs were manufactured in a UAE facility by China’s Rox Motors, with 20k planned in 2027.
* Qatar’s GDP contracted by -7% y/y in Q1, the weakest in the GCC, but non-oil was 2nd highest at 3.5%.
* Kuwait passed a law permitting public borrowing from the Reserve Fund for Future Generations.
* Oman received separate visits from Qatari and Saudi ministers to discuss partnerships in logistics.
* Bahrain revised down its Q1 GDP to a -4.4% y/y contraction, from -3.8% previously reported.
* Databank updates: Qatar, UAE and Bahrain GDP; Saudi forecasts; PMIs.
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