GULF WEEKLY: Oman upgraded, rates cut, SABIC quits Duqm project, STC advances in Yemen

GULF COUNTRIES - Report 12 Dec 2025 by Justin Alexander

A skimmable summary overlaid with our analysis and links. Headlines:

* The GCC mirrored the US -25bp cut; policy rates now range from 3.5% (Kuwait) to 4.5% (Bahrain).
* Qatar, Saudi Arabia and Abu Dhabi are pitching in $24bn to Paramount’s bid for Warner Bros.
* Saudi non-oil GDP growth of 4.2% in Q3 was led by manufacturing, while finance slowed sharply.
* Alcohol retail sales in Saudi Arabia quietly expanded to non-Muslim expats earning over $160k/year.
* Fitch upgraded Saudi banks SNB and Al Rajhi due to a reassessment of their systemic importance.
* The IMF published the UAE Article IV and, separately, its annual GCC prospects and policies report.
* More hedge funds are opening offices in Abu Dhabi, including Man Group and Balyasny.
* Qatar is budgeting for a -3% of GDP deficit on an oil assumption of $55 and 5% spending growth.
* Qatar Airways unexpectedly replaced its CEO, after just two years, and without explanation.
* Qatar established an AI investment vehicle (QAI) and announced a JV with Brookfield.
* Fitch upgraded Oman to BBB-, in line with the other rating agencies, and also hiked banks by a notch.
* SABIC unexpectedly withdrew from the planned Duqm petchem project in Oman, with OQ and KPI.
* Bahrain’s Formula One team McLaren won the World Championships, with the final leg in Abu Dhabi.
* The UAE-backed STC continued its advance, taking control of most remaining areas of South Yemen.
* Databank updates: Qatar budget, Saudi GDP, Saudi manufacturing, Oil, Oman forecasts.

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