GULF WEEKLY: Strong sukuk demand, Covid up in Oman & Kuwait, Kuwait sees worst GDP contraction
A skimmable summary overlaid with our analysis and links. Headlines:
* Coronavirus is surging in Oman and Kuwait and, although cases are falling in Bahrain, deaths are extremely high.
* US-Iran talks will move to a sixth round, with growing expectations for a deal but probably not before next week’s election.
* A bonanza week for sukuk: Aramco $6bn, Oman $1.75bn, Ahli United $600m. EDB also issued a $750m bond.
* Saudi Arabia’s initial rating scorecard weakened in Moody’s scheduled update, though not the final assessment.
* Saudi has ceased attacks on Yemeni cities to prepare for peace, and Oman has stepped up mediation efforts.
* Damac could be the third listed Dubai developer to go private again, at a price well below its original IPO.
* Qatar’s population rebounded by 1.5% m/m in May, the most since the start of Covid, but remains down -4.3% y/y.
* Kuwait’s real GDP contracted by -8.9% y/y in 2020, the worst in the Gulf, due to the lack of gas and weak manufacturing and construction.
* Kuwait’s government continued to boycott the National Assembly, holding up the budget and debt law.
* Total has further delayed making a final decision on whether to invest in an Omani LNG bunkering terminal.
* An imprisoned Bahraini Shia activist died of Covid, prompting a demonstration branding him a martyr.
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