Saudi gets a partial brand detox with Qatar thaw 6 Jan 2021 Ending Riyadh’s three-year embargo with Doha gives both states a minor economic boost. It also removes one of U.S. President-elect Joe Biden’s Saudi-related headaches. But its main benefit could be to reduce the extent to which foreign investors see the kingdom as kryptonite.
Cox: Saudenfreude over Khashoggi absent from Doha 25 Oct 2018 As Mohammed bin Salman’s blockade of Qatar nears the year and a half mark, it would be easy for the tiny-but-rich Gulf state to gloat over the kingdom’s woes. But chaos across the border is a big worry. A quiet high road is paying off for Qatar. Even MbS seems to agree.
Bond markets start to call Saudi bluff on Bahrain 26 Jun 2018 The tiny Gulf kingdom’s bond yields are spiking. Bahrain’s borrowing and dependence on a high oil price make its debt hard to sustain. But Saudi Arabia has no interest in its neighbour devaluing or falling apart. The more markets push, the more likely Riyadh is to step in.
Cox: Qatar kerfuffle could tip Aramco to New York 15 Aug 2017 As the Saudi oil leviathan considers where to IPO, its skirmish alongside regional allies with its Gulf neighbor may play a role. Abu Dhabi punished banks in which Qatar is a big investor. For the LSE, Qatari capital may now be a source of anxiety rather than stability.
Saudi oil cut would be a hit-and-hope strategy 24 Jul 2017 The kingdom’s pact with OPEC to damp output is crumbling and has failed to drain inventories, or boost prices, fast enough. One suggestion is to reduce its own exports by as much as a seventh to shock markets into submission. If that fails, though, Saudi would look impotent.
Qatar standoff spells end of Gulf cooperation 3 Jul 2017 Saudi Arabia has granted the sheikhdom two more days to comply with its demands. Failure to reach a deal could escalate the dispute, hitting regional economies and investors in equal measure. But even if both sides back down, plans for greater economic collaboration are on hold.
Oil markets too calm over Qatar ultimatum 23 Jun 2017 Doha’s Gulf neighbours have imposed a 10-day deadline to comply with demands including reparations, closing Al Jazeera and regular inspections. Markets have assumed the standoff won’t turn violent and impact oil supply from the region. That assumption is looking less secure.
Qatar quarrel shows limit of its sovereign wealth 6 Jun 2017 The emirate’s $300 bln-plus fund has snapped up landmark buildings and stakes in companies like Barclays and Rosneft. The spree was meant to generate returns and diplomatic clout. But Qatar’s largesse has produced few allies to help it face down its more powerful neighbours.
Kuwait’s strength could be a weakness 17 Jan 2017 The oil-rich sheikhdom is planning its first dollar debt sale. It should be a hit: Kuwait has a good fiscal record and vast foreign assets. Yet other Gulf states are weaker, raising the risk of devaluations or euro zone-style bailouts. The strongest may end up bearing the burden.
Bahrain tips Middle East’s delicate balance 21 Jun 2016 Stripping citizenship from the spiritual leader of its majority Muslim Shi’ite population will inflame ethnic tensions in the tiny archipelago that’s home to the U.S. Fifth Fleet. The real story is the tension between its neighbours, Iran and Saudi. Bahrain has become a troubling proxy.
Target shortage feeds desperate Mideast telco M&A 26 Mar 2013 Bahrain’s incumbent telco is eyeing a stake in part of India’s Reliance after agreeing to buy assets from Cable & Wireless. Stiff competition at home is forcing tiny Batelco further afield. The snag is that there are too many big telcos in the region chasing too few assets.
CWC extracts royal premium from Batelco 3 Dec 2012 Bahrain’s top telco will pay $1 bln, or roughly one third more than the market expected, for the UK firm’s Monaco and Island unit. The deal will transform both buyer and seller but the rich price stretches the business logic for Batelco’s big international leap.
Oil price band of comfort is precariously narrow 10 May 2012 It only takes a $20-a-barrel swing to move markets from fretting about the release of emergency reserves to worrying about top producers falling into fiscal deficits. Hard-to-cut higher spending by a growing number of big exporters may make the concerns permanent.
Saudis wouldn’t gain much from a union with Bahrain 1 May 2012 The house of Saud’s call for Gulf states to move beyond cooperation and combine into a single entity lays the ground for forming a union with the troubled island. Yet Saudi already bankrolls Bahrain and underwrites its security. The benefits of further integration are dubious.
Formula One has much to lose in Bahrain race 20 Apr 2012 Holding the car race on the tiny island still reeling in its Arab uprising isn’t worth the controversy. The Grand Prix already has another foot firmly in the lucrative Gulf market. Sponsors are resilient to a point but the Bahrain race could yet test those limits.
Hedge funds show banks how to recoup loans to Gulf 19 Mar 2012 Bahraini investment house Arcapita has been forced to file for U.S. bankruptcy protection after pressure from non-bank creditors – a first in the region. That won’t end “extend and pretend” debt deals, but it may deliver one of the Gulf’s first effective restructurings.
Oil price jitters turn up heat on Gulf producers 22 Sep 2011 Governments are sweating as Brent creeps lower with worsening global economics. At $108 a barrel, oil is $18 above the threshold at which producers feel real pain. But shrinking oil revenues leave less room for manoeuvre. And any OPEC supply squeeze will complicate the problem.