2021-08-25-牛津经济研究院-MENA_Saudi_oil_exports_GCC_travel_Kuwait_spending_cuts_4页_285kb

Summary of MENA Weekly Economic Briefing (26 August 2021)

Saudi Arabia reported a significant increase in economic activity, with oil exports surging 123% in June to SAR61.5bn, driven by higher output and oil prices. Non-oil exports rose by 41%, contributing to a reduction in the budget deficit. Travel restrictions were eased, lifting the ban on entry for expatriates from 20 countries and allowing vaccinated travelers to enter without quarantine.

GCC countries began relaxing travel bans, with Saudi Arabia permitting vaccinated individuals and expatriates from relevant nations like the UAE, UK, and US to transit or enter. Oman and Bahrain similarly lifted restrictions for fully vaccinated travelers. Kuwait announced plans to reopen all activities from September 1, but suspended sea transport, despite cabinet approval for flights. Ongoing budget challenges in Kuwait include a 10% spending cut for state entities amid a high deficit of KWD10.8bn or ~29% of GDP, following a credit rating downgrade.

Predicted events include OPEC+ meetings and potential inflation updates for the UAE and Kuwait. Overall, the MENA region shows mixed economic signals, with some countries recovering from pandemic impacts while facing fiscal constraints.