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ETFGI reports assets invested in ETFs and ETPs listed in Middle East and Africa have increased 16.7% year to date as of the end of July
August 15, 2023--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem, reported today assets invested in ETFs and ETPs listed in Middle East and Africa have increased 16.7% year to date as of the end of July.
ETFs and ETPs listed in the Middle East and Africa gathered net inflows of US$713 million during July, bringing year-to-date net inflows to US$2.86 billion.
During the month, assets invested in the Middle East and Africa ETF/ETP industry increased by 6.1%, from US$37.97 billion at the end of June to US40.29 billion, according to ETFGI's July 2023 Middle East and Africa ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets of $40 Bn invested in ETFs and ETPs listed in the Middle East and Africa at end of July 2023.
Assets increased 16.7% YTD in 2023, going from $34.53 Bn at end of 2022 to $40.29 Bn.
Net inflows of $713 Mn invested during July.
YTD net inflows of $2.86 Mn in 2023 were the third highest on record, after YTD net inflows of $4.66 Bn in 2014 and YTD net inflows of $4.03 Bn in 2022.
6th month of consecutive net inflows.
UAE economy expands 3.8% in Q1 buoyed by non-oil sector
August 2, 2023--Economy Minister says GDP rose to $114bln on diversification push
The UAE's economy grew 3.8% on an annualised basis in Q1 2023 supported by its non-oil sector as the oil producer pursues a diversification strategy.
GDP in the three months to the end of March rose to 418.3 billion dirhams ($113.9 billion), adding AED15 billion from the same period last year, Abdulla bin Touq, Minister of Economy, said on Tuesday, quoting preliminary estimates from the Federal Centre for Competitiveness and Statistics.
Refiner Emirates Gold Is Working to Restore UAE Accreditation
July 17, 2023--Emirates Gold was removed from Good Delivery List of UAE
Suspension followed owners' alleged link to laundering
Refinery Emirates Gold DMCC said it's working to restore its accreditation in the United Arab Emirates following its suspension by authorities.
The precious metals refinery - which is among the biggest in the UAE- had its accreditation suspended by a government-chaired committee over concerns its owners had links to alleged money launders, Bloomberg reported on Friday.
Indxx Licenses US Airlines Top 10 Index to Migdal Mutual Funds Ltd. for an Index Tracking Fund
July 5, 2023--Indxx is pleased to announce the licensing of their Indxx US Airlines Top 10 Index to Migdal Mutual Funds Ltd. as the underlying benchmark for the MTF TR Indxx US Airlines Top 10 Currency Hedged (Tel Aviv: 5137104) which began trading today on the Tel Aviv Stock Exchange.
The Indxx US Airlines Top 10 Index is designed to track the performance of the top 10 airline companies in the United States.
Indxx defines airlines as companies involved in but not limited to transportation of goods, passengers and ticket booking facilities excluding aircraft manufacturing businesses. "Over the last few years, the aviation sector has witnessed a strong rebound in passenger air traffic, signaling a positive recovery from the COVID-19 pandemic's impact. The industry is now poised for significant additional growth due to the increasing demand for both passenger and freight services. A recent study by the Bureau of Transportation Statistics (BTS) highlights a substantial surge in air travel, with US airlines transporting 674 million passengers in 2021, reflecting an impressive 82.5% surge compared to the previous year.
Saudi Arabia's GDP growth set to slow to 2.4% this year due to lower oil production
June 27, 2023--However, non-oil growth will remain robust at 4.7%, says IIF
Saudi Arabia's overall GDP growth is expected to slow from 8.9% in 2022 to 2.4% in 2023, dragged down by an expected 3% decline in average oil production due to the impact of OPEC+ sponsored cuts to the kingdom's production targets, according to a report by the Institute of International Finance.
"However, we expect non-oil growth to remain robust at 4.7% in 2023," said Garbis Iradian, the IIF's chief economist for the MENA region.
The ongoing de-escalation of tensions in the region, following China's brokered rapprochement between Saudi Arabia and Iran, could encourage additional domestic and foreign investment, raising potential growth beyond the short term, he added.
IMF-United Arab Emirates: 2022 Article IV Consultation-Press Release; and Staff Report
June 26, 2023--Summary:
Economic growth is strong, driven by non-hydrocarbon activity, timely support measures, and the benefits of earlier reforms. Inflation has risen with global trends, while high oil prices support large surpluses in the fiscal and external balances.
Banks are adequately capitalized overall, but nonperforming loans remain elevated, albeit down from recent peaks, and real estate prices have risen sharply in some segments. Long-term vulnerabilities from global decarbonization efforts are being addressed through commitments to climate initiatives and a balanced approach to energy transition.
World Bank-MENA Macro Monitor
June 22, 2023--Exchange Rates and Central Bank FX Reserves.
Since the onset of the war in Ukraine, some MENA countries (especially the oil importers) have seen pressure on their exchange rates and FX reserves. Of the MENA countries without a pegged-like exchange rate regime, Lebanon, Egypt, Morocco, and Tunisia have
witnessed substantial declines in the value of their currencies vis-à-vis the dollar and the euro.
For Lebanon, the repercussions of the Ukraine war exacerbated an already dire situation, while, for Egypt, the large outflow of portfolio investments in the spring of 2022 was a main driver of the close to 50% deprecation of Egyptian pound against the dollar since January 2022. The Morocco dirham and Tunisian dinar, by contrast, track the euro more closely than the dollar, as the European Union is their main trading partner. Hence, despite depreciating by around 7% against the dollar since the start of the war in Ukraine, more than half of this change is due to the strengthening of the dollar vis-à-vis the euro, as the Morocco
dirham and Tunisian dinar have depreciated by less than 3% compared to euro. For Tunisia, this is surprising given concerns over its ability to secure foreign financing, leading to downgrades by rating agencies to default or close-to-default status.
IMF Country Report-Israel: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Israel
June 15, 2023--Summary:
Following a remarkable recovery from the pandemic anchored in strong fundamentals, the outlook is for growth to slow broadly in line with potential, as inflation falls within the targeted range by end-2024.
However, the risk balance is tilted to the downside, reflecting, among other things, external risks and the continued uncertainty around the proposed judicial reform.
IMF-Managing Fiscal Risks in the Middle East and North Africa
June 11, 2023--Summary:
Countries in the Middle East and North Africa are exposed to significant fiscal risks. This paper analyzes the sources of these fiscal risks in 17 low- and middle-income countries in the Middle East, North Africa and Pakistan region, excluding high-income Gulf countries (MENAPEG), and discusses avenues for reform to strengthen fiscal risk management.
The materialization of fiscal risks in MENAPEG has been driven by macroeconomic shocks, contingent liabilities, and tail-risk events. The region has a track record of volatile economic growth and sharp exchange rate movements. High dependence on hydrocarbon revenue among MENAPEG oil and gas exporters and pervasive universal subsidies generate considerable budgetary exposure to swings in commodity prices. Substantial government involvement in the economy and large state ownership of firms and banks exposes several MENAPEG countries to contingent liabilities from state-owned enterprises and the financial sector. Lastly, the region's history of social unrest and conflicts together with tail-risk events such as the recent COVID-19 pandemic, and natural disasters and climate change, have been important sources of fiscal risks.
Many of the factors historically associated with the materialization of fiscal risks in MENAPEG countries are likely to remain sources of vulnerability in the future, raising the need for robust fiscal risk management frameworks. Policy reform can strengthen fiscal risk management in MENAPEG. This paper describes precedents where progress is made and provides a broad analytical framework for policymakers to build upon to fully embrace fiscal risk management in all its dimensions. Going forward, it is crucial for national authorities to enhance their capacity to identify, quantify, and assess risk factors and their budget's exposure to them. This should be followed by thorough fiscal risk analysis to inform policy decisions to mitigate risks. Where risks cannot be mitigated or are judged to be acceptable, countries should consider adopting appropriate medium-term fiscal frameworks to build buffers to deal with them.
GCC Economic Growth Expected to Slow to 2.5% in 2023
May 17, 2023--Non-communicable diseases pose a growing threat to public health and economic performance in the GCC, new World Bank report says
The economies of the Gulf Cooperation Council (GCC) are projected to grow at a slower pace in 2023 compared to the previous year, in the face of lower oil and gas earnings and a global economic slowdown, according to the new World Bank Gulf Economic Update (GEU).
The GCC is expected to grow by 2.5% in 2023 and 3.2% in 2024. This compares to the region's remarkable GDP growth of 7.3% in 2022, which was fueled by a strong increase in oil production for most of that year.
The weaker performance is driven primarily by lower hydrocarbon GDP, which is expected to contract by 1.3% in 2023 after the OPEC+ April 2023 production cut announcement and the global economic slowdown.