IFP Info - News
  • Agrofood
    • All
    • Agriculture
    • Environment
    • Food
    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Arab states imported 1.73 million agricultural commodities from Egypt

    Arab states imported 1.73 million agricultural commodities from Egypt

    Wheat yield boom boosts Oman’s food security

    Wheat yield boom boosts Oman’s food security

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Trending Tags

    • Business & Economy
      • All
      • Business
      • Economy
      • Finance
      • Industry
      • Technology
      • Trade
      • Transport & Logistics
      Saudi: 53 new industrial licenses issued in April 2023

      Saudi: 53 new industrial licenses issued in April 2023

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Saudi transport authority approves 15 licensing, technical guides for railways

      Saudi transport authority approves 15 licensing, technical guides for railways

      Number of industrial decisions up by 10.56% to 356 in 2021

      Number of industrial decisions up by 10.56% to 356 in 2021

      Egypt’s macroeconomic conditions improving, says minister

      Egypt’s macroeconomic conditions improving, says minister

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Trending Tags

      • CES 2017
      • Election Results
      • eSports
    • Construction
      • All
      • Infrastructure
      • Real Estate
      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Oman releases more Sultan Haitham City details

      Oman releases more Sultan Haitham City details

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Oman gears up for its first smart city

      Oman gears up for its first smart city

      Saudi real estate ‘booming’ on big office space demand

      Saudi real estate ‘booming’ on big office space demand

      Trending Tags

      • Energy
        • All
        • Oil & Gas
        • Power & Electricity
        • Renewable Energy
        NEOM’s green hydrogen project is formally under execution: ACWA Power

        NEOM’s green hydrogen project is formally under execution: ACWA Power

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Total-led consortium to start drilling offshore Lebanon in September

        Total-led consortium to start drilling offshore Lebanon in September

        Trending Tags

        • Hospitality
          Qatar: Over 700 hotel keys added in Q1

          Qatar: Over 700 hotel keys added in Q1

          Jordan’s tourism income surges 88% as visitors flock to the country

          Jordan’s tourism income surges 88% as visitors flock to the country

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Leisure sector in Qatar stronger after World Cup 2022

          Leisure sector in Qatar stronger after World Cup 2022

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

        • IFP Events
          • Event News
          • Upcoming Events
        No Result
        View All Result
        • Agrofood
          • All
          • Agriculture
          • Environment
          • Food
          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Arab states imported 1.73 million agricultural commodities from Egypt

          Arab states imported 1.73 million agricultural commodities from Egypt

          Wheat yield boom boosts Oman’s food security

          Wheat yield boom boosts Oman’s food security

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics
            Saudi: 53 new industrial licenses issued in April 2023

            Saudi: 53 new industrial licenses issued in April 2023

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Saudi transport authority approves 15 licensing, technical guides for railways

            Saudi transport authority approves 15 licensing, technical guides for railways

            Number of industrial decisions up by 10.56% to 356 in 2021

            Number of industrial decisions up by 10.56% to 356 in 2021

            Egypt’s macroeconomic conditions improving, says minister

            Egypt’s macroeconomic conditions improving, says minister

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Oman releases more Sultan Haitham City details

            Oman releases more Sultan Haitham City details

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Oman gears up for its first smart city

            Oman gears up for its first smart city

            Saudi real estate ‘booming’ on big office space demand

            Saudi real estate ‘booming’ on big office space demand

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              NEOM’s green hydrogen project is formally under execution: ACWA Power

              NEOM’s green hydrogen project is formally under execution: ACWA Power

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Total-led consortium to start drilling offshore Lebanon in September

              Total-led consortium to start drilling offshore Lebanon in September

              Trending Tags

              • Hospitality
                Qatar: Over 700 hotel keys added in Q1

                Qatar: Over 700 hotel keys added in Q1

                Jordan’s tourism income surges 88% as visitors flock to the country

                Jordan’s tourism income surges 88% as visitors flock to the country

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Leisure sector in Qatar stronger after World Cup 2022

                Leisure sector in Qatar stronger after World Cup 2022

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

              • IFP Events
                • Event News
                • Upcoming Events
              No Result
              View All Result
              IFP Info - News
              No Result
              View All Result

              Abu Dhabi sees tighter liquidity conditions

              OBG

              May 17, 2016
              in Finance
              0
              Share on FacebookShare on Twitter

              As with the rest of the banking sector across the GCC region, Abu Dhabi’s financial institutions are seeing liquidity conditions tighten as part of the fallout from weaker energy revenues.

              Loan growth in the emirate is projected to slow this year as a result, coupled with an increase in borrowing costs.

              Energy squeeze
              With public revenues down, governments in the region are increasingly looking to bridge the fiscal gap by tapping deposits and expanding domestic borrowing, a recent report by Abu Dhabi Commercial Bank (ADCB) noted.
                           
              “Domestic funding will remain important for covering the GCC’s fiscal deficit in 2016,” Monica Malik, chief economist at ADCB, told media in April, citing expected drawdowns of government deposits and increased borrowing from banks across the region.

              According to the most recent data from the Central Bank of the UAE (CBU), government deposits were down 13.9% year-on-year (y-o-y) in February at Dh158.3bn ($43.1bn). Combined government and public sector deposits, meanwhile, had fallen by 5% to Dh343bn ($93.4bn).

              “Lower oil revenues are driving tightening of liquidity in the GCC, with overall deposit growth slowing down significantly to around 3% in 2015 from around 10% in 2014,” Nitish Bhojnagarwala, assistant vice-president at Moody’s, told media last month.

              Although this has been partly offset by private sector deposits, domestic and government credit demand has also risen, up 8.1% y-o-y in February, while demand from government-related enterprises (GREs) climbed by 5.5%.

              Liquidity crunch
              Bank liquidity has tightened as a result, particularly in Abu Dhabi, where the local government is a dominant depositor in the financial system.

              The UAE-wide loan-to-deposit ratio – a key measure of banking liquidity – climbed from 87% in June 2014 to 100.9% the end of last year, according to figures from the CBU and the National Bank of Abu Dhabi (NBAD).

              This is already having an effect on other segments of the economy, which are finding it more difficult to get access to affordable credit.

              In the real estate sector, project completions in Abu Dhabi reached a 10-year low in the first quarter, due in part to tighter liquidity and reduced state spending, property consultancy JLL noted.

              Banks’ margins have also felt a squeeze. NBAD, for example, which is one of the principle lenders to the Abu Dhabi government, saw its net profits dip by 11% y-o-y in the first quarter of 2016, following on a 6% contraction last year. ADCB, meanwhile, recorded an 18.4% y-o-y decline in net profits in the first quarter.

              Speaking to media in January, Alex Thursby, group CEO of NBAD, said tighter domestic liquidity conditions have prompted the bank to look beyond conventional lending to generate additional revenue.

              NBAD has sought to tap its international operations and capital markets, as well as its domestic mortgage segment, to supplement earnings.
               
              On notice
              In early March ratings agency Moody’s said it had put Abu Dhabi’s “Aa2” government bond and issuer ratings on review for downgrade, citing a weaker Abu Dhabi government balance sheet due to falling energy revenues. The review is expected to be completed in mid-2016.

              However, plans to reduce public expenditure and broaden the tax base could mitigate the impact on its credit standing, Moody’s said.

              With the agency also citing stress on the banking sector as a credit negative, plans by the Abu Dhabi government to tap international bond markets this year to fund a wider budget deficit could provide some welcome breathing room.

              The emirate’s deficit is projected to increased by 13.9% this year to Dh36.9bn ($10bn), media reported in late April.

              Abu Dhabi plans to cover the gap mainly through bond issuances, with a benchmark-sized international issue expected later this year – the emirate’s first offer in seven years.

              “Despite the drop in crude prices [and] the collapse of the latest oil talks, Abu Dhabi’s new bond issue should manage an attractive price that will set the stage for other GREs to follow,” Apostolos Bantis, a credit analyst at Commerzbank, told media last month.

              While commercial banks could come under continued pressure from falling government deposits this year, the banking system remains resilient and is well placed to weather any negative external shocks, according to Mubarak Rashed Al Mansoori, governor of the CBU.

              “Critical statistics demonstrate that banks operating in the UAE are maintaining high capitalization, stable funding and sufficient liquidity,” he told OBG earlier this year.
              Oxford Business Group
              17 May

              Previous Post

              Exhibitors praise the first Mac Fruit Attraction edition in Cairo

              Next Post

              UAE and Morocco lead ‘smart’ MENA activities

              Next Post

              UAE and Morocco lead ‘smart’ MENA activities

              News Letter

              Subscribe to our mailing list to receive daily updates direct to your inbox!

              *we hate spam as much as you do

              Filter By Country

              IFP Info – News

              The resource of credible, industry-specific updates

              Categories

              • Agrofood
              • Business & Economy
              • Construction
              • Energy
              • Event News
              • Hospitality
              • Interviews

              Countries

              • Bahrain
              • Egypt
              • Iran
              • Iraq
              • Jordan
              • Kingdom of Saudi Arabia
              • Kuwait
              • Lebanon
              • Oman
              • Other Africa
              • Other GCC
              • Other Middle East
              • Qatar
              • Syria
              • United Arab Emirates
              • Worldwide

              Newsletter

              Subscribe to our mailing list to receive daily updates direct to your inbox!

              *we hate spam as much as you do

              • About
              • Advertise
              • Privacy & Policy
              • Contact

              © 2023 IFP Group - All Rights Reserved / www.ifpexpo.com

              No Result
              View All Result
              • Agrofood
              • Business & Economy
              • Construction
              • Energy
              • Hospitality
              • IFP Events
                • Event News
                • Upcoming Events

              © 2023 IFP Group - All Rights Reserved / www.ifpexpo.com