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    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt secures $66 mln from EU, AFD to expand wheat storage

    Egypt secures $66 mln from EU, AFD to expand wheat storage

    Agreements signed to establish 4 food factories in Jordan

    Agreements signed to establish 4 food factories in Jordan

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    Morocco set to launch potash project: report

    Food Africa and pacprocess MEA to launch in December with an even larger area

    Food Africa and pacprocess MEA to launch in December with an even larger area

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

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      Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

      Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

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      International investors keen on entering Saudi market, says minister

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      Egypt aims to enhance contribution of IT sector to GDP: Talaat

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      Saudi airports witness 42% rise in passengers in first 4 months of 2023

      Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

      Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

      Egypt starts implementation of silicon production project in New Alamein

      Egypt starts implementation of silicon production project in New Alamein

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      Oman gears up for its first smart city

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      Saudi real estate ‘booming’ on big office space demand

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      Value of Saudi construction contracts jump 35% to $51.3bn: report

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      Qatar to implement new strategies for real estate development

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      Real Estate Development Fund deposits $248m in Sakani accounts to boost Saudi housing goals

      Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

      Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

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

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

        Egypt invests $64mln in electricity network development in South Sinai since July 2014

        Egypt invests $64mln in electricity network development in South Sinai since July 2014

        First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

        First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

        Oman’s refinery products output jumps by 44%

        Oman’s refinery products output jumps by 44%

        Iraq agrees to 30% stake in TotalEnergies $27bln energy project

        Iraq agrees to 30% stake in TotalEnergies $27bln energy project

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        Oman signs $20bn hydrogen deals

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          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

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          Leisure sector in Qatar stronger after World Cup 2022

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          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

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        • Agrofood
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          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt secures $66 mln from EU, AFD to expand wheat storage

          Egypt secures $66 mln from EU, AFD to expand wheat storage

          Agreements signed to establish 4 food factories in Jordan

          Agreements signed to establish 4 food factories in Jordan

          Morocco set to launch potash project: report

          Morocco set to launch potash project: report

          Food Africa and pacprocess MEA to launch in December with an even larger area

          Food Africa and pacprocess MEA to launch in December with an even larger area

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Trending Tags

          • Business & Economy
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            • Business
            • Economy
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            Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

            Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

            International investors keen on entering Saudi market, says minister

            International investors keen on entering Saudi market, says minister

            Egypt aims to enhance contribution of IT sector to GDP: Talaat

            Egypt aims to enhance contribution of IT sector to GDP: Talaat

            Saudi airports witness 42% rise in passengers in first 4 months of 2023

            Saudi airports witness 42% rise in passengers in first 4 months of 2023

            Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

            Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

            Egypt starts implementation of silicon production project in New Alamein

            Egypt starts implementation of silicon production project in New Alamein

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
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            • Real Estate
            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

            Value of Saudi construction contracts jump 35% to $51.3bn: report

            Value of Saudi construction contracts jump 35% to $51.3bn: report

            Qatar to implement new strategies for real estate development

            Qatar to implement new strategies for real estate development

            Real Estate Development Fund deposits $248m in Sakani accounts to boost Saudi housing goals

            Real Estate Development Fund deposits $248m in Sakani accounts to boost Saudi housing goals

            Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

            Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
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              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

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

              Egypt invests $64mln in electricity network development in South Sinai since July 2014

              Egypt invests $64mln in electricity network development in South Sinai since July 2014

              First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

              First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

              Oman’s refinery products output jumps by 44%

              Oman’s refinery products output jumps by 44%

              Iraq agrees to 30% stake in TotalEnergies $27bln energy project

              Iraq agrees to 30% stake in TotalEnergies $27bln energy project

              Oman signs $20bn hydrogen deals

              Oman signs $20bn hydrogen deals

              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

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              Oman returns to international bond markets

              OBG

              July 27, 2016
              in Finance
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              A return to the international bond market, combined with fiscal reforms and an increase in oil prices, is bolstering government efforts to bridge Oman’s budget deficit.

              After an absence of almost 20 years, Oman tapped the international bond market in June to raise $2.5bn in two separate tranches.

              The government has said the money raised will be used to address a funding shortfall in the budget caused by the fall in energy revenues.

              This year’s deficit is projected to be OR3.3bn ($8.6bn), well down on the OR4.5bn ($11.7bn) revenue gap recorded in 2015.

              Investor uptake
              Interest in the bonds was strong, attracting more than $6bn worth of subscriptions, with applications coming from more than 520 investors.

              The $1bn bond, which matures in 2021, has a nominal interest rate of 3.625%, while the $1.5bn tranche, which has a maturity date of 2026, was sold at a rate of 4.75%.

              In mid-June Moody’s assigned a definitive “Baa1” rating with a stable outlook to the issue, saying that while government debt could reach as high as 33% of GDP by next year, Oman’s financial buffers were sufficient to provide support through the process of fiscal and external adjustment. The rating for the bond was in line with Moody’s position on Oman’s broader credit rating.

              Oman’s long-term government bond and issuer rating is supported by high levels of wealth, fiscal space offered by relatively low levels of general government debt and still sizeable government financial assets, the ratings agency said.

              This came after a downgrade in May. Citing concerns over the effect an extended period of weakened energy prices could have on Oman’s sovereign credit profile, Moody’s lowered the sultanate’s long-term government issuer rating from “A3” to “Baa1” with a stable outlook.

              Private sector to benefit
              According to Hamood Sangour Al Zadjali, executive president of the Central Bank of Oman, the recent bond sale may not be Oman’s only foray into international markets.

              “To avoid draining liquidity from the local banking system, the Omani government is turning to alternative funding sources, such as procuring a $5bn-10bn loan from the international market,” he told OBG.

              Any future borrowings would likely depend on developments within the local economy as well as global energy markets, with the recent rebound in energy prices removing some of the urgency to raise further funds.

              As Oman closed the book on its bond sale, prospects for the economy and for narrowing the budget deficit looked brighter.

              Prices for Omani crude had almost doubled as of June since hitting lows of $23.72 per barrel in January, the weakest in a decade. Growing demand saw futures contracts for July trading on the Dubai Mercantile Exchange at above $47 in early June.

              Though still subject to fluctuations and external shocks, the upward momentum in energy prices is expected to ease some of the pressure on Oman’s budget.

              Positive effects
              The relatively large government borrowing program to fund the budget deficits had put pressure on banking sector liquidity, Abdulaziz Mohammed Al Balushi, group CEO of investment firm Ominvest, told OBG.

              “This is evident in banks’ deposit rates, which have increased by at least one percentage point to 3.5-4.5% for two-year fixed deposits,” he said. “Hence, it is challenging for private sector companies to access funds from banks in the current environment.”

              As such, the return to the international market by the government should have a positive effect on private lending, freeing up more liquidity in the domestic financial system and helping drive down borrowing rates.

              Broader belt tightening
              The stepped up borrowing campaign is just part of a broader effort to balance the budget.

              Earlier this year the government moved to reduce subsidies on petrol and diesel, while price increases for some utilities and liquid petroleum gas are also being considered, along with the introduction of a goods and services tax.

              At the end of May the State Council and Majlis Al Shura jointly voted to approve a proposal to increase the corporate tax rate from 12% to 15%.

              The increase, along with plans to more strictly enforce corporate taxation, is expected to raise between OR125m ($324.6m) and OR250m ($649.3m) in revenue per year.

              Though yet to be ratified, the joint session of parliament also backed a proposal in late May to increase taxes on petrochemical and mining companies, with the tax rate for liquefied natural gas companies to rise from 15% to 55%.

              Taxes on petrochemical companies and non-energy natural resource exports, meanwhile, could see their base tax rate rise from 12% to 35%, though these measures have prompted concerns from some stakeholders that such steep hikes could curb appetite for investment.
              Oxford Business Group
              27 July

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