COVID-19 + oil crash test the mettle

Arabia Monitor Monthly
COVID-19 + oil crash test the mettle
  • Iraq’s ability to respond to the fiscal crisis is limited as the government formation process continues. The federal government’s plans to end monthly payments to the Kurdistan Regional Government (KRG) could result in a stalemate between the two sides.
  • The COVID-19 crisis has exacerbated problems in Lebanon, prompting resumed protests, and the currency is in freefall. The blame game and political bickering will continue as rallies continue to escalate.
  • Debt service options for Oman will become increasingly costly. The market has yet to see a bold, new economic strategy from the new Sultan, who was in charge of Oman’s Vision 2040 -- the first of its kind in the GCC.
  • Cargo capacity has been recovering between China and the GCC, mainly driven by the need for Personal Protective Equipment (PPE), reinforcing the positions of the UAE and Qatar as regional transportation hubs.

 

Florence Eid-Oakden, Ph.D, Chief Economist

Robin Mills, Maryam Salman, Energy Analysts

Charlene Rahall, Mingqiao Zhao, Leila Lajevardi & Nancy Bou Dakka, Analysts 

Arabia Monitor’s MENA Monthly publication provides a timely snapshot of most notable recent developments in the dynamic MENA region. Our analysts get past the news to deliver the core, forward looking conclusions that markets-oriented readers look for.

To access this report, please click here.

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