Recovery hangs in the balance

Arabia Monitor Monthly
Saudi Arabia

With vaccines being rolled out in some MENA countries earlier than anticipated, we are feeling hopeful. The much-awaited respite would, however, come when oil prices reach around USD 60 pb and stay there, which we do not see as imminent. In this MENA monthly, we provide insights on: 

  • How the larger economies in the region, particularly the GCC, are learning to turn their wheels amidst low oil demand and weak consumer confidence, judging from the push in reforms and continued momentum toward diversification seen in 2020. 
  • How the Public Investment Fund (PIF) will have a strong domestic role in supporting Saudi Arabia's recovery going forward. It will likely offset some of the kingdom's austerity effects and expenditure cuts. 
  • How the formation of yet another new government in Kuwait is delaying reform implementation. 
  • On the political front, we look at renewed instability from the suicide bombings in Iraq, and the fragile ceasefire in Libya.

 

Florence Eid-Oakden, Ph.D, Chief Economist

Ghalia Al Bajali, Leila Lajevardi, Mingqiao Zhao, Bouchra Abaakil, Analysts 

Robin Mills, Maryam Salman, Qamar Energy

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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