S&P Global Ratings (S&P) said that the Gulf Cooperation Council (GCC) region may see another wave of mergers and acquisitions (M&A), which will be more opportunistic, driven by economic rationale. S&P expected these mergers to take place once the GCC economies recover from the COVID-19 pandemic and the full effect of the current crisis on banks’ financials is visible. In its latest industry report card, S&P stated that the current economic situation might force the GCC region’s banks to find stronger shareholders or partner with p...

The upcoming issuance of the Talaat Moustafa Group’s (TMG) EGP 2 billion Sukuk is expected to have many positive impacts on Egypt’s economy amidst the prevailing COVID-19 pandemic, according to local media. It was reported that the Sukuk issuance can have positive impacts in multiple ways, the first being TMG’s Sukuk offering having the potential to be the starting point for the local Sukuk market, with Egypt’s financial instruments market lacking such modern financial instruments.  Local media also reported that the Sukuk iss...

Fitch Ratings’ Sovereign Team Director, Douglas Winslow, has stated that Turkey's economy will catch up with its sustainable trend of growth next year while its Gross Domestic Product is expected to increase by 4.5% in 2021, following a battle in 2020 against COVID-19.  Winslow added that Turkey recorded economic growth of 6% during the first quarter of 2020 (prior to COVID-19) with a sharp decline now being anticipated in the second quarter, due to the pandemic. Fitch predicts a flatter economic growth in the third quarter of 2020...

A new report by Fitch Ratings (Fitch) has downgraded Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to a ‘B’ (from B+) with a Negative Outlook. According to Fitch, the rating depicts the current burden on Nigeria’s external reserves due to COVID-19, as well as the recent dip in global oil prices.  The report also noted that excessive external pressures would have higher chances of disruption to Nigeria’s macroeconomic adjustment, while the country's uncertain monetary and exchange...

Malaysia has announced a MYR 10 billion (USD 2.3 billion) stimulus package to assist small and medium enterprises (SMEs) to lower the impact from the COVID-19 pandemic that threatens to adversely impact Malaysia’s overall economy. Malaysia’s Prime Minister (PM) Muhyiddin Yassin emphasized the importance of SMEs, which contributes 40% to Malaysia’s economy, adding that it was important to keep the SME sector afloat to counter the prevailing economic challenges. The highlight of this stimulus package...

International rating agencies have downgraded the ratings and outlooks of Indonesian corporates based on reasons related to liquidity risks, concerns over ability to repay debt, depreciation of the IDR, low commodity prices and overall weak demand. Moody’s Investors Service has lowered the ratings of property developers Agung Podomoro Land and Alam Sutera Realty, as well as tyre producer Gajah Tunggal and coal miner Bumi Resources. Meanwhile, Fitch Ratings has downgraded private lender Bank Central Asia, while Standard &a...

Asian Development Bank (ADB) has projected that Indonesia’s economy will grow at 2.5% in 2020, compared to a four-year low 5.02% growth reported in 2019. This subdued forecast is driven by the on-going COVID-19 pandemic, lower commodity prices and volatile financial markets, which have also affected Indonesia’s key trading partners. ADB country director for Indonesia, Winfried Wicklein, stated that Indonesia’s economy could gradually return to its growth trajectory in 2021 if adequate measures are effectively implemented&nbs...

Dubai has initiated talks with banks regarding a potential bond sale or a loan to revive its economy, which is affected by the on-going COVID-19 pandemic, according to industry experts. However, no public announcement has been made by the Dubai government on this matter till date. With an economy heavily dependent on tourism and trade, industry experts predict that the business and travel hub of the Middle East is susceptible to the economic impacts of COVID-19 as Dubai has already enforced full day movement restrictions to stop the spread of...

Following the announcement of an USD 590 million stimulus package in March 2020, Prime Minister (PM) of Bangladesh, Sheikh Hasina, announced an additional stimulus package of around USD 8 billion, taking the total stimulus to USD 8.5 billion to date, amounting to 2.5% of Bangladesh’s GDP. The PM expressed hope that the prompt implementation of the new stimulus package would allow Bangladesh’s economy to recover and reach desired economic growth levels. She added that the main...

The United Arab Emirates-based Shariah-compliant lender, Dubai Islamic Bank Group (DIB Group) has disclosed that Dubai Islamic Bank (DIB) had an exposure of USD 424 million to the NMC Group (NMC), while its subsidiary Noor Bank had an exposure of USD 116 million to the troubled healthcare service provider as of the 31st of March 2020.  In a statement to the Dubai Financial Market (DFM), DIB Group said that all facilities were extended exclusively to NMC’s operating companies and based entirely on operating cash flows earned in the UAE. DIB G...