MENA | Turkey GDP; Saudi FDI; OPEC+ meeting

Turkey’s economy posted growth of 0.9% q/q in Q2. The better result than our forecast of a 0.6% q/q decline was fuelled by a strong post-lockdown rebound in June. And latest indicators show activity surged to new highs in Q3, presenting upside risks to our forecast, notwithstanding concerns surrounding the spread of the Delta variant. We will be raising our 2021 GDP growth forecast above 8%

What you will learn:

• Following reform that allows 100% foreign ownership in the private sector as well as a large-scale investment programme announced by the government, Saudi Arabia’s foreign direct investment rose by 13% year-on-year in Q1 2021, with the number of business licenses increasing by 36% in the same period.
• OPEC+ agreed to stick with the previously agreed gradual output hikes, boosting production by 400,000 bpd each month between now and late 2022.
• Despite speculation that production could be increased more rapidly, OPEC has urged caution against a backdrop of the spread of the more contagious Delta variant.