Research Briefing | Jul 19, 2021

MENA | Saudi-UAE agreement, Covid-19 restrictions

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Amid deadlock within OPEC+, speculation is rising that Saudi Arabia and the UAE have reached a compromise over production quotas, after the UAE opposed an extension of the group’s cooperation deal beyond the current end date of April 2022.
What you will learn:

  • Oman and Bahrain announced additional Covid-19 related restrictions to cover the Eid al-Adha period, with fears that large gatherings that are typical over the holidays could fuel a surge in cases. Elsewhere, Qatar is opening up to vaccinated tourists as it ramps up preparation for the 2022 World Cup.
  • Turkey’s central bank kept its policy interest rate on hold at 19.0% after inflation hit 17.5% in June, its highest in over two years, fuelled by a boost to consumer spending from the relaxation of restrictions compounded by vulnerability to rising commodity prices and a weak currency. A rate cut is unlikely before Q4.
  • Following the collapse of OPEC+ talks and tensions between Saudi Arabia and the UAE over production cuts, there is speculation that the two countries have reached a compromise.
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