By MEED staff (Jennifer Aguinaldo, Neha Bhatia, Wil Crisp, Colin Foreman and Indrajit Sen)

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> IMF forecasts Mena growth slowdown
> UAE overhauls visa system
> IMF agrees $3bn Lebanon funding
> Riyadh promises $3bn in financial aid for Yemen
> Turkish court halts Khashoggi trial
> Government resigns in Kuwait
> Tunisia signs loan deal amid default concerns

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ECONOMY

IMF forecasts Middle East and Africa growth slowdown

The Washington-based IMF expects GDP growth of 5 per cent in 2022 and 3.6 per cent by 2023, compared with estimated GDP growth of 5.8 per cent in 2021, in the Middle East and North Africa region.

Uneven growth is forecast between energy exporters and importers amid record-high oil and gas prices and the Russia-Ukraine war.

Regional countries are also exposed to food price risks, including the price of wheat, which is expected to remain high throughout the year and into 2023.

“Spillovers from tighter global financial conditions, reduced tourism and secondary demand spillovers will also hold back growth.” Read more

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OIL

Economic outlook causes Brent crude prices to fall

Oil prices dropped after the Washington-based IMF cut its global economic growth forecasts and warned of higher inflation. Prices largely held steady above the $100-a-barrel mark in April, however.

Brent crude lost 5 per cent of its value to reach $107.25 a barrel on 19 April after the IMF lowered its forecast for global growth in 2022 by 0.8 per cent.

Opec+ reduced output and produced about 1.45 million barrels a day below its targets in March as Russian output started to decrease following sanctions over Moscow’s invasion of Ukraine.

Brent crude was trading at $108.3 a barrel on 20 April.

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UAE

Visa system overhauled to attract top talent

The UAE has announced sweeping changes to its visa system.

The changes include introducing a 60-day stay for visitors and arrival without sponsorship from more countries.

Sponsors are also no longer required for business entry and job exploration, and entry permits have been launched for those visiting friends and relatives living in the UAE. 

Two new types of entry permits requiring sponsorship have also been designed for those on temporary work assignments or wishing to study in the UAE.

The scope of the 10-year golden visa has been amended and expanded, and a five-year green visa has been launched for unsponsored residency. Read more

LEBANON

IMF preliminarily agrees to $3bn loan and reform deal

The IMF has reached a staff-level agreement with Lebanon to arrange a 46-month extended fund agreement with special drawing rights (SDR). The facility is essential for Lebanon to exit its worst economic and financial crisis since the 1975-90 civil war.

The agreement for SDR 2.2bn, or about $3bn, is subject to the implementation of reforms in Lebanon, including in its financial and banking sector. 

Fiscal policies; state-owned enterprises, especially those in the energy sector; anti-corruption and anti-money laundering frameworks; Banque du Liban systems; and currency exchange systems are all targets of the reforms.

The agreement must be approved by the IMF’s management and executive board following the implementation of all required actions and the confirmation of international partners’ financial support. Read more

SAUDI ARABIA 

Riyadh promises $3bn in financial aid for Yemen

Saudi Arabia has announced a $3bn financial aid package for Yemen and Crown Prince Mohammed bin Salman bin Abdulaziz al-Saud has expressed Riyadh’s support for the country’s new Presidential Leadership Council.

The aid package includes $2bn for Yemen’s central bank that will be offered jointly by Saudi Arabia and the UAE. The remaining $1bn from Saudi Arabia will be broken down into $600m of oil derivative purchases and $400m for development projects and initiatives.

Riyadh has also pledged $300m to fund the UN humanitarian response plan for Yemen. 

Yemen’s President Abd-Rabbu Mansour Hadi has delegated power to the presidential council in a move aimed at supporting UN-led efforts to revive negotiations to end the country’s seven-year war. Read more

Tunisia has secured a $400m World Bank loan as concerns grow that the country is heading towards a default and the IMF warns of food crises in emerging markets

TUNISIA

Tunisia signs loan deal as political upheaval persists

Tunis has secured economic relief in the form of a $400m loan with the World Bank as concerns grow that the country is heading towards a default amid a domestic political crisis and global inflation accelerated by the war in Ukraine.

The loan agreement includes credit with reduced conditions and an interest rate not exceeding 1 per cent. It will be repaid over 17 years, including a five-year grace period.

President Kais Saied dissolved Tunisia’s parliament on 30 March after a meeting was held to vote down presidential decrees giving the head of state more power. 

Saied described the meeting as a “failed coup attempt” and a “plot against the internal and external security of the state”. Read more

IRAN

Uncertainty clouds revival of nuclear deal as talks stall

The revival of the 2015 nuclear agreement remains uncertain despite significant progress having been made in negotiations with Iran, according to US State Department spokesperson Ned Price.

Washington is preparing for both scenarios in which there is a mutual return to compliance, or in which no agreement is reached. “We would greatly prefer the former; whether we are able to get there or not, is a question for Iran.”

Iranian Foreign Minister Hossein Amir-Abdollahian said that the US has made “excessive demands that contradict some paragraphs of the text”.

He added: “The Americans keep talking about the need for direct negotiations, but we have not seen the benefit of direct talks.”

TURKEY

Turkish court halts Jamal Khashoggi murder trial

A Turkish court has ruled that the trial in absentia of 26 suspects accused of murdering dissident and journalist Jamal Khashoggi can be moved to Saudi Arabia.

The Istanbul High Criminal Court’s decision came on 7 April, a week after a Turkish prosecutor requested that the trial be halted and transferred because Saudi Arabia refused to extradite the suspects.

The wrapping up of the trial on the part of Turkish prosecutors has been interpreted by some analysts as an indicator of the thawing of relations between Istanbul and Riyadh. Read more

KUWAIT

Government resigns amid prolonged political crisis

Kuwait’s government resigned on 5 April amid the ongoing stalemate with parliament in the country.

Prime Minister Sheikh Sabah Khaled al-Hamad al-Sabah handed the government’s resignation letter to Crown Prince Mishal al-Ahmad al-Jaber al-Sabah, according to state news agency Kuna.

The resignation came ahead of a no-confidence motion against the prime minister in parliament amid a prolonged political feud that has hindered much-needed fiscal reforms in Kuwait.

Sheikh Sabah has faced opposition from parliamentarians intent on questioning him on topics including corruption.

The resigned government took power in December after previous resignations of the cabinet in November and January 2021.