Dr Judy Thomas (MBA, PhD, FICS)’s Post

The $12.9 billion loan agreement between South Sudan and a little-known company from the UAE raises concerns about the potential long-term implications for the country's oil revenues. By tying up a significant portion of its oil income for repayment, South Sudan risks constraining its fiscal flexibility and economic development prospects for years to come. This deal highlights the growing trend of oil-for-cash arrangements in African countries, where struggling economies seek immediate financial relief at the expense of future resource revenues. Such arrangements often raise questions about transparency, accountability, and the terms of repayment, necessitating careful scrutiny and oversight by both domestic and international stakeholders. #OilRevenue #SouthSudan #EconomicDevelopment #DebtBurden #Transparency #Accountability https://lnkd.in/eSmYYdGK

Key economic indicators highlight robust non-oil growth across the region especially in Saudi Arabia and the UAE, signaling a resilient economy despite lower oil production. Find out more in our report. https://pwc.to/3NnbRFy PwC Middle East #economy #middleeast

In a historic agreement, South Sudan is set to receive a $13 billion loan from a Dubai-based company in exchange for access to cheap oil prices. The deal, which is one of the largest oil-for-cash agreements in history, will allow the UAE firm to purchase oil at a discounted price for up to 20 years. The loan will provide much-needed funds for South Sudan's economic development, which has been hindered by political instability and conflict. The country has struggled to recover from a civil war that began in 2013, and the loan is seen as a vital lifeline to support its recovery efforts. However, the deal has also raised concerns about the potential for corruption and mismanagement of funds. The United Nations has called for transparency and accountability in the agreement, and has urged South Sudan to ensure that the loan is used for the benefit of its citizens. The UN has also expressed concerns about the country's dependence on oil exports and the need for diversification of its economy. The oil-for-cash deal has significant implications for South Sudan's economy and its people. While the loan will provide short-term benefits, the discounted oil price could also limit the country's revenue potential in the long term. Additionally, the deal has raised concerns about the country's vulnerability to fluctuations in the global oil market, and the need for sustainable economic development strategies that benefit all South Sudanese citizens. . . . #SouthSudan #UAEFirm #OilForCash #LoanAgreement #EconomicDevelopment #TransparencyAndAccountability #UnitedNations #CorruptionConcerns #OilDependence #Diversification #tribunetrends

Higher oil prices and relative fiscal discipline have led #Dubai (unrated), #Oman (BB+/Stable/B), and #Qatar (AA/Stable/A-1+) to repay some of their government debt. In turn, the aggregate GCC stock of net government debt should modestly improve having weakened after oil prices fell sharply in 2015. Read more: https://ow.ly/wVFb50Q7jCI

The UAE is committed to investment and betterment of life in the Africa. One such deal is the port maintenance deal between #DPworld and #Tanzanian Government. The deal is a 30 year one where in the first phase $250 million will be invested and will be gradually increased to $1 billion over the concession period. What other investments by the UAE in the African continent? #uaeinvestmentinafrica

A South sudanese friend:"We are really finished, Marina" A little-known company run by a distant relative of the Abu Dhabi royal family agreed to lend 12 billion euros ($12.9 billion) to South Sudan in exchange for repayment in oil, making it one of the largest ever oil-for-cash deals and the latest such intervention in a struggling African country. According to an unpublished report by a United Nations Security Council-appointed panel of investigators reviewed by Bloomberg, the Dubai-based Hamad Bin Khalifa Department of Projects, or HBK DOP, and South Sudan’s then-finance minister Bak Barnaba Chol appear to have agreed to the terms of the loan in documents signed between December and February. The deal amounts to almost double the GDP of South Sudan, which has been ravaged by famine and conflict, and 70% of the funds are earmarked for infrastructure, according to the documents seen by the investigators. But a loan of this size — about five times the country’s current external debt — also would likely tie up most of South Sudan’s oil revenues for many years, the unpublished report says. For HBK DOP, which was founded by Sheikh Hamad Bin Khalifa Al Nahyan, a distant member of Abu Dhabi’s royal Al-Nahyan family, the loan may lock in access to oil at a discounted price for up to two decades. Under the agreement, South Sudan will receive $10 less per barrel of oil when compared with an international benchmark price... James Cust, former senior World Bank economist : “It’s a big deal, and it’s going to run and run.” It’s not clear whether the first $5 billion installment of the loan has been delivered, and attempts to reach HBK DOP for comment haven’t been successful. I... South Sudan’s current finance minister didn’t respond to a request for comment. Chol, who was fired by President Salva Kiir in March amid local media reports of worsening economic conditions, declined to comment. The country’s information minister wasn’t immediately reachable by phone and the UAE government media office hasn’t responded to a request for comment. The loan comes amid an aggressive expansion by Gulf countries and regional businesses into new markets. In February, the UAE offered Egypt a $35 billion lifeline, and it has pledged more investment to African countries than any other region. UAE Investment Pledges Dwarfed Rivals in Past Two Years Investment pledges by UAE in Africa totalled $44.5 billion last year ...UAE-based companies have been regular creditors to South Sudan...According to the panel, the loan documents don’t appear to have been approved through the country’s official channels... The HBK DOP loan, which was negotiated on the sidelines of the COP28 climate summit in December in Dubai, may force South Sudan to continue producing oil until at least 2043, years beyond the lifespan of the country’s existing oil wells. .. “If it turns out to be a bad deal for South Sudan, that's a stonking great carbon subsidy that they're providing to the market,” Cust said.

A new report produced by the global research and advisory firm Oxford Business Group (OBG) provides in-depth analysis of Bahrain’s efforts to diversify its economy and boost investment against a backdrop of high oil prices. The Report: Bahrain 2023 explores the policy initiatives and regulatory reforms that are attracting investment in high-potential sectors, including tourism, ICT, logistics and financial technology. It also shines a spotlight on the kingdom’s manufacturing activities, with a specific focus on the aluminium segment and its pivotal role in supporting the development of Bahrain’s downstream production and export capacity. The Report: Bahrain 2023 is now available to view and download at: https://lnkd.in/dS5SsRxb Read details on bizbahrain.com #OBG #oxford #report #oil #regulatoryreforms #investments #technology #financial #logistics #tourism #ICT #financialtechnology #export #business #bahrain #gcc #news #businessnews #bahrainnews #bizbahrain Oxford Business Group

KUWAIT CITY, March 18: The financing provided by local banks to the industrial sector saw a significant increase in January compared to December 2023, rising by 123.5% to 148.9 million dinars from 66.6 million dinars. This surge represents a noteworthy boost in funding for industrial activities within Kuwait. Moreover, on an annual basis, this increase amounted to 38.3% from 107.6 million dinars in January 2023. The rise in financing indicates a positive trend in supporting industrial development and growth in the country. Simultaneously, the accumulated balance of industry financing also witnessed growth, indicating sustained investment in the sector:https://lnkd.in/d5NuBMcC

UAE Economy Grows 4.3%, Non-Oil GDP Up 6.7% > The UAE economy grew 4.3% YoY in Q4 2023, with non-oil GDP surging 6.7% > Finance, real estate, transportation, and construction led growth, reflecting strong domestic activity and diversification efforts Read more: https://bit.ly/44XCOsa #internationalfinance #uae #economygrowth #nonoilgdp #financialgrowth #economicdiversification #uaeconstruction #renewableenergy #techinvestment

Key economic indicators highlight robust non-oil growth across the region especially in Saudi Arabia and the UAE, signaling a resilient economy despite lower oil production. Find out more in our report. https://pwc.to/3NnbRFy PwC Middle East #Economy #middleeast