With its unresolved dispute with Saudi Arabia over the so-called 'neutral zone' rumbling on, record-low oil prices and the possibility of an Organisation of the Petroleum Exporting Countries-imposed production freeze, Kuwait's oil industry is under pressure. Still, the country remains committed to investments in the sector.
Kuwait's economy has come under pressure in the past year, mainly due to falling oil prices. But, with the help of healthy sovereign reserves, the country has weathered the difficulties well, and the government remains committed to its long-term development plan.
There is a positive mood in Kuwait's banking sector, thanks in no small part to the government's healthy balance sheet and its commitment to project spending. However, the low oil price environment and cooling real estate market loom large on the horizon.
Kuwait boasts one of the most respected Islamic finance markets in the world. But ever keen to move with the times, the country is establishing a capital markets authority law designed to develop the domestic sukuk market, one of many recent boosts the industry has received.
The vice-governor of the Saudi Arabian Monetary Agency, Abdulaziz Saleh Al-Furaih, is happy for the central bank to maintain low interest rates and a consistent policy on the riyal. He tells James King of his plans for SMEs, the low oil price environment and what the future holds for the country's banking sector.
As banks in the Middle East cope with the impact of the oil price slump on domestic economies by increasingly looking to new markets – Turkey and Egypt in particular – lenders from countries that had retreated in the aftermath of the global financial crisis are heading back into the region.
The high levels of merger and acquisition activity seen in the Middle East and Africa banking sector – from both overseas names and domestic companies – shows that the economic and political turbulence much of the region has experienced in recent years has not dampened investors' appetites.
The United Arab Emirates Banks Federation is embarking on a range of measures to tackle the country’s slowing economy, including improving mobile banking payment services, bolstering the assistance provided to SMEs, and developing a more consistent approach to applying sharia law to finance. Its chairman speaks to James King.
Regional unrest, low oil prices, the lifting of sanctions in Iran and an uncertain global economy have all contributed to the difficulties that the Tadawul, Saudi Arabia's stock exchange, is experiencing. However, reforms within the exchange, and the country at large, provide hope for the future.
Iran's potential – with its abundant natural resources, young and educated workforce, advantageous geographical location and emerging status as a tourism hub – can now be realised with the sanctions imposed against the country dropped. This is an opportunity that cannot be missed, writes Ali Taiebnia, the country's minister of economic affairs and finance.
Bahrain's sovereign wealth fund, Mumtalakat, has weathered economic and political uncertainty both at home and throughout the wider Middle Eastern region, and is now back on a path to growth, with its aviation holdings being at the forefront of this turnaround.
The drop in oil prices has not hit Qatar's economy particularly hard, and its central bank governor, Abdulla Bin Saoud Al-Thani, is looking to further diversification, a strong banking sector, infrastructure investment and closer ties with China to keep the country in the fast lane when it comes to economic growth.
China's One Belt, One Road initiative – building a new Silk Road between western Europe and China's east coast as well as improving the Maritime Silk Road – will be a major game changer for international trade. Stefania Palma assesses its possible impact.