JUNE 05 - JUNE 11, 2016 WEEK 24

CONTACTS The MENA WEEKLY MONITOR

Treasury & Capital Markets Economy Bechara Serhal ______(961-1) 977421 [email protected] p.2 WORLD EXPECTS MENA REGION GROWTH TO BE LITTLE CHANGED IN 2016 AT 2.9% Nadine Akkawi In its recently issued Global Economic Prospects report, the World Bank estimated growth in the Middle (961-1) 977401 East and North Africa at 2.6% in 2015, slightly weaker than in 2014, with growth expected to be little [email protected] changed in 2016 at 2.9%. Also in this issue Toufic Aouad p.3 Banking system outlook on Egypt “stable” benefitting from a stable deposit base, says Moody’s (961-1) 954922 p.4 Abu Dhabi ran an estimated fiscal deficit of US$ 18 billion last year, says Citi [email protected] Surveys Corporate Banking ______p.5 UAE’S REAL ESTATE SECTOR WITNESSES SLUGGISH GROWTH DURING THE FIRST Khalil Debs HALF OF 2016, AS PER KNIGHT FRANK (961-1) 977229 According to Knight Frank’s recently issued report “UAE Real Estate 2016 Mid-Year Market Review”, the [email protected] real estate sector in the UAE witnessed sluggish growth during the first half of 2016.

Also in this issue p.6 Bahrain’s long-term and short-term foreign and local currency sovereign credit ratings affirmed at “BB/B”, as per S&P p.6 Smart technologies can reduce utilities spending by US$ 10 billion in the GCC, says EY RESEARCH Corporate News ______p.7 'S SWF COMPLETES US$ 2.5 BILLION DEAL FOR SINGAPORE TOWER Asia Square Tower 1 in Singapore has been sold by a BlackRock-advised fund to the Qatar Investment Marwan Barakat Authority (QIA) for about US$ 2.5 billion. (961-1) 977409 [email protected] Also in this issue p.7 Dubai Investments plans to launch US$ 544 million education and healthcare funds Jamil Naayem (961-1) 977406 p.7 Meydan Group inks US$ 270 million Islamic fundraising deal [email protected] p.8 Bank of Khartoum to buy Etisalat's stake in Sudan's Canar p.8 GFH to buy US$ 65 million real estate assets in the US Salma Saad Baba p.8 Dubai's Limitless awards US$ 62 million deal for Jebel Ali project (961-1) 977346 [email protected] Markets In Brief ______p.9 UPWARD PRICE MOVEMENTS ACROSS REGIONAL CAPITAL MARKETS Fadi Kanso (961-1) 977470 MENA equity markets rebounded this week following three consecutive weeks of price declines, [email protected] supported by some favorable market-specific and company-specific factors. This was reflected by a 1.7% increase in the S&P Pan Arab Composite Index. The UAE equity markets led the advance, posting Gerard Arabian a 3.8% rise in prices, and the heavyweight Saudi Tadawul registered price increases of 1.6%. Also, (961-1) 964047 regional bond markets registered price gains across the board week-on-week, with decent flows [email protected] going to sovereigns and quasi-sovereigns, tracking rises in US Treasuries amid lingering concerns over a possible UK exit from the European Union that boosted demand for safe haven assets. Farah Nahlawi (961-1) 959747 [email protected] MENA MARKETS: WEEK OF JUNE 05 - JUNE 11, 2016

Nivine Turyaki (961-1) 959615 [email protected]

Week 24 June 05 - June 11, 2016 1 Bank Audi sal - Group Research Department - Bank Audi Plaza - Bab Idriss - PO Box 11-2560 - Lebanon - Tel: 961 1 994 000 - email: [email protected] JUNE 05 - JUNE 11, 2016 WEEK 24

ECONOMY ______WORLD BANK EXPECTS MENA REGION GROWTH TO BE LITTLE CHANGED IN 2016 AT 2.9%

In its recently issued Global Economic Prospects report, the World Bank estimated growth in the Middle East and North Africa at 2.6% in 2015, slightly weaker than in 2014. The sharp fall in oil prices over the past two years and the continuation of several serious conflicts are major factors holding back activity in the region. Growth is expected to be little changed in 2016, at 2.