Business

Abu Dhabi Fund for Development (ADFD), the leading national entity for international economic development aid, has signed two agreements with the Government of Mali. These include an AED918 million (US$250 million) concessionary loan to support the balance of payments in the country as well as an additional concessionary loan of AED110 million (US$30 million) to finance the implementation of phase two of Mali’s National Social Housing Programme.

In a landmark development that comes as a global recognition for Boursa Kuwait, the Capital Market Authority (CMA) and the Kuwait Clearing Company’s (KCC) sweeping market development efforts, MSCI Inc., a leading provider of critical decision support tools and services for the global investment community, today announced the reclassification of Kuwait to ‘Emerging Market’ from its previous ‘Frontier Market’ status in its 2019 Annual Market Classification Review.

The Bloomberg Commodity Index traded higher for the first time in four weeks. While growth-dependent commodities such as crude oil moved lower despite renewed concerns about stability in the Middle East, it was once again the agricultural sector that led from the front.

Currencies

Pound is undervalued

Pound Sterling is still trading at a steep discount to fair value, since improving UK economic fundamentals mean the British currency is well positioned for a rebound to higher levels over the longer term. The UK current account deficit fell to its lowest level since 2011 during 2017, coming in at £82.9 billion or 4.1% of GDP, as UK earnings from overseas assets rose during the year and UK government payments to the EU and spending on foreign aid were a fraction lower. This is a marked improvement on the +6% of GDP deficit that was seen in 2015. Meanwhile, RBA is approaching a very gradual approach to raising rates as they don’t want to burden borrowers with higher rates. We would recommend a buy on GBP/AUD as on the charts also it is near support level.

A tumultuous first trading week of 2019 headed towards a calmer close. After hitting a 33-months low the Bloomberg Commodity Index managed to climb to record its first weekly gain in five. The global market rout was caused by economic and political uncertainty as well as tightening liquidity paused on Friday after Beijing confirmed that a US trade delegation would visit on January 7- 8.

Emirates NBD, a leading bank in the region has announced the launch of a new VAT-based enhanced loan solution for small and medium-sized enterprise (SME) customers.

The new loan program makes it easier for SMEs to apply for financing by providing copies of their VAT (Value Added Tax) returns filed with the UAE’s Federal Tax Authority to serve as validation of business turnover and income.