Market Reaction Is Poor For Gulf Economy: Deutsche Bank’s CEO

Recently, CEO of Deutsche Bank’s Middle East and Africa region said that market sentiment is not suitable for Gulf countries at the present moment acknowledging the apprehensions that shareholders have held about the state in recent years. While discussing his financial outlook at the WEF (World Economic Forum) on the Middle East and North Africa in Jordan, Jamal Al Kishi said to CNBC, “The private sector in the region, honestly, is still not feeling optimistic sentiment-wise. The financial system has struck a soft patch after the collapse of crude prices.” Indeed, analysts point to declining numbers on a variety of fronts. While Saudi Arabia considered strong economic progress toward the end of the last year, a dropdown had almost certainly got started at the beginning of 2019 on the back of oil productivity cuts, as per to London-based consultancy firm Capital Economics.

Reportedly, Bahrain had to receive a $10 Billion support package from its neighbors last year and Moody’s has exposed Oman of its last investment-grade rating. The activity in non-oil divisions of the UAE was slow, and the nation fell into depreciation in January. Property costs in the profitable hub of Dubai are dropped some 25% from 2014 and progress slowed to 1.9% in the last year from 3.1% in 2017, the minimum rate in 8 Years.

Similarly, recently, Deutsche Bank was in news as its troubled trading arm would be a center of European banking controllers when they choose whether to sanction a potential acquisition of competitor Commerzbank, as per to sources familiar with the matter. Regulators at the ECB (European Central Bank) and national authorities need a clear notion of how much the merged entity would depend on the securities part for revenue. The foundation of the deal cannot just be to utilize additional retail deposits to support the investment bank, stated one of the sources.

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