Gulf rulers’ health, Dubai property downturn

Saudi Arabia’s King Salman and Kuwait’s Emir Sabah al-Ahmad al-Sabah were both hospitalised this week, raising questions about a future transition of power in both countries. We doubt that this would result in major shift in policymaking but Saudi Arabia’s Crown Prince Mohammed bin Salman would tighten his grip on power, heightening domestic political risks. Elsewhere, concerns about Dubai’s property slump have intensified and reinforcing our fears that government-related entities may struggle to service their upcoming debts and that banks’ balance sheets will take a hit