The merger between National Commercial Bank and Samba is the latest effort to consolidate the Saudi banking sector and, with the crisis likely to weigh on profitability, it may be a sign of things to come. Elsewhere, the announcement that Oman will introduce a 5% VAT rate next April should help to address the country’s large twin deficits and unlock financial support from the rest of the Gulf. Meanwhile, OPEC+ production figures continued to show that some countries are overproducing. While the current deal will stay in place, Saudi Arabia may grow increasingly aggravated and ultimately abandon the deal to regain market share.
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