Oman and Bahrain fiscal woes, Egypt SMEs, Suez Canal

Bahrain and Oman appear to be taking contrasting approaches to fiscal austerity but, in both cases, we think that further assistance from the rest of Gulf will be needed to keep dollar pegs intact. Elsewhere, steps taken by Egypt’s central bank to try to reduce informality among small businesses may help to boost the country’s long-run growth prospects. Finally, the blocking of the Suez Canal by the Evergiven container vessel has highlighted the waterway’s importance to global trade and as a source of foreign currency revenues to Egypt.