Egypt’s external gains, Saudi real estate, Saudi-UAE tensions

Data released this week showed that Egypt's current account deficit has continued to improve nearly two years on from the policy shift. The growing likelihood of a rebound in Suez Canal traffic will further bolster the external position. Elsewhere, figures from Saudi Arabia showed that real estate prices declined at their fastest pace in six years in Q4 last year, a sign that the government’s housing-related measures are having the desired effect. That said, officials will need to keep an eye on associated risks in the banking sector. Finally, tensions between the UAE and Saudi continue to grow. The economic impact is likely to be limited, but there could be implications for cohesion within OPEC+.