The global market turmoil and the impact on MENA

Financial markets in the Middle East weren’t spared from the global sell-off earlier in the week. There could be a macro impact on the Gulf economies through the fall in oil prices, either via lower revenues of if it prompts OPEC+ to hold off on raising oil production later this year. This would present a downside risk to GDP growth in the region. Elsewhere, while Egypt’s financial markets were hit hardest, the fact that officials allowed the pound to weaken adds to the credibility of the policy shift underway since March.