MENA Weekly: Saudi government debt, Egyptian pound

Reports this week highlighted the recent sharp rise in Saudi government debt and, while officials are taking steps to tighten fiscal policy, we doubt that they will do enough to prevent it climbing further. Risk premia on Saudi assets are likely to rise from current low levels. Elsewhere, although the Egyptian pound has appreciated further against the dollar over the past week, it has been fairly stable in trade-weighted terms suggesting that there hasn't been a loss of competitiveness.