GCC Liquidity Fall - Impact on Banks, Stock Market and Debt Market

Executive Summary

2015 marks as one of the worst lows in terms of oil prices and oil revenues, the backbone on which most of the GCC economies ride. After clocking more than a trillion dollars annually in export revenues during the period 2012-2014, GCC economies will witness a 23% fall in export revenues in 2015 mainly driven by Saudi Arabia. Kuwait export revenues will likely fall by 35% followed by Saudi Arabia at 33%. Such a drastic fall in revenues will likely trigger a liquidity fall and will impact several sectors of GCC. This report analyses the impact of falling GCC liquidity on three important segements i.e., banks, stock markets, bond markets and policy options available to cruise through the situation.