MENA credit emerges as a safe haven. US President Trump’s actions and the resultant tariff uncertainty led to a pause or slowdown in issuance, as the first two weeks of April did not see any bond issuances in the MENA region. However, entities with strong credit quality, especially financial institutions, are likely to continue issuing bonds. As global volatility remains elevated, we think it likely that high-quality names in MENA will be considered safe havens.
The breather in oil prices is unlikely to last long. The global trade disruptions due to US policy decisions continue to negatively affect oil prices, amid growing concerns about global growth. Oil was caught in the chaos, with the oil price extending its decline since the beginning of the year mainly due to mounting tensions between the US and its trading partners, clouding the outlook for consumption.