Kuwait remains the most resilient country to lower oil prices in the GCC with the highest fiscal breakeven price of oil, even though Kuwait still budgets for a deficit as it includes transfers to future generation fund and excludes investment income on SWF’s AuMs of USD 530bn.
Nonoil growth has slowed down, but remains in positive territory.
In our view, Kuwait is being fiscally too responsible given that its SWF assets amount to c.USD 390k per national.
We play NBK (cheap on underlying basis) and Ooredoo Kuwait (high FCF yield play).
Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa.
Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research.
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