MENA | OPEC+ talks break down, Saudi tariffs, PMIs

OPEC+ negotiations to raise oil production in the coming months are in
deadlock as the UAE opposed an extension of the deal beyond the current end date of April 2022. Talks were abandoned with no date set for the next meeting and oil prices jumped to a three-year high of almost US$78pb, before retreating.

What you will learn:

• Saudi Arabia revised its import rules in a further sign of rising competition with the UAE, where free-zones are a key part of the economy.
• Imports from GCC free-zones and from Israel will now be excluded from preferential tariff agreements, signalling another move by Saudi Arabia to encourage international firms to relocate to Riyadh.
• Regional PMIs for June indicate recovery from the pandemic is under way in the non-oil private sector. The PMIs for Saudi Arabia and the UAE both remained firmly in expansionary territory at 56.4 and 52.2 respectively.