the gcc in the framework of the gcc was part of our agreement and gcc countries along with the united states to enhance and develop our capabilities and counterterrorism financing in partnership with united states and each country should carry this out bilaterally. the other countries i don't know if they are steps are. >> looking at a few regional issues that open us up to the audience and one to look at is is -- has taken a strong supportive qatar in the uae. what are the larger vocations of a stronger relationship at the moment? >> first we need to understand the geography of the region. we have one land border which has been blockaded without any notification. if it's the only way to supply food and medicine for the country and from the eastern side we have the uae and the territory which we are sharing together and from the other side side. iran is the only path forward from the north. others the border with iran -- surely we will have this communication. after the blockade the only way forward for our ships to bring supplies and for our people the food and medicine supplies is j

regarding the gcc and the frame work of the gcc and relation with them, actually it was part of our agreement as gcc countries, along with the united states, to enhance and develop our capabilities in terrorism-- conquering terrorism financing with the united states and each country should carry that out bilaterally, after the meeting. the other countries they have to join and i don't know if -- what their-- >> so looking at a few regional issues and then kind of open this up to the audience and one to kind of look at is iran has taken a strong position in support of qatar against saudi arabia in the uae. what are the larger implications of a stronger relationship with tehran at the moment? >> well, first, we need to understand the geography of the region. if you look at this, we have one land border, which is by saudi arabia and it's been blockaded without even any notification before. so it's the only way to supply the food and medicine and the other supplies for the country. from the eastern side we have uae and we have this territory which we are sharing together and this for uae and the

gcc. we look at, like, you were in -- you were in kuwait this past december, and i believe this was the first time yourself and he's highness were with your gcc counterparts in many months and the meeting ended quite abruptly. has there been -- and there is certainly since your visit here. has there been any indications of you seeing any optimism on the road to a potential kind of resolution or dialogue, whether that be convened by president trump or more specifically convened by kuwait or are we still at an impasse? >> qatar remains calling for the dialogue and supporting the initiative of the amir of kuwait when he offered to mediate between the gulf countries and also accepted the invitation which was issued by the president for -- to call all the gcc members to camp david in order to see a solution for this. but when you have a conflict between parties and one of the parties is unwilling to engage in dialogue or unwilling to engage towards a solution, then this dialogue, even if it wou

[applause] wanted to touch on a point that you stress the future of the gcc. timeieve this is the first with your counterparts in many months and it ended quite abruptly. been any indication of you seeing any optimism on the road to a potential resolution dialogue or more specifically, convened by kuwait or only still at an impasse? -- when he offered and also in orderthe invitation to see a solution. when you have a conflict between parties and one of the parties is unwilling to engage toward dialogue -- n this for the first was time the leaders see each other .ace-to-face done everything showing the goodwill towards the solution. number ofthink the issues that have been raised by her neighbors have everything interference. they allege in the neighbors affairs since 2014 that if there point, it appears there's not much momentum or will. a potentialhis has opportunity in light of president trump's phone call and amir earlier this month hosting a came david cell summit later this spring. does this give and windows to at least find an opportunity to have a proac

people tend to think if you add gcc debts, you increase risk.nterintuitive reality is that adding gcc bonds to a global fixed income portfolio or to a regional equity portfolio reduces risk, diversifies return, is recommended. but the reason people don't do it is because people have not historically focused on fixed income in this part of the world. the bond markets are not part of the emerging markets world. they are not part of the developed markets world. they seem to be stuck in this no man's land. our hope is that with this wave of issuance at this pace, it helps the region emerge as a significant bloc. that is our expectations. we would encourage people to invest in tomorrow's bond markets today. yousef: what is the story from a corporate bond market perspective? what has been happening there? it has been a tale of two stories. it has not been as straightforward as the other sovereign story. dino: in a way, it has been. this is a region that has about $350 billion of debt outstanding. about $200 billion is in corporate or quasi-government

on top of that, we look at opening doors potentially outside the gcc.hat kind of markets would you be looking at outside of the gcc? my understanding, having spoken to some of the analysts, is that you are looking at markets that it is a bit of a novelty. can you run us through what markets would fit that bill? jasim: historically, the market in the gcc has been quite big for us. and we have been quite busy. it now went a strong shareholder able to open doors, we are potentially looking at markets in north africa and india. yousef: would egypt be an -- would be a consideration? morocco? jasim: absolutely, egypt is an option we are looking at now. that would be potentially 2018 or 2019. yousef: there is another way of growing your business, and that is inorganically through acquisitions. is that an option for you? jasim: we are always in the market looking for opportunities. we finalized an opportunity early in 2017. we acquired a plant in abu dhabi. we are looking at additional opportunities. yousef: what kind of valuation would that have? jasim: it dep

historically, the market in the gcc has been quite big for us.shareholder able to open doors, we are potentially looking at markets in north africa and india. yousef: would egypt be an option? anim: absolutely, egypt is option we are looking at now. that would be potentially 2018 or 2019. yousef: there is another way of growing your business, and that is in organically through acquisitions. always in the market looking for opportunities. we finalized an opportunity in in7, acquiring a plant abu dhabi. what kind of valuation would that have? marketit depends on the and the taker. it is hard to give you a number. this yearuld you say you are more keen on acquisitions? jasim: absolutely. we are always keen on arabiations, and saudi also is a potential market. acquisitions, we are building existing plants in saudi arabia. yousef: you have quite a sizable market share in abu dhabi. will we see more consolidation possible in the next few months? is that a pocket of opportunity? jasim: in abu dhabi, we are the biggest player. andave 70% of the market, t

the gcc was lackluster in terms of emerging markets.he growth was not there, the emerging markets are picking up in terms of momentum. the money was flowing elsewhere. now we are starting to see improved momentum. you see these stocke improving year to date. people are looking at those stories, there is a real turnaround story. everybody is looking at it. that is because of the fol. there are investors trying to get in. the only reason it is cheapest which isf the fol, around 5%. if that goes, stop will fly at 20%, 30%, 40%. yousef: how much more momentum do you expect to build into the egypt reform story? in terms of investor interest from around the world, because the treasury story in terms of yield have given investors some of the best returns in the world. in terms of equity markets, are you seeing a lot more inflow than a lot more requests to allocate assets? jaap: a lot. we had our egyptian conference in south africa. a couple of stocks -- the best stories out there we thought were very strong doubled in value. a pharmaceutical d

if you look at a lot of non-gcc or even gcc oil production targets over the long-term, there are verye long-term targets in this region. even if you want to have a economyon, almost every in this region is still looking to oil. show yould go to something about what happens beyond 2018. tracy: what are the risks now that countries -- we talk about this all the time -- countries in this region take their foot off the pedal when it comes to fiscal reform? jean-paul: it's a very big risk. if you are concerned about the long-term macro outlook you don't want six he five dollars per barrel. he would have preferred them to stay at $50 so the momentum pushes through. people talk about saudi arabia during too much too quickly. i don't believe that is the case. they've made some minor reforms. i don't inc. with seen that. us.y: you're sticking with we are going to be sticking with the emerging market team as well. south africa's present -- president sees a new dawn. is he right? we will discuss that next. this is bloomberg. ♪ ♪ yousef: time for a quick check on the first word headlines. slammed

to the second part of your question, what it means for the gcc.policy around the region, with the exception of egypt area not only in support of exchange rates, but also for countries like jordan for instant's. yousef: egypt is one of your calls, you are pointing the quintessential question as to whether these high-yield returns on government bonds are sustainable or whether the recovery story will have the same kind of momentum this year? guest: absolutely. egypt has always been the biggest non-consensus calls for 2018, and we were calling for higher interest rates. the central bank might actually not respond to the pressure. we have a similar view for 2018 in terms of the reversal of this tighter monetary policy stance. there is a lot of noise in the market as of the end of last year that the central bank will cut interest rates as inflation has started moving down. we think the central bank will indeed ease in a 2018 but the easing will be gradual than the market ex-pats. yousef: we think the pakistan story has been undercovered -- why is pakis

and the biggest loser is the gcc.ich brings everybody together, we are sharing the same ethnicity, the same tribes, families together, we are interconnected as a people. there is no differences between the people themselves. now in order to have a solution, as to the solution, qatar is always willing to engage in dialogue and to understand what's behind all this, what's behind this blockade. but from their side, there's no winning in this. and you cannot solve a problem with the willingness of one party, you have to get the two parties aboard. >> do you worry that there is a possibility of a saudi invasion of qatar? >> no, there is no worry of saudi invasion or any country invasion, our country is well protected, our partnerships with our international allies like the united states is also there and we have all the means to protect our countries against any aggression. >> so you feel secure? >> we are feeling secure. >> mr. foreign minister, pleasure to have you on. g lobsts has two tails that'll fight to be your favo

the gcc was lackluster in terms of that market.he growth was not there, the emerging markets are picking up the money was flowing elsewhere. now we are starting to see improvements we see these talks improving today, they are up about 10% already. people are looking at those stories, there is a real turnaround story. it, that is looking at , there areof the fol investors trying to get in. if that goes, stock will fly at 20, 30, 40 percent. >> how much more momentum do you expect to build into the egypt reform story? we talk about investor interest around the world. haverms of yield, there been some of the best returns in the world, in terms of equity markets, are you seeing a lot more inflow than a lot more requests to allocate assets? egyptian our conference in south africa. a couple of's talks, the buzz phrase other, we thought they were very strong and they doubled in value. they have all done very well after that conference. the appetite for egypt is very strong. >> up next, south africa's president sees a new dollar after the

it is the leading delivery company for casual restaurants, growing across the gcc. added products and geographies. when the company matures, we will consider a sale. as a private equity business, we are in the business of buying and selling companies. valuation?t about how much will the sale generate? >> it will be a very profitable deal. equitya textbook private project, and it will be a profitable exit. yousef: so you will not give us a number? >> not yet. yousef: in terms of how the uae is holding up, you have your finger on the pulse in terms of retail. what is the latest? what you hearing? environment is coming back. we are very encouraged by the .ncrease 2017 was a soft year, but we feel 2018 will be a rebound on the retail side. yousef: when it comes to saudi arabia, what you planning to do there? are you deploying additional resources and funds? looking at saudi arabian are positive about the launch of new products. industries that were not there a couple of years back, we think saudi arabia will offer new investment opportunities. yousef: what would you say

bahrain.em is "b" credit, with strong backing from other gcc countries.trades wider across the curve to a lot of other single "b" fronteir -- frontier markets. given how much support we can expect them to receive, and how much they have received, it looks good. tracy: thank you so much for joining us. we can talk about corporate supply for another 10 minutes, but we have to leave it. inare going to be checking on the uae property market with the head of research for the region. put a turnaround in oil prices -- this is boomer. ♪ yousef: this is "bloomberg markets: middle east." tracy: let's go to the latest business flash headlines. janet yellen delivered a blow to one of america's largest banks. wells fargo has been banned from taking any action to boost total assets beyond their level at the end of 2017 without the fed permission. it follows consumer abuses and compliance lapses at the lender. wells fargo said after-tax profit in 2018 will be produced from $400 million to $300 million. yousef: the u.s. justice department has offered to settle its lawsui

if you look at the gcc, they thatrecognized the fact prices are at a low end is dampening economic activityo they boost the economy. it is basically by adding some fiscal stimulus. governmente the budgets this year are likely expansionary in the region. to fund those, i think they will rely more on continued borrowing. i think they will even reviewed the base of their assets. the environment is interesting at the moment. you have rising bond yields and oil prices. in some of those yields, what is standing out to you in the gulf? biggest concern this year is rising interest rates and that is the fundamental negative backdrop for the bond market. oil prices do affect the overall risk sentiment and affects the credit spread tightening. but a bulk of the credit spread tightening has already happened. so any further tightening will be marginal, and not enough to offset the interest rate rises in the u.s.. how much issuance are you expecting this year. the one thing we had from the aboutas this obsession the ability of the market to absorb a range of issues. how deep is the market at the moment?

we sell gains on the s&p and the gcc, 70% of the moving average.rabia was the standout on that stop, the most traded in dubai. and abu dhabi and a saudi arabia, both positive pictures. in saudi specifically, a move up 1.3%. petrol chemical shares moving off the positive energy from the rebound in the global markets as well. this is a little bit of a catch up for saudi stop. qatar, down 0.6%. there are a couple of buddies that really stood out and i will show you what has been happening. 84 dropped 5.4% to riuadads a share after missing the analyst estimates. the other part of the original conversation really focuses on oil because we have had more comments about what is going on with the energy conflict. brent and wti is trading higher. brent, $62.99. the commentary from the president now, from the united arab emirates, and from mr. barkindo, generally consents that what opec is doing is sufficient and there is no reason to worry about the shale surge in the u.s.. this demand can observe the supply that is coming online. also, quick note from the b

the gcc has come back into focus and in an environment where people are worried about dollar returnsies, you have in saudi arabia and the uae, kuwait, pretty bulletproof pegs. that is one pocket that looks interesting. the other extreme, three or four markets that have been through a, argentina, egypt, nigeria, the third button that is a change in the picture we have associated with those countries of the last generation, countries like pakistan and to a degree, vietnam, although that last one performed well over the last year. yousef: what about the weakening dollar? we are down a quarter of one percent. that has been an ongoing trend. if that prevails over the next few weeks and months, does that change anything in how you trade that basket? >> i don't think we are looking at a collapsing dollar. this is modest weakness compared to what we have grown used to. easier dollar an environment come i would relieve some of the pressure from three frontier markets, pakistan, kenya, oman, which has rising episodes and low levels of effects reserves. yousef: lots of insights there. alik, hea

if you look at the fiscal breakeven of the gcc, it is 61.nd as long as you are around the 60 levels, little bit -- you take out a little bit. the reason is pretty decent shape. yousef: that is what the latest bloomberg piece points to. you have saudi arabia the traditionally was a dove in these the liberations. now becoming more hard lined in its policy approach. bc underscoring -- rbc underscoring what you said. we're sticking on the show, have a lot to discuss. incredible conversations coming up. the biggest discounts. why stocks in dubai are cheaper than their counterparts in egypt? this is bloomberg. ♪ ♪ yousef: this is "bloomberg markets: middle east." we are live on bloomberg radio. let's get you a bit of the latest market action. we saw the nikkei continuing to build on early gains. driving mbs -- and csi agents. a couple of other interesting moves. this is not just a weaker dollar story. up 1/9 of 10%. the bloomberg dollar index almost flat as it stands. u.s. equity futures marginally higher. let's get you a check of the latest business flash headlines to christine harvey. ch

gcc, indexes lower. saudi arabia was an interesting story, up .25%.e of the key sectors performing. qatar up .3%. egypt, also an interesting story, as the rate cut tailwind continues. yet she has upgraded some of their calls. saudi arabia, overweight from autral from the msci on potential inclusion. let's get you a preview of what is going to come on the show. we will talk about widening out the conversation around egypt. israel signing a gas export deal with egypt changed the relationship between the former regional rivals. this is bloomberg. ♪ ♪ ♪ show me the olympic winter games ♪ ♪ like i've never seen before. ♪ ♪ xfinity x1, yeah, i always know the scor♪. ♪ triple corks in 4k... lookin' so sick. ♪ ♪ stream live on every screen, every win, every trick. ♪ ♪ 2000 hours of coverage, get your mind blown. ♪ 50 olympic channels, yup, you're in the zone. ♪ ♪ and if there's something that you want to see, ♪ pick up that voice remote and just say "show me..." ♪ experience nbcuniversal's coverage of the olympic winter games like never before with xfinity. p

i think gcc countries are a family and i'm absolutely convinced that they would address the current dispute. and in that sense we're looking forward to resolution. regarding turkish troops in qatar, they're limited on a scale was based on invitation from qatar. it's not against any other country in the region that cannot be imagined. we've played a very constructive role within nato in the past and of course we continue to remain so we have troops in afghanistan combating extremism there, you know, we did -- we went there to help united states. we are in somali through humanitarian assistance also. we were in lebanon as a part of peace keepings, we were in kosovo. so turkey's in many parts of the world. it is one of the largest player within nato and one of the largest in the world, so we're there. mostly for peace keeping. >> peacekeeping against who, though? >> no, no, i'm referring -- i'm speaking in general terms here. >> okay. >> but as far as qatar, it's on a limited scale. so i was referring more to broader, global. >> gotcha. >> presence. >> you're going to close this for us because

i think gcc countries are a family, and i'm absolutely convinced that they would address the currentdispute. and in that sense we are looking forward to resolution. regarding turkish troops in qatar, they are on a scale, was based on invitation from qatar. it's not against any other country in the region. they cannot be imagined. we played a very constructive role within nato in the past and, of course, we continue to remain so. we have troops in afghanistan combating extremism there. we did, we went there to help the united states. we are in somali, humanitarian assistance. we were in lebanon, too, again, as a part of peacekeeping. we were in kosovo. so turkey in many parts of the world. it is one of the largest players within nato and one of the largest in the world so we are there. mostly for peacekeeping -- >> against two? >> no, no, no. speaking in general terms. but as far as qatar is in a limited scale. >> you will close of this force because we told the time is up. is iran -- >> many words about every 30 question and we see many problems with iran without question. but we thi

to come and provide perspective on particularly on the gcc point of view, melissa has long worked on these issue. she's also served in government and we're lucky to have her, and last but not least our own doctor aaron stein of the center for the middle east he's an expert on turkey, he's been following this situation in syria as well, and we look forward to his comments sop so thank you to the fund for supporting our program. if you're going to tweet, please tweet at the ac iran and i'm also delighted that c-span is joining us this morning. so with that let me turn it over to you. tnches thanks barbra. [laughter] good morning and welcome to you all and it is my blood pressure pleasure to welcome our guest and -- [inaudible conversations] to this exciting panel. mike are you going to go further so launch with you and the booth -- who is in the coolest -- coolest and you will do the reentry. mike. smg well dr. once said my job to make a missile go up wherever he goes down in someone with else's department. what i wanted too was briefly talk not so much about the history of iran missil

the discord between our gcc other partners outside of qatar and especially between saudi and qatar in regards to the block, has that affected any of our operations in centcom? >> it has not had a significant impact on our military activities and we've made this very clear from the beginning we would not allow that and i think we've largely been successful in mitigating most of that. >> i yield back. >> mr. banks. >> thank you, mr. chairman. and general, thank you for being here today. can we go back to afghanistan for a moment and could you comment more specifically on how tenuous is our 39-member coalition? is it continuing to weaken or do you have more of an optimistic outlook on where our coalition is headed forward? >> i think our coalition remains very, very strong in afghanistan. you know, one of the things that underpins the, you know, the afghan president's road map for the afghan national defense security forces was the commitment made by the nato nations, the partner nations at brussels conference and warsaw, that the support would be continued. so we have seen the partner n