The World Bank estimated remittance inflows to Arab countries at $61.9bn in 2018, constituting an increase of 9.1% from $56.7bn in 2017, compared to a contraction of 13.4% in 2016 and an increase of 11.5% in 2017. It attributed the rise in remittances to the Arab region mainly to a growth of 17% in remittance flows to Egypt last year. Further, it said that inflows to Arab countries accounted for 9% of global remittance flows and for 11.7% of remittances to developing economies in 2018. The Arab region ranked as the third smallest recipient among developing markets, ahead of only Europe & Central Asia (11.2%) and Sub-Saharan Africa (8.7%). Also, the Bank estimated the increase in remittance inflows to Arab countries in 2018 to be the second smallest among developing economies, after only East Asia & Pacific (+6.7%). In parallel, it indicated that Egypt was the largest Arab recipient of remittances with $28.9bn or 46.7% of the total in 2018, followed by Morocco with $7.38bn (11.9%), Lebanon with $7.2bn (11.6%), Jordan with $4.37bn (7.1%), Yemen with $3.35bn (5.4%), Palestine with $2.56bn (4.1%), Tunisia with $2.03bn (3.3%), Algeria with $1.93bn (3.1%) and Syria with $1.62bn (2.6%); while the remaining seven Arab countries were the recipients of $2.56bn in remittances, or 4.1% of the total. Remittance inflows to Palestine were equivalent to 17.7% of GDP in 2018, the highest in the region, followed by Lebanon at 12.7% of GDP, Yemen at 11.7% of GDP, Egypt at 11.6% of GDP and Jordan at 10.4% of GDP. When excluding Syria, remittance inflows to Arab countries were equivalent to about 2.8% of the region's GDP last year. 
Source: World Bank, Byblos Research

Figures compiled by Citi Research show that emerging markets (EMs) issued $167bn in external sovereign and corporate bonds in the first quarter of 2019, down by 8.7% from $183bn in the first quarter of 2018. The debt issued in Asia excluding Japan reached $76bn or 45.5% of the total, followed by bond issuance in the Middle East & Africa (ME&A) with $42bn (25.1%), Emerging Europe with $30bn (18%), and Latin America with $20bn (12%). Further, EM corporates issued $103bn in bonds in the covered period, equivalent to 61.7% of total sovereign and corporate bond issuance. Asia ex-Japan issued $69bn, or 67% of total corporate issuance in the first quarter of 2019, followed by Latin America with $12bn (11.7%), and each of Emerging Europe and the ME&A region with $11bn (10.7% each). Also, EM sovereigns issued $64bn in bonds, or 38.3% of new sovereign and corporate bonds, in the covered period. The ME&A region issued $31bn, or 48.4% of total new sovereign bonds, followed by Emerging Europe with $19bn (29.7%), Latin America with $8bn (12.5%) and Asia ex-Japan with $7bn (10.9%). In parallel, Citi projected the upcoming EM's sovereign external debt service payments at $24.1bn between March and May 2019, of which $7.9bn or 32.8% of the total, would be from Latin America, $6.6bn (27.4%) from the ME&A region, $5.1bn (21.2%) from Emerging Europe and $4.5bn (18.7%) from Asia ex-Japan. It expected upcoming EM corporate external debt service payments at $40.4bn over the same period, of which $25.4bn, or 63% of the total, would be from Asia ex-Japan, $6.5bn (16.1%) from Emerging Europe, $4.5bn (11.1%) from Latin America, and $4bn (10%) from the ME&A region.   
Source: Citi Research, Byblos Research

Figures released by the Central Bank of Iraq (CBI) indicate that the Iraqi banking sector is stable, with sound liquidity levels and a stable depositor base. The ratio of private sector deposits at banks to broad money supply M2 increased marginally from 27.6% at the end of September 2017 to 27.8% at end-September 2018. Also, the ratio of currency in circulation to M2 declined from 46.2% at the end of September 2017 to 43.2% at end-September 2018. In parallel, the sector's loans-to-deposits ratio stood at 50.9% at the end of September 2018, below the CBI's ceiling of 70%, and which reflects the banks' sufficient liquidity to weather sudden deposit withdrawals. Further, the banks' return on assets rose from 0.42% in the third quarter of 2017 on an annualized basis to 0.53% in the third quarter of 2018, while their return on equity declined from 5.41% in the third quarter of 2017 on an annualized basis to 4.36% in the third quarter of 2018, due to a rise in the banks' capital levels. Also, the non-performing loans (NPLs) ratio increased from 8.8% at end-September 2017 to 12.4% at end-September 2018, while NPL provisions declined from 74.8% at end-September 2017 to 71.8% at end-September 2018. The CBI indicated that banks should increase their provisions in order to improve their coverage of NPLs and protect the banking system from default events. 
Source: Central Bank of Iraq, Byblos Research