He remarked that the reason for that evidence from other countries being affected by US sanctions suggests that it may take a long time for the sanctions on Russian oil to disappear. When asked about the volatility of oil prices, Bolliger said it’s fair to assume that at least for the next couple of quarters, “we will see higher oil prices than what was assumed in their forecast three or six months ago.” “You look at the Saudi stock market and the region more broadly, and you see asset prices obviously starting to reflect the benign environment,” added Bolliger. He underlined that this movement has become a significant tailwind for this year and probably even for the medium to longer term. “And then we had the situation in Ukraine which added another leg to this development, and energy prices saw another move higher.” “We saw already before the war in Ukraine that limited supply growth started to influence energy prices,” he said. That, of course, he said benefits the energy sector as well in combination with ongoing and probably growing restrictions on the supply side.īolliger pointed out that people simply didn’t invest in oil facilities for quite a while now. “By and large, the world has become a lot freer in terms of people’s movements, which means there’s a greater ability for consumers to spend and the service sector specifically to do well,” explained Bolliger. Talking about the global context where energy prices are being supported by the global economy coming out of the pandemic, the UBS CIO said he sees the reopening trend accelerating.

We see various projects now gaining shape and accelerating,” added Bolliger. “There are important things happening, specifically around Vision 2030.

This distinction is manifested in the recent divergence of sovereign bond spreads of the importers and exporters.”Īsked about the outlook for the Gulf Cooperation Council, he said this is an interesting point in time for the GCC and certainly for Saudi Arabia as well. “However, they are a boon to oil exporters from the Gulf region. “Higher commodity prices are a challenge to importers like Turkey, Egypt and India, as their external balances worsen,” he said. The war in Ukraine, according to him, has brought to light the high degree of differentiation among emerging markets. RIYADH: As the world faces significant geopolitical and economic unpredictability, Michael Bolliger, chief investment officer for emerging markets at UBS Global Wealth Management, told Arab News in an exclusive interview how the market responded to this uncertainty cocktail.

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