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- Iraq Faces Salary Liquidity Crunch; Houthi Authorities Deny Bab el-Mandeb Transit Fees; e& Unveils Careem Finances Following $100M Stake Sale to Uber
Iraq Faces Salary Liquidity Crunch; Houthi Authorities Deny Bab el-Mandeb Transit Fees; e& Unveils Careem Finances Following $100M Stake Sale to Uber
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Tuesday, August 4, 2026
Happy Tuesday everyone!
Macroeconomic liquidity pressures, Red Sea maritime transit directives, and tech corporate financial disclosures are reshaping business sentiment across regional markets. In Baghdad, government officials confirmed a severe cash crunch caused by reduced oil export revenues, raising concerns over potential public sector salary delays. In Yemen, Houthi authorities denied plans to collect transit fees from commercial ships passing through the Bab el-Mandeb strait, reassuring operators that transit support remains voluntary and free. Concurrently, UAE technology group e& published the full balance sheet and financial results of Careem Technologies after agreeing to sell a 12.5% stake back to Uber for $100 million (AED 367 million).
Markets
EGX30 | 54,094.33 | 0.35% |
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Tadawul | 10,823.62 | 1.10% |
Iraq Explores Domestic Borrowing as Oil Revenue Shortfalls Threaten Public Sector Payrolls
What Is It About
Government spokesman Haidar Al-Aboudi confirmed that Iraq is experiencing a severe liquidity shortfall, threatening timely salary payments for state employees. The cash deficit follows disruptions along primary Strait of Hormuz export routes, which restricted oil shipments and capped first-half oil revenues at $18.5 billion. With the national budget posting a $5 billion fiscal deficit early this year, the Ministry of Finance is evaluating domestic bond issuances and local credit lines to cover payroll obligations without taking on foreign debt.
Depressed Oil Revenues: State oil earnings generated only $18.5 billion during the first six months of the year due to export bottlenecks.
Widening Fiscal Gaps: Public finances registered an initial $5 billion fiscal deficit following maritime shipping disruptions.
Prioritizing Local Credit: Financial authorities plan to rely on domestic debt instruments rather than international loan facilities.
Why It Matters
Relying on public sector payrolls to sustain domestic consumer spending makes any payment delay a direct risk to local economic stability. Reduced oil revenues force the ministry to draw down cash reserves and lean heavily on domestic banks to cover short-term operational expenses. This liquidity squeeze highlights how external shipping chokepoints can quickly disrupt state finances in energy-dependent economies.
What’s Next
Finance Ministry officials will present their domestic borrowing framework to parliament for formal legislative review. Budget planners will track daily crude export volumes from southern terminals to determine if revenue streams normalize before year-end.
Drafting Debt Frameworks: Government economists will structure short-term Treasury bill sales for local commercial banks.
Monitoring Terminal Output: Energy officials will issue updated monthly export volume reports to evaluate cash flow recovery.
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Houthi Authorities Clarify Voluntary Shipping Guidance Across Bab el-Mandeb Corridor
What Is It About
Yemen's Houthi-run Humanitarian Operations Coordination Center refuted reports claiming it intended to impose transit fees on commercial vessels navigating the Bab el-Mandeb strait. Official statements emphasized that vessel tracking and routing advice remain entirely free, warning shipping companies against paying unauthorized third parties claiming to collect transit fees on the group's behalf. The clarification came as maritime tracking data showed two Saudi oil tankers successfully exiting the Red Sea, even as total daily vessel crossings eased from 28 to 18 ships over the weekend.
Why It Matters
Clearing up rumors about mandatory transit fees helps prevent additional cost spikes for global shipping operators navigating high-risk maritime routes. While daily traffic volumes remain below historical averages, the successful transit of commercial oil tankers demonstrates that energy shipments are still moving through the corridor. Unrestricted vessel passage remains critical for maintaining global supply chain schedules and containing war-risk insurance premiums for cargo ships.
Preventing Operational Costs: Avoiding unexpected transit fees prevents cargo carriers from adding secondary surcharges to global freight rates.
Stabilizing Maritime Traffic: Clear operational guidelines help commercial fleets plan transit routes through the Red Sea with greater predictability.
What’s Next
International shipping registries will monitor daily vessel crossing numbers to track whether transit volumes recover over the coming weeks. Maritime security agencies will continue issuing safety updates to commercial fleets operating in surrounding waters.
Tracking Vessel Crossings: Logistics analysts will review daily transit data to assess cargo carrier confidence levels along the route.
Updating Fleet Instructions: Shipping operators will evaluate insurance guidelines before routing additional container vessels through the strait.
e& Discloses Careem Financials Following $100 Million Stake Sale to Uber
What Is It About
Emirati technology group e& published detailed standalone financial results for Careem Technologies within its H1 2026 financial report. The disclosure follows e& signing a binding $100 million agreement to sell a 12.5% stake back to Uber, reducing its holding to 37.53% and reclassifying the asset as a discontinued operation held for sale. Careem generated AED 883.69 million ($240.6 million) in H1 revenue—a 20.4% year-over-year increase—while higher operating costs widened its H1 net loss to AED 451.61 million ($122.9 million).
Shifting Equity Control: The $100 million cash sale reduces e&'s stake to 37.53%, restoring Uber as the majority owner with 62.47%.
Expanding Revenue Lines: Careem's H1 2026 revenue rose 20.4% to AED 883.69 million, supported by growth across digital services.
Disclosing Balance Sheet Values: Total assets held for sale reached AED 2.21 billion against associated liabilities of AED 945.98 million.
Why It Matters
Publishing Careem’s complete financials gives investors their first detailed view of the super-app’s operating margins, unit economics, and cash burn rate. Selling back a controlling stake allows e& to focus capital on core telecom and tech infrastructure while maintaining upside exposure through its remaining 37.53% holding. For Uber, regaining majority ownership aligns Careem’s regional delivery and fintech platforms directly with its broader global expansion strategy.
Focusing Corporate Capital: Reclassifying the holding allows e& to reduce direct exposure to early-stage digital platform losses.
Aligning Global Mobility Platforms: Uber regains operational control to coordinate software features and delivery operations across Middle Eastern markets.
What’s Next
Upon formal deal closure, e& will account for its remaining 37.53% stake as an associate investment under the equity method rather than fully consolidating Careem's balance sheet. Both parties maintain reciprocal put and call options exercisable between December 2031 and January 2032 for the remaining shares
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🦄 World of Startups
ChatFeatured, Canada-based AI startup, raised $2M in a pre-seed funding round from BY Venture Partners (UAE/Lebanon) and other global investors
Doctorbook, Syria-based healthtech platform, raised $16K in a pre-seed funding round from a group of angel investors, valuing the startup at $200K
Carbar, Australia-based car subscription platform, is merging with Carasti, UAE-based car subscription business operating across the UAE, Saudi Arabia, Thailand, and Singapore, at a combined pre-raise valuation of $74M
Fincart, Egypt-based eCommerce enablement platform, raised $2.8M in a seed funding round
