Category Archives: Country

GCC SOE Dominance: Misalignment of Incentives and Economic Value Destruction

Looking at the current return on capital profiles for the GCC countries, a few things become abundantly clear: 1) overall GCC aggregate return on capital (7.5%) is now firmly below the blended cost of capital (7.7%), suggesting that based on the latest quarter performance, the GCC in aggregate is generating negative economic value-added, 2) withContinue reading “GCC SOE Dominance: Misalignment of Incentives and Economic Value Destruction”

Iraq – Tragedy to Catharsis?

Note to Readers: For a better viewing of charts, please right click the chart image and open as a new window to view in full resolution. “Iraq reminds me of a classic Shakespearean tragedy – whenever you think things just can’t get any worse, the plot surprises you by taking yet another major step down.”Continue reading “Iraq – Tragedy to Catharsis?”