Economy RAK outlook upgraded as hotel building steps up Ras Al Khaimah’s tourism and infrastructure projects, including the $3.9 billion Wynn Al Marjan Island resort, could strengthen the emirate’s growth prospects over the next two to three years, S&P Global Ratings said on Monday. S&P now rates RAK’s long-term outlook as “positive”, upgrading it from “stable”. The ratings agency is also forecasting that RAK’s […] October 16, 2023
Economy Saudi inflation eases but real estate buoys the index Saudi inflation eased to 1.7 percent in September, from 2 percent the previous month, but the booming real estate sector continued to push up prices. Housing rents rose 9.8 percent, including a 19.8 percent increase in apartment rents, forming “the main driver of the inflation rate in September 2023”, the General Authority for Statistics said. […] October 16, 2023
Finance Dubai’s economy expands 3.2% on buoyant Q2 growth Dubai’s economy grew 3.2 percent year on year in the first half of 2023 to AED223.8 billion ($60.93 billion), supported by a 3.6 percent expansion in real GDP in the second quarter. The positive economic performance was driven by growth in sectors such as transportation, wholesale and retail trade, financial and insurance, and real estate, […] October 16, 2023
Economy Tunisia yet to propose new terms for $1.9bn IMF loan Tunisia has not yet proposed new terms for a long-pending $1.9 billion International Monetary Fund (IMF) loan, according to the fund’s Middle East and Central Asia director Jihad Azour. Speaking at IMF-World Bank annual meetings in Morocco this week, Azour called for the elimination of “wasteful and socially unfair subsidies” before the fund’s board could […] October 13, 2023
Finance IMF trims Saudi 2023 GDP forecast but upbeat on 2024 The International Monetary Fund (IMF) has trimmed Saudi Arabia’s GDP growth forecast for 2023 to 0.8 percent from its July estimates of 1.9 percent. The downgrade reflects the kingdom’s ongoing oil policy of maintaining production cuts, including unilateral cuts and those in line with an agreement through Opec+. The IMF has been gradually lowering growth […] October 11, 2023
Finance European central bank says inflation to stay at 2% by 2025 Inflation should still land at the European Central Bank’s (ECB) target of around two percent by 2025 despite the violence in Israel weighing on commodity prices, ECB policymaker Francois Villeroy de Galhau said on Tuesday. In an interview with franceinfo radio, Villeroy said the ECB was particularly wary about oil price developments but added those […] October 11, 2023
Opinion Economy What the Riyadh Expo bid says about Saudi Arabia Bid aims to showcase and advance the kingdom's transformation October 10, 2023
Finance UAE approves federal budget of $52bn for 2024-26 The UAE government has approved AED192 billion ($52.27 billion) for the federal budget 2024-26, prime minister and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said on Monday. The 2024 budget estimates revenues at AED65.73 billion, up 3.3 percent over fiscal year 2023, and total estimated expenses at AED64.06 billion, an increase of 1.6 percent […] October 10, 2023
Finance Egypt’s bonds fight back after Moody’s downgrade Egypt’s government bonds fought back from an initial heavy tumble on Friday after Moody’s had downgraded the country’s credit rating to a new low and the head of the IMF had warned Cairo against delaying another currency devaluation. Moody’s, which had been eyeing up a possible downgrade for months, concluded the process late on Thursday […] October 8, 2023
Economy World Bank drops growth forecast for Tunisia further Tunisia’s economic growth forecast has been downgraded further by the World Bank amid concerns over the drought-hit agricultural sector, as well as uncertainties over debt financing and the weak momentum of structural reforms. In its report, Balancing act: Jobs and wages in the Middle East and North Africa when crises hit, the World Bank noted […] October 6, 2023
Economy Saudi economy will contract due to oil output cuts says World Bank The World Bank has forecast that the Saudi economy will contract by 0.9 percent this year with a budget deficit of 2 percent of GDP. This is a slightly more hawkish assessment than Saudi Arabia’s most recent estimations of an economic slowdown. Analysts and ratings agencies have been revising their assessments in light of oil […] October 6, 2023
India and UAE to expand rupee-dirham trade India and the UAE are actively exploring opportunities to expand the rupee-dirham trade, resulting in an expected five percent saving on all bilateral trade, India’s commerce and industry minister Piyush Goyal said. The two countries are also working to lower the remittances cost from the UAE to India, the state-owned Press Trust of India news […] October 6, 2023
Finance Moody’s downgrades Egypt on rising borrowing costs Moody’s Investor Service has downgraded Egypt’s credit rating to “Caa1” from “B3”, citing high inflation and rising domestic borrowing costs. The downgrade also reflects the persistence of foreign currency shortages due to increasing external debt service payments over the next two years. “An inability to arrest a further drawdown in foreign currency liquidity in the […] October 6, 2023
Trade India and UAE to discuss investment challenges Government officials from India and the UAE will hold discussions this week to address challenges impacting bilateral investments and review the trade agreement signed between the two countries last year. India’s commerce and industry minister Piyush Goyal will commence a two-day visit to the UAE on Thursday and co-chair the 11th India-UAE high-level task force […] October 5, 2023
Finance Egypt posts current account surplus as imports plunge Egypt’s current account turned to a surplus in the April-to-June quarter as imports plunged and revenue from tourism and the Suez Canal rose, its second quarterly surplus in less than a year, the central bank said on Wednesday. Egypt devalued its currency by more than half in the year to March, making imports more expensive. […] October 5, 2023
Analysis Economy UAE double digit surplus to continue until 2025 The UAE’s current account surplus will narrow this year but remain in double figures until 2025, analysts predict. It will be boosted by stronger than expected growth in non-oil exports, re-exports and tourism in the first six months of the year. The surplus will slip from nearly 15 percent last year. But experts have raised […] October 4, 2023
Economy New business in UAE increases at pre-Covid levels New orders for non-oil businesses in the UAE increased beyond pre-pandemic levels in September. The seasonally adjusted S&P Global Purchasing Managers’ Index (PMI), which measures operating conditions in the non-oil private sector, registered 56.7, rising from 55.0 in August. The index remains well above the 50.0 mark that separates economic growth from contraction. The increase, […] October 4, 2023
Finance Turkey’s inflation rate pace slows but hits high of 62% Turkey’s annual inflation rate hit 61.53 percent in September 2023, compared with 49.86 percent in the same month last year, according to the Turkish Statistical Institute. Although inflation reached a new high, the pace of increase has slowed, pointing to the positive impact of the shift in economic policymaking post-election. The month-on-month rise slowed to […] October 4, 2023
Banking & Finance Saudi turns to discounting as costs rise in Qatar and Egypt Increased competition has led Saudi Arabian businesses to embrace discounting, despite an increase in the price of raw materials and higher wages amid the rising cost of living. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) indicated that “competitive pressures” had limited sales for some businesses, resulting in a decrease in prices […] October 4, 2023
Analysis Economy Turkey’s bounced cheques, loan and card defaults soar The value of bounced cheques in Turkey is soaring as small and medium-sized enterprises grapple with resurgent inflation. Personal loan and credit card defaults are also at 2023 highs following a borrowing splurge ahead of May’s elections. Veteran leader Recep Tayyip Erdoğan had pushed state-owned banks to expand lending in the run-up to the parliamentary […] October 3, 2023
Economy Telecoms and transport drive Bahrain’s non-oil growth Bahrain’s non-oil sector grew to 82.9 percent of the kingdom’s GDP in the second quarter of this year, driven by sharp increases in the transport and telecommunications industries. Bahrain’s GDP was up 2 percent in Q2. This included a 2 percent increase in the non-oil sector and a 2.2 percent rise in oil-related activities, according […] October 3, 2023
Analysis Economy Egypt’s investment rules need to be clearer, analysts warn Egypt has long struggled to attract foreign investors, in large part because of concerns about its investment rules. The need to allay potential investors’ fears is becoming ever urgent, as the country’s foreign currency shortage intensifies. Net foreign assets hit a record deficit of EGP837.3 billion ($27.09 billion) in June. Last month, rating agency Capital […] October 3, 2023
