Economy Cairo and Istanbul feel biggest cost of living squeeze Dubai has become the most expensive city in the Middle East for expatriate workers, while Cairo and Istanbul were among the cities that saw the biggest rise in the cost of living this year, as soaring inflation impacted wages. Dubai, the UAE’s largest city, saw rental prices rise by about a fifth in the last […] June 18, 2024
Economy Saudi housing costs rise but inflation remains steady Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […] June 17, 2024
Analysis Economy Egypt shows signs of recovery after landmark IMF deal Last Friday marked 100 days since Egypt, the International Monetary Fund’s (IMF) second-biggest debtor after Argentina, agreed its latest loan. Eased by a $35 billion development deal with the UAE and increased international concern for Egypt’s economic stability following the outbreak of the war in Gaza, the deal drew a line under more than two […] June 17, 2024
Opinion Economy Modi’s coalition era: a new chapter for Gulf ties? The BJP must now share power, potentially complicating relationships with crucial partners like the UAE June 17, 2024
Agriculture Drought pushes up sheep price for Eid in Morocco The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […] June 17, 2024
Economy UAE to invest in Turkey’s economic sectors says minister The UAE is willing to invest across numerous sectors in Turkey, said Emirati energy and infrastructure minister Suhail Al Mazrouei. The Gulf state is exploring opportunities in the energy, agriculture, transportation, tourism and other sectors, state-run Anadolu Agency (AA) news agency reported, citing the minister on the sidelines of the St. Petersburg International Economic Forum. […] June 16, 2024
Opinion Banking and Finance Bahrain’s fiscal discipline bodes well for its capital markets Banking and finance now contributes 17 percent of the country's GDP June 12, 2024
Employment Unemployment rate falls in Turkey but warnings persist Turkish unemployment levels fell to their lowest rate in more than 11 years in April, helped by strong first-quarter growth. However, troubling longer-term prospects could mean job queues lengthen again. Turkey’s headline unemployment rate, covering those aged 15 and over, fell to 8.5 percent in April, the lowest since November 2012 and down from 10 […] June 11, 2024
Analysis Finance Egypt confronts sell-off of more state assets More sales of Egyptian state assets from petrol stations to wind farms are likely to be announced in the financial year to June 2025, according to people familiar with the negotiations. A deal with the UAE worth $35 billion to develop a resort at Ras El Hekma on the Mediterranean has eased the pressure on […] June 11, 2024
Economy Egypt inflation drops below 30% for first time in 15 months Egypt’s inflation rate dropped below 30 percent in May for the first time in 15 months, slowing at a faster rate than most had predicted. Urban consumer price inflation was 28.1 percent year on year for May, a drop from 32.5 percent in April, the Central Agency for Public Mobilisation and Statistics announced on Monday. […] June 11, 2024
Trade Suez Canal revenues and traffic fell in May Suez Canal revenues continued to decline in May because of instability in the Red Sea, according to Egyptian media. Revenues fell 64.3 percent year on year to $337.8 million. Last month 1,111 individual ships passed through the canal – down 54 percent on the May 2023 figure of 2,396. Finance minister Mohamed Maait said last […] June 10, 2024
Opinion Economy Russia’s resilient economy means war is the ‘new normal’ Putin’s recent hubris has caused some in the West to think again about the efficacy of its sanctions package June 10, 2024
Economy Saudi Arabia GDP contracts but non-oil growth rises Saudi Arabia’s economy contracted by 1.7 percent year on year in the first quarter of 2024 due to ongoing oil production cuts, but non-oil growth was up 3.4 percent in the same period, according to adjusted figures released this week. Last week Opec+ agreed to extend its existing crude output cuts into 2025 in a […] June 10, 2024
Finance Opec+ output cuts weigh on Kuwait’s economic growth Kuwait’s real GDP is expected to shrink by 2.3 percent in 2024 as a result of Opec+ production cuts, S&P said in a report. Economic growth is predicted to be 2.4 percent per year from 2025 to 2027 as oil production restrictions ease slightly and the pace of huge government investment projects accelerates. NewsletterGet the […] June 10, 2024
Economy Kuwaiti businesses struggling to meet demand as orders surge Businesses in Kuwait have accumulated huge backlogs of work and will need to increase capacity and staff levels to meet customer demand, according to ratings agency S&P Global. The monthly purchasing managers’ index (PMI) report for Kuwait revealed companies strengthened employment levels in a bid to satisfy “sharp and accelerated increases in new business” throughout […] June 7, 2024
Economy Abu Dhabi launches unified economic licences Abu Dhabi has unified procedures for registering economic licences across the emirate and its free zones, in a bid to make it simpler to set up a business and increase non-oil trade. The unified economic license is an initiative by Abu Dhabi Department of Economic Development (Added) and Abu Dhabi Free Zones Council. The new […] June 7, 2024
Economy Turkish court rules president cannot sack central bank chief A ruling by Turkey’s highest court striking down the president’s authority to dismiss the head of the central bank is being downplayed by Turkish officials. President Recep Tayyip Erdoğan has sacked the governor of the central bank five times in the past five years. Turkey’s justice minister has insisted the Constitutional Court’s decision did not invalidate […] June 6, 2024
Banking and Finance Stable lira and bonfire of red tape help Turkish banks Turkish banks are under less operational pressure thanks to a more stable lira, simpler rules and policymakers’ swing back towards economic orthodoxy, Fitch said on Wednesday. Analysts at the credit rating agency warned that rising funding costs would compress lenders’ net interest margins, however. Fitch has raised its long-term foreign-currency issuer default ratings for 18 […] June 6, 2024
Economy Egypt’s business activity rises as inflation pressure falls A softening of inflationary pressures and an increase in the availability of foreign exchange helped improve business activity and confidence in Egypt in May, according to central bank data and an influential survey. But experts warned that government austerity measures, including a rise in the politically sensitive prices of bread and petrol, may dampen business […] June 5, 2024
Trade What Modi must do for India-UAE relationship to thrive While Narendra Modi claims a rare third term as India’s prime minister, a raft of issues must be addressed for economic relations with the UAE to thrive. Despite the strong foundations laid, experts highlight ongoing concerns such as bureaucratic red tape, protectionism, sluggish investment and trade growth. The Modi-led Hindu nationalist Bharatiya Janata Party won […] June 5, 2024
Analysis Economy Saudi new mortgage approvals rebound A greater supply of affordable housing and a growing resignation among prospective house buyers that interest rates are unlikely to fall substantially is helping to propel a rebound in new residential mortgages in Saudi Arabia. Under Vision 2030, Saudi Arabia set a target to increase home ownership among the kingdom’s adult citizens to 60 percent […] June 5, 2024
Analysis Economy 642 million votes counted … now India can get back to business Narendra Modi has claimed victory in India’s election – and many in the Gulf will be delighted at the prospect of a third Modi term. The prime minister’s pro-business credentials and economically liberalising tendencies remain credible, if battered, after 10 years in office. His Bharatiya Janata Party did not perform as well as expected, however, […] June 5, 2024
