Economy Egypt’s GDP growth likely to slip to 4.2% in 2022/23 fiscal year Egypt’s economy is expected to grow 4.2 percent in the current fiscal year ending in June, the cabinet said, much less than previously forecast. Gross domestic product grew by 3.9 percent in October-December, the second quarter of the fiscal year, while the unemployment rate fell to 7.2 percent, the statement said. Economic growth slowed from […] March 15, 2023
PIF maps out plans to boost Saudi private sector Saudi Arabia’s Public Investment Fund has launched a package of initiatives aimed at increasing involvement by local businesses in its portfolio activities. The three moves announced on Tuesday include the official launch of PIF’s Local Content Growth programme – known as Musahama – which aims to increase the share of local spend in the sovereign […] March 14, 2023
Economy Iraq cabinet approves 2023 draft budget of $136bn Iraq’s cabinet has approved a 2023 draft budget of 197.828 trillion Iraqi dinars ($135.6 billion), Prime Minister Shia Al-Sudani said. The deficit is estimated to come to 63 trillion dinars in the new budget, he added. The draft budget will be referred to parliament for approval. In February, Iraq’s central bank said it plans […] March 14, 2023
Finance Iran-Saudi deal offers hope for increased Middle East stability The immediate economic impact of renewed relations between Saudi Arabia and Iran is expected to be minimal, but the agreement brokered by China is likely to have far reaching ramifications for the wider Middle East region, according to economists. The two countries agreed to re-establish ties after four days of talks last week in Beijing. […] March 13, 2023
Economy Saudi Arabia reports 5% increase in GDP Saudi Arabia’s GDP increased by 5.5 percent year-on-year in the fourth quarter of 2022, according to the latest figures from the kingdom’s General Authority for Statistics. Growth was fuelled by a 6.2 percent annual increase in non-oil business activity, while oil grew 6.1 percent and government activity 2.9 percent. UAE minister predicts 2.8% GDP trade […] March 12, 2023
Economy Britain’s finance minister flags back-to-work incentives in budget Finance minister Jeremy Hunt will set out measures to boost Britain’s workforce next week, by offering financial incentives in his budget for parents with young children, disabled people and others to rejoin the workforce. Britain has a chronic labour shortage that is dragging on its economic performance. Foreign workers left the country en masse over […] March 12, 2023
Economy UAE edging closer to trade deals with Kenya, Georgia and Ukraine The UAE is close to signing new free trade deals with Kenya, Georgia and Ukraine, while a third round of discussions on a GCC-wide agreement with the UK are set to get under way in Riyadh on Sunday. It follows the recent signing of a comprehensive economic partnership agreement (Cepa) with Turkey earlier this month. […] March 10, 2023
Economy Emerging countries to suffer most if Fed rate hits 6% Emerging markets are facing their demons as traders mull whether US Federal Reserve interest rates will rise as high as 6 percent, a level that could kick weaker countries when they’re down, while diverging global growth paths and China’s reopening might cushion some of the blow for the bigger ones. Expectations for where the Fed’s […] March 10, 2023
Economy Egypt’s core inflation hits record high of 40.3% in February Egypt’s official annual headline inflation rate leapt in February to a higher-than-expected 31.9 percent, its highest in five and a half years, while core inflation skyrocketed to a record 40.26 percent, according to official data. The soaring inflation follows a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and […] March 10, 2023
Economy Saudi Arabia posts budget surplus of $27.68bn in 2022 Saudi Arabia recorded a budget surplus of SAR103.9 billion ($27.68 billion) in 2022, beating its own estimates, as higher oil prices boosted government revenues by 31 percent, according to finance ministry data. The world’s top oil exporter recorded real GDP growth of 8.7 percent in 2022 leading to the Gulf state’s first budget surplus in […] March 10, 2023
Economy Israeli fintech to wire $500m out of country over judicial overhaul Israeli financial technology firm Riskified is transferring $500 million out of the country, joining private sector opposition to the government’s planned overhaul of the judicial system. CEO Eido Gal shared the decision with employees in a letter and voiced concerns that the proposed changes to the court system, if ratified, could lead to a “prolonged […] March 9, 2023
Economy Turkey’s current account forecast to hit $43.5bn in 2023 Turkey is expected to record a current account deficit of $10 billion in January on the back of gold imports, a Reuters poll showed, while the deficit was seen at $43.5 billion in 2023. In a Reuters poll, the median estimate of 11 economists for the current account deficit in January was $10 billion, with […] March 9, 2023
Economy Fed’s Powell sets table for higher and possibly faster rate hikes It is likely the US Federal Reserve will need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation, Fed chair Jerome Powell told lawmakers. “The latest economic data have […] March 8, 2023
Economy Moody’s warns judicial reforms may impact Israel’s credit rating Moody’s Investor Service has warned that the Israeli government’s planned judicial reforms could weaken institutions and could negatively impact Israel’s sovereign credit profile. In its statement, Moody’s did not downgrade Israel’s A1 positive credit rating and did not walk back the positive outlook it assigned in April 2022 that was driven by solid government finances. […] March 8, 2023
Economy New Qatari PM takes helm as business activity bounces back Business activity in Qatar rebounded in February, recording its highest month-on-month growth since the country lifted its Covid lockdown. The Qatar Financial Centre purchasing managers’ index (PMI) – released one day before the cabinet reshuffle that elevated Sheikh Mohammed bin Abdulrahman Al Thani to prime minister – hit 51.9 in February, up 6.2 points from […] March 7, 2023
Economy UAE and Italy elevate trade status in bid to grow $7bn relationship The UAE and Italy have elevated relations to the level of a strategic partnership as the countries aim to build on growing trade figures seen last year. The announcement came after a meeting held on Saturday between President Sheikh Mohamed bin Zayed Al Nahyan and Italy’s Prime Minister Giorgia Meloni in Abu Dhabi during her […] March 7, 2023
Dubai firms head to Central Asia to build trade relationships A delegation of business leaders from Dubai will be heading to Central Asia next week to build on a non-oil trade relationship worth more than $2.4 billion. Dubai International Chamber said the first New Horizons trade mission – a new initiative to drive international expansion of its members to new markets – will focus on […] March 6, 2023
Economy Saudi Arabia to offer ‘tax relief’ to firms relocating regional HQs Saudi Arabia is likely to offer tax relief to multinationals that choose to relocate their regional headquarters to the kingdom in 2023, according to Minister of Investment Khalid Al-Falih. These companies are aiming to secure “lucrative” government contracts. “It is business as usual for them in Saudi Arabia and outside Saudi Arabia,” The Financial Times […] March 6, 2023
Economy Kuwait re-appoints Sheikh Ahmad Nawaf Al-Sabah as prime minister Kuwait’s crown prince re-appointed Sheikh Ahmad Nawaf Al-Sabah as prime minister and asked him to nominate a cabinet, state news agency Kuna reported, more than a month after the government resigned due to renewed friction with parliament. A long-running standoff between the government and the elected parliament has hampered efforts by the wealthy Gulf Arab […] March 6, 2023
Economy Europe to face high core inflation in near term, says Lagarde The European Central Bank (ECB) has already raised rates by three percentage points since July and essentially promised another half a percentage point increase on March 16, but investors have recently speculated on an even bigger move given poor inflation data. ECB president Christine Lagarde said the flagged increase is now “very very likely,” but […] March 6, 2023
Economy Saudi Arabia’s non-oil business activity hits eight-year high Saudi Arabia’s non-oil business sector activity soared to its highest level in eight years in February, based on a strong increase in demand and an optimistic economic outlook. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index jumped to 59.8 in February, from 58.2 the previous month, the fastest rate of increase since March […] March 6, 2023
Economy How deep are Egypt’s economic woes? Egypt’s economy has come under severe pressure over the past year, with the Egyptian pound tumbling, foreign currency drying up, and inflation soaring. Some of the causes date back decades, such as failed industrial development and export policies that created a persistent trade deficit. An over-valued currency, weak property rights and institutions, and an overbearing […] March 6, 2023
