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Economy

Economy and markets news from the Middle East. All the important stories, exclusive interviews, plus authoritative opinion and analysis

Technicians working for Otokar, a maker of heavy commercial and military vehicles, on the production line at a factory in Sakarya, Turkey

Turkish manufacturers buoyed by rise in PMI

Turkish producers are cautiously optimistic after the Turkey Production Managers Index (PMI), which measures the outlook of the country’s manufacturing sector, returned to positive territory in February. According to the latest report issued by the Istanbul Chamber of Commerce and Standard and Poor’s, this is the first increase after seven straight months of contraction.  The […]

A woman walks past street art in Beirut. About 80% of Lebanon's 5m people now live in poverty

Lebanon pushed to the brink by the war next door

Four months of near-daily airstrikes and shelling on the southern border of Lebanon, which was already reeling from a four-year economic crisis, have taken their toll on the country’s economy. Analysts warn that Lebanon’s vulnerability means a serious escalation of fighting could wipe out half of GDP. Output has plummeted and, according to the World […]

Asked about reports the IMF loan could rise to $12bn, managing director Kristalina Georgieva said: 'There is nothing wrong in thinking big'

IMF expects bigger loan deal for Egypt within weeks

The International Monetary Fund expects a financing package for Egypt to be finalised within weeks, its chief said on Tuesday – while also entertaining speculation that the loan could rise to $12 billion. Speaking on the sidelines of a G20 finance meeting in Brazil, IMF managing director Kristalina Georgieva told Reuters that issues delaying the […]

A market worker in Cairo stands under a pro-President Sisi banner. The ADQ deal has raised hopes that Egypt's economy can rebuild

Abu Dhabi’s $35bn throws Egypt a liquidity lifeline

A $35 billion investment by Abu Dhabi sovereign wealth fund ADQ to develop a resort on Egypt’s north coast could cover the country’s liquidity needs for the next three to four years, analysts have said. Mostafa Madbouly, the Egyptian prime minister, said on Saturday he had signed an agreement with ADQ to develop a site […]

Turkish Central Bank governor Fatih Karahan. The bank had 550 tonnes of gold in its vaults in mid-February

Turkey stockpiles gold as it combats current account deficit

Turkey’s central bank has raised its gold bullion reserves to record levels while limiting sales to the public, as the government attempts to rein in the nation’s current account deficit.  The central bank, the Türkiye Cumhuriyet Merkez Bankası, based in Altındağ, Ankara, had more than 550 tonnes of gold in its vaults as of February […]

Indian prime minister Narendra Modi and Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum inaugurate Bharat Mart, a market and trading platform for Indian businesses in Dubai

Dubai introduces multiple-entry visa for Indian nationals

Dubai has introduced a five-year multiple-entry visa for Indian nationals to strengthen economic, tourism and business ties with India, the Dubai Department of Economy and Tourism (DET) has said. The decision follows closely on the heels of prime minister Narendra Modi’s visit to the UAE, marked by significant developments including the opening of the Middle […]

Bahrain investments Manama skyline

Financial services help Bahrain to record $1.7bn in investments

Bahrain attracted more than $1.7 billion in investments last year through its government-backed investment company. The financial services sector was the main driver. The figure, released by the Bahrain Economic Development Board, was 55 percent up on 2022. The investments covered 85 local and international projects, which are forecast to create 5,700 jobs in Bahrain […]

A man pushes a shopping cart near a screen showing the exchange rate of Lebanese pound to U.S. dollars inside a supermarket in Beirut, Lebanon March 9, 2023. REUTERS/Mohamed Azakir

Lebanon’s EDL harnesses the power of ‘dollarisation’

Lebanese citizens will soon be able to pay their electricity bills in US dollars as the unofficial “dollarisation” of the nation’s economy continues. The decision by Électricité du Liban (EDL) to allow customers to choose to pay their bills in USD instead of Lebanese lira was ratified by the electricity provider’s board of governors this […]

Saudi Arabia needs to take control of its deficit and create a 'strong regulatory framework' to garner international confidence, minister of finance Mohammed al-Jadaan has said

Saudi reforms needed to attract investment and lower deficit

Saudi Arabia must reduce its budget deficit and speed up its regulatory reforms if it is to remain competitive in a tight global market, its finance minister told a conference in Riyadh this week.  The country needs to get “the budget deficit down to 2 percent (of spending) or less than that, that’s how a […]

Turkey's overall unemployment rate stands at 8.5%, although for women it is 11.3%

Turkey says inflation will fall by second half 0f 2024

Turkey’s measures to curb inflation will prove effective and begin to decline in the second half of this year, Daily Sabah newspaper reported, citing treasury and finance minister Mehmet Şimşek’s speech at the Turkey-Saudi Arabia Investment and Business Forum in Istanbul. “We will not do anything extraordinary to reduce inflation; conventional monetary policies will be […]

Person, Worker, Device The construction sector has been a particular focus of the Saudi government's attempt to drive out corruption man with hammer on construction site

Saudi’s ‘whistleblower law’ to bolster anti-corruption drive

Saudi Arabia has ramped up its public anti-corruption measures in recent weeks, in a further effort to attract foreign investment and shore up its massive economic reform programme.  On February 13 cabinet approved a new law intended to protect whistleblowers, a week after the General Authority for Endowments said it would give a reward of […]

Workers at an Aramco facility. Saipem had annual average orders of $1.6bn from Aramco between 2021 and 2023

Saudi 2023 budget deficit at $22bn as oil revenue dips

Saudi Arabia recorded a budget deficit of SAR81 billion ($21.6 billion) in 2023 in line with expectations, as expenditure increased against a backdrop of falling oil revenue, the finance ministry said on 15 February. Total expenditure increased by 11 percent annually to SAR1.3 trillion last year, as revenues reached SAR1.2 trillion, according to data released […]

Saudi foreign reserves minister of finance Mohammed al Jadaan

Saudi foreign reserves fall 5% as oil revenue drops

Saudi Arabia’s international reserve assets fell 5 percent in value year on year in 2023, after oil output cuts that hit GDP had only limited success supporting prices.  Central bank figures show total reserve assets were at SAR1.6 trillion ($437 billion), from  SAR1.7 trillion in January 2023, when the government was embarking on a policy […]

Egyptian Prime Minister Mostafa Madbouly speaks during the World Governments Summit in Dubai

Egypt’s 144 reforms propelled private sector says Madbouly

The Egyptian government has implemented 144 reforms since May 2022 to support the private sector and attract foreign and local investors, according to Prime Minister Mostafa Madbouly. More than 1,000 private sector companies are participating in state-run programmes to boost the Egyptian economy and promote private sector engagement, Egypt Today newspaper reported, citing Madbouly in […]

Egyptian finance minister Mohamed Maait. Details on potential Gulf bond issuances have yet to be provided

Egypt says Gulf bond issuances still under review

Egypt is still evaluating the issuance of bonds in the Gulf markets as part of its broader strategy to diversify funding sources, according to finance minister Mohamed Maait. Cairo has issued debt instruments in three tranches in November and December 2023 worth $1.5 billion, the minister told the UAE state-run Wam news agency on the […]

Stunted GDP growth 'is largely due to short-term cuts in oil production' said IMF chief Kristalina Georgieva

IMF chief says oil cuts weigh on Mena GDP growth  

Gross domestic product (GDP) growth for the Middle East and North Africa (Mena) is expected to reach 2.9 percent in 2024, which is higher than last year, but still below October 2023 projections, International Monetary Fund (IMF) managing director Kristalina Georgieva said. “This is largely due to short-term cuts in oil production, the Gaza-Israel conflict, […]

OECD rates UAE’s free zone corporate tax ‘non-harmful’

The UAE free zone corporate tax (CT) regime has been recognised as ‘non-harmful’ by the Paris-based policy forum Organisation for Economic Co-operation and Development (OECD), the Gulf state’s finance ministry said. The findings were disclosed in the results from an October 2023 meeting on harmful tax practices, the UAE state-owned Wam news agency reported. The […]