Analysis Economy Lebanon needs more than US rate cuts to turn its economy around Probable US interest rate cuts could help Jordan and Morocco attract additional foreign investments as well as easing their already manageable loan repayment commitments, experts predict, but Lebanon’s financial problems remain so acute that a reduced debt burden will make little difference. US 10-year treasury yields – the most important determinant of government borrowing conditions […] April 9, 2024
Analysis Economy Egypt will still feel the heat despite US rate cuts Likely US interest rate cuts will lower Egypt’s interest repayment costs on its vast public debts. But this will do little to ease pressure on the country to sell national assets in order to reduce its overall borrowings. Egypt’s public external debt – money borrowed in foreign currencies – was $110 billion in 2022, having […] April 5, 2024
Economy Lebanon PM to declare ‘agricultural disaster zone’ in south Lebanon’s caretaker prime minister Najib Mikati is to declare the south of the country an “agricultural disaster zone” as the conflict in Gaza batters Lebanon’s beleaguered economy. Speaking at a cabinet meeting on Thursday, Mikati called for “immediate assistance” from UN agencies and Lebanon’s international partners to help the country overcome the impact of a […] April 5, 2024
Analysis Finance China and US vie for FDI supremacy in Gulf’s biggest economies China and the United States invested more than $23 billion in projects in the Gulf’s two biggest economies last year. The US more than doubled its “greenfield” foreign direct investment in the UAE to nearly $4 billion, while China’s commitment to Saudi Arabia rose 10-fold to almost $17 billion. Greenfield FDI involves a foreign entity […] April 5, 2024
Economy Turkey’s inflation rises to 68.5% on education costs Turkey’s annual inflation rate increased to 68.5 percent in March, beating the 67.07 percent recorded a month earlier, official data showed. The biggest monthly rise was in education, which rose by more than 13 percent, followed by communication, up almost 6 percent, The Turkish Statistical Institute said. Food and non-alcoholic beverages, housing, and hotels, cafes […] April 4, 2024
Opinion Economy Economic diversification is the GCC’s top priority Saudi Arabia has taken great steps to diversify its economy – Kuwait must follow suit April 3, 2024
Finance Egypt’s Sisi vows continued development in new term Egyptian President Abdel Fattah El-Sisi was sworn in for his third term on Tuesday in the country’s new capital, the largest of the mega-projects that have come to symbolise his rule while stretching the country’s finances. Speaking at the new parliament building, Sisi highlighted the challenges Egypt withstood in recent years while promising continued development, […] April 3, 2024
Economy Turkey’s central bank aims for disinflation in H2 2024 Turkey will see disinflation in the second half of the year, the Turkish central bank governor Fatih Karahan has reiterated. Ankara will maintain tight monetary conditions that will significantly lower the monthly inflation trend, he said at a meeting with the Turkish Banks Association management. “Our determined stance on monetary policy will enable us to […] April 3, 2024
Economy Saudi-listed companies’ total profits tumble by 17% The total profits of Saudi-listed companies fell 17 percent year on year to SAR126.8 billion ($33.8 billion) in the fourth quarter of 2023, research has found. The drop has been attributed to the country’s economic contraction as oil production cuts continue. But sectors such as banks, insurance, transport and pharmaceuticals showed improvement in Q4, reflecting […] April 2, 2024
Opinion Economy In the Gulf, the age of the petrodollar will not be ending soon GCC currency pegs have provided stability for 40 years. The dollar remains the best bet for oil exporters April 2, 2024
Economy Dubai business licences to get the ‘golden’ touch Dubai is exploring enhancements to its long-term business licensing scheme, offering “golden” licences to entice more investors and business owners to set up in the emirate, company formation experts have told AGBI. Long-term licences in the emirate, including decade-long options, have been primarily available in select free zones. But plans are in motion to extend […] April 2, 2024
Economy UAE economy to grow 4.2% in 2024, says central bank The UAE’s gross domestic product (GDP) is expected to expand by 4.2 percent in 2024, further growing to 5.2 percent in 2025, the Central Bank of the United Arab Emirates (CBUAE) said in its quarterly economic review. The bank maintained its estimate for 3.1 percent growth in 2023. Non-oil GDP growth is forecast to reach […] April 2, 2024
Economy Erdoğan election blow poses questions for Turkey’s economy Turkey’s opposition has dealt the ruling bloc of President Recep Tayyip Erdoğan a resounding blow in municipal elections – a result that could have a significant impact on the country’s economy. The Republican People’s Party (CHP) won more than 38 percent of the popular vote on March 31, compared to 36 percent for Erdoğan’s Justice […] April 2, 2024
Economy S&P revises Oman’s outlook to positive Global rating agency S&P has revised its outlook on Oman to “positive” from “stable”, driven by the government’s strong fiscal position. The revision was further supported by expectations that the economic reform programme in the sultanate would lead to faster-than-expected deleveraging in many state-owned enterprises, without dampening economic growth. This will strengthen the economy’s resilience […] April 1, 2024
Economy IMF to release $820m from Egypt $8bn loan programme Egypt will be able to immediately draw $820 million after the executive board of the International Monetary Fund (IMF) approved the expanded $8 billion financial support programme. “Egypt is facing significant macroeconomic challenges that have become more complex to manage given the spillovers from the recent conflict in Gaza and Israel,” IMF chief Kristalina Georgieva said in a statement. […] March 31, 2024
Finance Egypt’s population growth rate hits 50-year low Egypt, the most populous Arab nation in the world, has seen its population growth rate decline by 1.4 percent in 2023, reaching its lowest level in half a century. The rate fell by 46 percent from 2017 to 2023, Ahram Online reported, quoting planning and economic development minister Hala El-Said. The birth rate reached two […] March 29, 2024
Economy Saudi FDI inflow up but still far short of target The net inflow of foreign direct investment into Saudi Arabia was just over SAR13 billion ($3.5 billion) in the fourth quarter of 2023, up 16 percent on the previous period, government data said this week. The data, released by the General Authority for Statistics, puts the total net inflow for 2023 at SAR46 billion, which […] March 28, 2024
Employment Bahrain launches minimum wage fund to bolster youth Lawmakers in Bahrain are to spend over BD200 million ($500 million) to lift the minimum wage of the kingdom’s citizens. The government hopes it will encourage more youth into the working world and stimulate the country’s economy. The initiative, run by Bahrain’s Labour Fund, which is also known as Tamkeen, received unanimous approval from the […] March 28, 2024
Economy Egypt’s ambitious budget makes private sector a priority Egypt’s budget for the financial year 2024-25 includes ambitious targets of 4.2 percent growth, a 50 percent increase in private sector investment and a primary surplus of 3.5 percent. The budget was approved in a cabinet meeting on Wednesday and will be sent to the House of Representatives by the end of the month. It […] March 28, 2024
Economy Egypt to get second part of UAE $35bn deal in coming weeks Egypt will receive the second tranche of payments from the UAE in the coming weeks, Prime Minister Mustafa Madbouly has said. Cairo has received $10 billion as part of the $35 billion deal struck with the UAE sovereign fund ADQ and has converted $11 billion from deposits from the Gulf state at the central bank, […] March 28, 2024
Economy Saudi exports fall 10% on oil output cuts Saudi Arabia’s exports fell by more than 10 percent in January compared to the previous year due to a reduction in oil exports. The Saudi economy has taken a hit from Opec+ oil output cuts over the past year, although non-oil exports rose slightly by 0.8 percent. Riyadh promoted the cuts in an effort to […] March 27, 2024
Economy Qatar woos foreign talent with 5-year residency permit Qatar has launched a residency permit aimed at attracting talented individuals and entrepreneurs. The permit programme, which is expected to open in the next few months, offers five-year renewable residencies to people with expertise in specific fields including the arts and scientific research. Applicants must either have a job offer in Qatar or demonstrate financial […] March 27, 2024
