Finance Dubai’s economy expands to hit $30bn in first quarter Dubai’s real GDP rose 2.8 percent year on year in the first quarter of 2023, to reach AED111.3 billion ($30.3 billion), while inflationary pressures and costs eased for Dubai’s non-oil business sector in July. The latest purchasing managers’ index (PMI) data from S&P Global revealed another strong month of growth for the non-energy private sector, […] August 9, 2023
Finance Turkey introduces 20% extra tariff on gold imports Turkey has introduced a 20 percent additional charge for some gold imports. Gold imports originating from countries without a free trade agreement and that are not in the European Union (EU) will be charged an additional fee on top of the existing import and other duties, Reuters reported. Gold imports such as jewellery products and […] August 8, 2023
Economy Qatar’s non-oil sector up but real estate slows Business conditions for Qatar’s non-oil private sector continued to improve in July. However there was a lack of demand for real estate following previous growth in construction that was linked to the Fifa World Cup. Output, new orders, employment and purchasing all expanded, with Qatar’s latest Purchasing Managers’ Index (PMI) reaching 54.0 in July, up […] August 7, 2023
Finance EBRD extends $109m loan for Turkey’s quake-hit region The European Bank for Reconstruction and Development (EBRD) will provide $109 million to Turkey’s largest private bank to lend to businesses and individuals affected by earthquakes that devastated the country’s south-eastern region in February. The loan is part of the bank’s Turkey disaster response framework, launched in the aftermath of the earthquakes, which caused over […] August 6, 2023
Economy Turkey pledges hiking rates at global investor meet Turkey’s new-look economic team met for the first time with dozens of international investors on Friday and pledged to continue hiking interest rates, even as economic growth slows, to head off rebounding inflation, two sources said. According to the sources and a draft programme, the eight-hour meeting in Istanbul included finance minister Mehmet Simsek and […] August 6, 2023
Banking and Finance Argentina agrees $775m loan with Qatar to repay IMF Argentina agreed a $775 million loan with Qatar on Friday, which will be used to make an immediate International Monetary Fund repayment. The country’s government is grappling with a severe economic crisis with sky-high inflation and falling central bank reserves while facing IMF repayments. Its economy minister Sergio Massa said on Monday Argentina would not […] August 4, 2023
Economy Turkey’s inflation rises to 48% after consumer prices jump Turkey’s annual inflation rate reached 47.83 percent in July, up from 38.2 percent in June, according to the Turkish Statistical Institute, as its economic woes continue to deepen. The rate of inflation has slowed after hitting a two-decade high of 85 percent in October 2022. Consumer prices jumped by 9.5 percent on a month-on-month basis, […] August 4, 2023
Energy Saudi oil cut extended as it posts budget deficit Saudi Arabia will extend a one million barrel per day voluntary crude oil output cut into September, as fears of a global economic slowdown continue to weigh on demand. The decision was made as the kingdom announced a budget deficit for the second quarter of the year. Negative GDP growth led to analysts declaring that […] August 4, 2023
Economy Egypt hikes interest rates by 1% to tackle rising inflation Egypt’s central bank increased overnight interest rates by 100 basis points, or one percent, as part of its move to control inflation. The overnight deposit and lending rates were raised to 19.25 percent and 20.25 percent respectively, the Central Bank of Egypt’s monetary policy committee (MPC) said in a statement. Additionally, the discount rate was […] August 4, 2023
Economy Drop in new orders slows non-oil business growth Non-oil business activity in the UAE and Saudi Arabia dropped in July as growth of new orders slowed. The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) for July hit 56.0, down from the high of 56.9 the previous month. Although it was well above the 50-point index mark, with anything below 50 indicating contraction, new […] August 3, 2023
Economy Israel warns high-interest rate may impact growth The Bank of Israel on Wednesday warned of risks to the stability of the banking system due to possible economic consequences from the government’s plan to overhaul the judiciary, as well as higher credit costs from a steep rise in interest rates. In its semi-annual report on financial stability, the central bank said that Israel’s […] August 3, 2023
Economy Turkey restricts use of credit cards for foreign travel Turkey’s banking watchdog has stopped allowing credit card payments by instalment for foreign travel, such as flights, travel agency fees and accommodation, in a step seen dealing a blow to foreign travel operators. The move hit airline shares and was seen as curbing foreign currency outflows. It was one of two measures announced by the […] August 2, 2023
Opinion Economy The GCC will need to make peace with inflation settling higher Gulf inflation will be more benign but looks set to persist into 2024 August 1, 2023
Economy Turkey’s trade deficit hits $61bn as exports drop Turkey’s foreign trade deficit increased by 18.7 percent to $61.2 billion in the first half of this year, with exports down by 1.9 percent compared with a 4.1 percent rise in imports. Exports from January through to June dropped to $123.3 billion, while imports climbed to $184.6 billion, according to the Turkish Statistical Institute. The […] August 1, 2023
Economy Asia’s factory activity shrinks as China’s economy weakens Asia’s factory activity shrank in July, private surveys showed on Tuesday, a sign slowing global growth and weakness in China’s economy were taking a toll on the region’s fragile recovery. The data underscores the challenge policymakers face in keeping inflation at bay with tight monetary policy, while forestalling headwinds from a potential recession in the […] August 1, 2023
Economy Egypt secures $616m loan to bolster banking reforms The Arab Monetary Fund (AMF) has extended a $615.8 million loan to Egypt to support the country’s reforms in the financial and banking sector. The program focuses on raising the efficiency of the payment systems infrastructure, improving financial inclusion and sustainability and strengthening supervisory and regulatory framework in the financial and banking sector. The AMF […] August 1, 2023
Analysis Economy Kuwait PM’s in-tray: public debt and budget reform Since Kuwait’s new government took office at the start of June, it has provided Kuwaitis – and many international investors – with much to consider. After just six weeks in office, Prime Minister Sheikh Ahmad Nawaf al-Ahmad al-Sabah’s administration announced a four-year programme featuring 107 major projects. These include completion of Kuwait’s stretch of the […] July 28, 2023
Economy Turkey’s central bank chief expects inflation to hit 58% Turkey’s new central bank chief pitched a comprehensive monetary policy in her first formal address to the media, while her acknowledgement of stark inflation pressures was welcomed by foreign investors. Laying out her philosophy in her debut news conference, Hafize Gaye Erkan pledged that her holistic approach would – in addition to interest rate hikes […] July 28, 2023
Economy Tax revenues fail to offset $4bn drop in UAE federal balance The UAE federal government’s balance sheet decreased by nearly $4 billion, or 38 percent, year on year in the first quarter of 2023, even though tax revenues rose 12 percent. Data from the UAE Government Finance Statistics Report for the first quarter of 2023, published on Tuesday by the UAE Ministry of Finance, found that […] July 26, 2023
Economy Saudi 2023 growth forecast cut to 1.9% by IMF The International Monetary Fund (IMF) has cut Saudi’s 2023 GDP forecast to 1.9 percent, as the kingdom’s oil production cuts weigh on its economic performance. Industry experts do not see this impacting the kingdom’s investment drive and the development of its massive slate of giga-projects. It may lead to further debt issuance to finance any […] July 26, 2023
Economy Israel’s judicial reforms to hit economy says Moody’s Moody’s Investors Service said on Tuesday that passage of a new law in Israel limiting some Supreme Court powers signalled that political tensions will continue and likely have negative consequences for Israel’s economy and security situation. “We believe the wide-ranging nature of the government’s proposals could materially weaken the judiciary’s independence and disrupt effective checks […] July 26, 2023
Economy Egypt’s current account deficit narrows to $5.3bn Egypt’s current account deficit narrowed to $5.3 billion in July-March of 2022/23 driven by an increase in the revenues of tourism and the Suez Canal, the central bank said on Tuesday. This compared to $13.6 billion in the same period a year earlier. Remittances from Egyptians working abroad have dropped by 26.1 percent for the […] July 26, 2023
