Analysis Economy Jordan GDP growth forecasts raised on domestic demand Real GDP growth forecasts for Jordan have been raised after sectors including manufacturing, finance, transport and retail performed stronger than expected in the first quarter of the year. Analysts at BMI (formerly Fitch) expect Jordan’s real GDP growth to hit 2.8 percent – up from a previous forecast of 2.6 percent. Growth stood at 2.5 […] July 25, 2023
Economy Turkey signs $50bn deals with UAE to revive economy The UAE and Turkey have signed deals estimated at $50.7 billion during a visit by President Tayyip Erdoğan to Abu Dhabi. Erdoğan and UAE President Mohamed Bin Zayed Al Nahyan attended the signing ceremony of the agreements, including an extradition accord, energy and natural resources development, space and defence cooperation, the UAE state-run Wam news […] July 20, 2023
Economy GCC economies to grow at much slower pace in 2023 The economies of five countries in the six-member GCC are forecast to grow even more weakly than expected three months earlier because of lower prices of oil, the region’s main export, according to a Reuters poll of economists. Brent crude, the global benchmark of oil price, has fallen from a near record-high of $139 a […] July 19, 2023
Economy Non-oil sector propels Q1 growth in Bahrain Bahrain’s economy expanded by 2 percent in the first quarter of 2023, driven by a 3.5 percent rise in real GDP for the non-oil sector, the finance ministry said in its quarterly economic report. The oil sector recorded a 5.9 percent drop in real GDP, as seasonal maintenance led to a downturn in production. Nominal […] July 18, 2023
Trade Saudi and Turkey strengthen energy and defence ties Saudi Arabia and Turkey have signed energy and defence agreements with plans to boost direct investments and build on bilateral trade worth over $6 billion last year. Turkey’s President Tayyip Erdoğan and Saudi Crown Prince Mohammed bin Salman were present as the agreements were signed, state-run Saudi Press Agency reported. The deals included two contracts […] July 18, 2023
Economy A new era of much slower growth dawns in China China is entering an era of much slower economic growth, raising a daunting prospect: it may never get rich. Whether the world’s second-largest economy chugs ahead at three to four percent annually or flirts, as some economists expect, with Japan-like “lost decades” of stagnation, it looks set to disappoint its leaders, its youth, and much […] July 18, 2023
Opinion Economy Insights into the UAE-India love-in The dirham-rupee link was the talk of Dubai even before Modi's visit July 17, 2023
Economy Turkey hikes fuel tax to balance budget spend Turkey raised tax on petrol on Sunday to help fund a 1.12 trillion lira ($42.2 billion) increase to its 2023 budget. February’s earthquakes and the May presidential election sent spending soaring. The additional fuel tax will help with a budget deficit that jumped to 263.6 billion lira in the first five months of the year, […] July 17, 2023
Real Estate Saudi’s new mortgage scheme to encourage homebuyers Saudi Arabia has launched a new mortgage guarantee services firm in an effort to increase home ownership among nationals. The Saudi Real Estate Development Fund (REDF) has launched Dhamanat, a wholly owned subsidiary, with SAR18 billion ($4.7 billion) in capital to provide insurance, alongside mortgages. Mortgage issuance fell by more than one third year-on-year in […] July 14, 2023
Economy India and GCC resume free trade deal talks India and the GCC have resumed talks to finalise a free trade agreement, a senior Indian government official has confirmed. Ausaf Sayeed, secretary at India’s external affairs ministry, told the sixth India-Arab Partnership Conference in New Delhi that the parties have exchanged preliminary documents and delegations have been meeting, ANI, an India-based news agency, reported. […] July 14, 2023
Analysis Trade Pakistan looks to UAE for trade deals, not loan debts The UAE confirmed late on Wednesday it has deposited $1 billion in Pakistan’s central bank, a day after Saudi Arabia also transferred $2 billion. In addition to direct funding, the Islamabad government is aiming to attract multi-billion dollar investments from the UAE and other Gulf countries to create millions of new jobs after struggling with […] July 13, 2023
Economy Egypt to sell stakes in 3 oil firms to ADQ for $800m Egypt has signed contracts with the private sector to sell state-owned entities worth $1.9 billion under its initial public offering (IPO) privatisation programme, said Prime Minister Mostafa Madbouly. The government has received $1.65 billion and the remaining $250 million will be received in the Egyptian pound, Ahram Online reported, citing Madbouly. The new contracts include […] July 12, 2023
Economy S&P Global sees positive signs in Nigeria and Kenya Nigeria and Kenya have both had positive economic policy developments in the last couple of months, one of S&P Global’s top sovereign rating analysts said, adding that South Africa was a slow-moving story of steadily rising debt to GDP. Nigeria is a country that S&P is now “watching closely”, Frank Gill, one of the ratings […] July 12, 2023
Economy Egypt’s inflation rises to all-time high of 35.7% in June Egypt’s annual urban consumer price inflation in June rose to a record 35.7 percent year-on-year from 32.7 percent in May, data from the country’s statistics agency Capmas showed. Analysts had expected the country’s headline inflation rate to jump to an all-time high, a Reuters poll showed on Thursday, as an unfavourable base effect and increased […] July 10, 2023
Economy Countries repatriating gold as Russian sanctions bite An increasing number of countries are repatriating gold reserves as protection against the sort of sanctions imposed by the West on Russia, according to an Invesco survey of central bank and sovereign wealth funds published on Monday. The financial market rout last year caused widespread losses for sovereign money managers who are “fundamentally” rethinking their […] July 10, 2023
Economy Foreign investment in UAE surges to record $23bn The UAE attracted 60 percent of the total $37 billion of foreign direct investment into the GCC in 2022, helped by inflows from Austria and South Korea in particular. According to the World Investment Report 2023 by the UN Conference on Trade and Development (Unctad), foreign direct investment (FDI) flows into the UAE jumped 10 […] July 6, 2023
Economy Turkish inflation jumps 3.9% in June on weaker currency Turkish monthly inflation jumped 3.92 percent in June, still less than expected, as it was stoked by a plunge in the lira currency after the re-election of President Tayyip Erdogan, official data showed on Wednesday. The median of estimate in a Reuters poll predicted inflation would climb 4.84 percent month-on-month. Annual inflation dipped a bit […] July 6, 2023
Exclusive Infrastructure UK must court Gulf investors despite Thames Water crisis The UK’s investment minister has said that the country must continue to incentivise foreign investment in its utilities sector, despite ongoing concerns that Thames Water, which is part owned by Abu Dhabi, could be on the verge of collapse. In an interview with AGBI this week, Lord Dominic Johnson, a minister of state in the […] July 6, 2023
Economy Surge in new orders prompts salary rises Companies across the Gulf’s biggest economies have enjoyed a surge in new orders both locally and from overseas, with some forced to raise salaries to meet demand. The Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) reported that new orders in the country rose at “accelerated, multi-year record rates”. Data showed that output in the […] July 5, 2023
Analysis Economy Oil cuts hurt Oman GDP, say experts Oman’s GDP growth is set to slow this year as oil production cuts act as a “significant drag” on economic activity. Growth is forecast to slow from 4.3 percent in 2022 to 1.8 percent this year, according to analysts at BMI, formerly Fitch Solutions. This is below the 10-year historical average of 3.1 percent before […] July 5, 2023
Economy Bahrain to invest $1.3bn into UK Bahrain’s private sector plans investment of more than £1 billion ($1.26 billion) into the UK, with the aim of driving greater cooperation in clean technology, business services and manufacturing. Investments will be through the kingdom’s sovereign wealth fund Mumtalakat, along with Investcorp, GFH Financial Group and Osool Asset Management. The Strategic Investment and Collaboration Partnership […] July 4, 2023
Analysis Oil & Gas Saudi GDP growth slows as oil activity to ‘go into reverse’ Slowing oil activity is hampering real GDP growth for Saudi Arabia, the world’s largest exporter of crude, official figures show. Real GDP grew by 3.8 percent year on year in the first quarter of 2023, according to Riyadh’s General Authority for Statistics. This is down from 5.5 percent in the previous quarter and 10 percent […] July 4, 2023
