Analysis Economy Nadhim Zahawi: the Iraqi tasked with rebuilding the UK economy New British chancellor of the exchequer Nadhim Zahawi says his rise from “an immigrant boy” to hold the job as steward of the country’s treasury showed what a great country Britain was. Zahawi was appointed chancellor late yesterday after a series of ministerial resignations in protest at Boris Johnson’s premiership, including that of former chancellor […] July 6, 2022
Analysis Economy UAE businesses keep squeeze on profits as inflation bites Businesses in the UAE’s non-oil sector continue to defy global trends by choosing to squeeze profits rather than hike prices, as energy costs climb at the fastest pace for 11 years, according to a new survey. However, industry sources have told AGBI that this situation is unlikely to be able to continue in the long-term […] July 6, 2022
Economy Egypt non-oil business drops to lowest level for two years Non-oil private sector activity in Egypt dropped in June to its lowest level in two years as inflation, a weaker currency and shortages of materials bit into demand, a survey showed on Wednesday. The S&P Global Egypt Purchasing Managers’ Index (PMI) weakened to 45.2 from May’s 47.0, well below the 50.0 threshold that separates growth […] July 6, 2022
Economy Saudi and UAE boost spending to shield poor from inflation Saudi Arabia and the UAE are boosting state spending on social welfare by billions of dollars as they seek to shield their citizens from rising living costs. The UAE is doubling the financial support it provides to low-income Emirati families to 28 billion dirhams ($7.6 billion) to help them with soaring inflation in the Gulf […] July 5, 2022
Economy Qatar’s economy grows 2.5% in first quarter Qatar’s economy grew 2.5 percent in the first quarter from a year earlier, although the growth fell slightly from the previous quarter, official estimates showed on Tuesday. Qatar’s real gross domestic product (GDP), which is adjusted for inflation, shrank 0.3 percent in the first quarter from the fourth quarter to 166.26 billion riyals ($45.68 billion), […] July 5, 2022
Economy UAE doubles support for low-income Emirati families The United Arab Emirates is doubling the financial support it provides for low-income Emirati families to 28 billion dirhams ($7.6 billion) to help them with soaring living costs in the Gulf state. The expanded budget allocation, reported by state news agency WAM on Monday, includes increasing existing benefits and establishing new ones targeted at mitigating […] July 5, 2022
Economy Saudi King allocates $5bn to tackle rising prices The Saudi king has ordered the allocation of 20 billion riyals ($5.33 billion) to tackle the effects of the rising global prices, state news agency SPA reported on Monday. Half of the allocated money will go to social insurance beneficiaries and the Citizen Account Program, it added. Saudi Arabia’s non-oil private sector expanded in June […] July 5, 2022
Economy UAE-Indonesia deal to add billions to bilateral trade Officials from Indonesia and the UAE have hailed the signing of a free trade agreement which is predicted to boost bilateral trade to more than $10 billion annually within five years. The Comprehensive Economic Partnership Agreement (CEPA), signed in Abu Dhabi on Friday, will eliminate or sharply reduce duties on 99 percent of goods traded […] July 4, 2022
Economy UAE reaches trade pact with Indonesia Indonesia and the UAE today signed a free trade agreement, strengthening economic ties between Southeast Asia’s largest economy and the Gulf state. The Comprehensive Economic Partnership Agreement, signed in Abu Dhabi, will eliminate or sharply reduce duties on most goods traded between the nations. The accord includes chapters on services, investments, intellectual property rights and […] July 1, 2022
Erdogan says Turkey to review minimum wage due to inflation President Tayyip Erdogan said he has asked the Labour Ministry to review the minimum wage in Turkey due to persistently high inflation, after hiking it by 50 percent at the end of last year. Speaking after a cabinet meeting, Erdogan said the ministry would finalise work on the issue this week and he would make […] June 28, 2022
Opinion Gulf currencies would prosper if decoupled from the US dollar Countries pegged to the dollar have to follow the Federal Reserve's lead on interest rates, even if it doesn't suit them. For the GCC, it might be time to break free June 27, 2022
Egypt says rising inflation will be ‘temporarily tolerated’ Egypt’s central bank kept its overnight interest rates unchanged on Thursday, saying that for the next six months it would tolerate elevated inflation, caused mainly by the Ukrainian conflict, as the economy grows more slowly than expected. The Central Bank of Egypt (CBE) held its lending rate steady at 12.25 percent and its deposit rate […] June 24, 2022
Analysis Aftershocks: Afghan economy crumbles as disaster strikes The Taliban spent two decades fighting and brokering with Western powers to secure their demands for US-backed troops to leave Afghanistan after the 2001 invasion. But after storming back to power with a rapid military campaign in August 2021, the Islamist group has turned to the same governments with an urgent appeal for aid after […] June 23, 2022
Analysis A UK recession may spook Arab investors – or present an opening The economic outlook for the UK has grown progressively bleaker over recent months. After contracting 0.1 percent in March, Britain’s economy shrank by a further 0.3 percent in April, marking the first back-to-back declines since the onset of the global pandemic in March 2020. Last week the pound plunged to its lowest level against the dollar […] June 23, 2022
Rising food prices sees UK inflation hit new 40-year high Soaring food prices pushed British consumer price inflation to a new 40-year high last month of 9.1 percent, the highest rate out of the Group of Seven countries and underlining the severity of the cost-of-living crunch. The reading, up from 9.0 percent in April, matched the consensus of a Reuters poll of economists. Historical records […] June 22, 2022
Egypt approves 2022-23 budget, expenditure to rise 15% Egypt’s parliament on Tuesday approved the state budget for the financial year that begins on July 1, with expenditure rising by 15 percent and the deficit by 14.5 percent. The budget reflects the government’s desire to continue Egypt’s development and improve the lives of its citizens despite recent economic shocks, Minister of Finance Mohamed al-Maait […] June 22, 2022
Global recession coming in 2023, says Qatari central bank chief Qatar central bank governor Sheikh Bandar bin Mohammed bin Saoud al-Thani warned on Tuesday the global economy may face stagflation this year and a recession by 2023. Speaking at the Qatar Economic Forum, he said continued supply side constraints could limit central banks’ potential for action. Finance minister Ali bin Ahmed al-Kuwari said Qatar may […] June 22, 2022
Analysis Middle East growth forecast brightens despite global gloom Growth forecasts for the Middle East have been revised upwards despite the darkening global landscape. Middle East GDP growth for 2022 is now projected at 5.2 percent, an increase of 1 percentage point on the forecast three months ago, according to the Economic Insight report for the Middle East, commissioned by the Institute of Chartered […] June 20, 2022
Morocco seeks Saudi support, as economic growth slows Morocco invited Saudi Arabia on Thursday to contribute to a fund to spur investments, seeking economic gains from its close political alliance with the Gulf monarchy. The Moroccan economy is expected to slow to 1.5 percent this year from 7.9 percent last year on the back of drought and imported inflationary pressures. The Moroccan economy […] June 17, 2022
Analysis Why the Gulf could swerve the dreaded global recession The UAE and wider Gulf markets will likely avert a recession, experts have said, despite fears of a global slump as the US Federal Reserve announced a 75 basis point hike to interest rates – its largest since 1994. In early trading, bourses in Dubai, Abu Dhabi and Qatar fell on Thursday after local central […] June 16, 2022
Opinion Rates rise has come too late to curb inflation Difficult times lie ahead for those already struggling with the cost of living June 16, 2022
Gulf raises rates as US hits highest level in nearly 30 years Most Gulf central banks followed the U.S. Federal Reserve on Wednesday, lifting their key interest rates by three-quarters of a percentage point, while Saudi Arabia made a smaller hike after the latest data showed inflation there slowing slightly. The US central bank projected a slowing economy and rising unemployment in the United States in the […] June 16, 2022
