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
Analysis Economy UK targets Gulf for growth post-Brexit and Covid Rocked by the double whammy of Brexit and the global pandemic, UK businesses have endured a tumultuous two years. As European trade battles sharp retrenchment – UK-EU exports dropped by 12 percent last year, a loss of £20 billion – British companies are pursuing new growth avenues and the Gulf is proving to be a […] June 16, 2022
Manufacturing China’s factories perk up, amid signs of economic recovery China’s economy showed signs of recovery in May after slumping in the prior month as industrial production rose unexpectedly, but consumption was still weak and underlined the challenge for policymakers amid the persistent drag from strict COVID curbs. The data, however, provides a path to revitalise growth in the world’s second-biggest economy after businesses and […] June 15, 2022
UAE government offers spending boost to budget The UAE’s federal government aims to increase spending by AED1.23 billion ($334.9 million) in the 2022 budget, the Federal National Council said on Twitter today. The UAE estimates revenues will be AED374.98 million higher. The increased spending will come from the federal government’s general reserves, the council added. The UAE in October approved a 2022 […] June 14, 2022
Markets India rupee at record low, bonds rise to three-year high India’s rupee hit a record low in opening trade on Monday while bond yields spiked to their highest levels in more than three years as a sharper jump in US inflation raised concern over the Federal Reserve resorting to steeper rate increases. Soaring food and energy prices drove the largest year-on-year gain in US consumer […] June 13, 2022
UAE splashes out more foreign investment than it receives The UAE ranked first in the Gulf for foreign direct investment (FDI) inflows in 2021, but the amount the emirates invested overseas overtook this figure during the same period. The rising oil price is likely to see this trend continue, experts said. The newly released United Nations Conference on Trade and Development’s (UNCTAD) World Investment […] June 13, 2022
Turkey unveils latest salvo against soaring inflation Turkey’s government launched a series of steps meant to harness its banks and bond markets to cool soaring inflation and stabilise a sliding currency, doubling down on President Tayyip Erdogan’s aversion to raising interest rates. While the Treasury said fighting inflation remained its “top priority”, some analysts said the measures – announced late Thursday and […] June 10, 2022
Israeli PM visits UAE, as countries eye $5bn in trade Israeli Prime Minister Naftali Bennett visited the United Arab Emirates (UAE) on Thursday, where he met President His Highness Sheikh Mohamed bin Zayed Al Nahyan at Al Shati Palace. Bennett said he looked forward to working jointly with the UAE to expand cooperation between the two countries, and the peoples of the region, UAE state […] June 10, 2022
Egyptian currency touches five-year low Egypt’s currency weakened to 18.71 to the U.S. dollar on Wednesday, a five-year low, before strengthening again, Refinitiv Data showed. The pound was bid at 18.71 to the dollar, its weakest since Feb. 2, 2017, when it weakened to as low as 18.78 pounds. Egypt has been suffering from a shortage of foreign currency since […] June 9, 2022
