Economy Emerging countries to suffer most if Fed rate hits 6% Emerging markets are facing their demons as traders mull whether US Federal Reserve interest rates will rise as high as 6 percent, a level that could kick weaker countries when they’re down, while diverging global growth paths and China’s reopening might cushion some of the blow for the bigger ones. Expectations for where the Fed’s […] March 10, 2023
Economy Egypt’s core inflation hits record high of 40.3% in February Egypt’s official annual headline inflation rate leapt in February to a higher-than-expected 31.9 percent, its highest in five and a half years, while core inflation skyrocketed to a record 40.26 percent, according to official data. The soaring inflation follows a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and […] March 10, 2023
Economy Saudi Arabia posts budget surplus of $27.68bn in 2022 Saudi Arabia recorded a budget surplus of SAR103.9 billion ($27.68 billion) in 2022, beating its own estimates, as higher oil prices boosted government revenues by 31 percent, according to finance ministry data. The world’s top oil exporter recorded real GDP growth of 8.7 percent in 2022 leading to the Gulf state’s first budget surplus in […] March 10, 2023
Economy Israeli fintech to wire $500m out of country over judicial overhaul Israeli financial technology firm Riskified is transferring $500 million out of the country, joining private sector opposition to the government’s planned overhaul of the judicial system. CEO Eido Gal shared the decision with employees in a letter and voiced concerns that the proposed changes to the court system, if ratified, could lead to a “prolonged […] March 9, 2023
Economy Turkey’s current account forecast to hit $43.5bn in 2023 Turkey is expected to record a current account deficit of $10 billion in January on the back of gold imports, a Reuters poll showed, while the deficit was seen at $43.5 billion in 2023. In a Reuters poll, the median estimate of 11 economists for the current account deficit in January was $10 billion, with […] March 9, 2023
Economy Fed’s Powell sets table for higher and possibly faster rate hikes It is likely the US Federal Reserve will need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation, Fed chair Jerome Powell told lawmakers. “The latest economic data have […] March 8, 2023
Economy Moody’s warns judicial reforms may impact Israel’s credit rating Moody’s Investor Service has warned that the Israeli government’s planned judicial reforms could weaken institutions and could negatively impact Israel’s sovereign credit profile. In its statement, Moody’s did not downgrade Israel’s A1 positive credit rating and did not walk back the positive outlook it assigned in April 2022 that was driven by solid government finances. […] March 8, 2023
Economy New Qatari PM takes helm as business activity bounces back Business activity in Qatar rebounded in February, recording its highest month-on-month growth since the country lifted its Covid lockdown. The Qatar Financial Centre purchasing managers’ index (PMI) – released one day before the cabinet reshuffle that elevated Sheikh Mohammed bin Abdulrahman Al Thani to prime minister – hit 51.9 in February, up 6.2 points from […] March 7, 2023
Economy UAE and Italy elevate trade status in bid to grow $7bn relationship The UAE and Italy have elevated relations to the level of a strategic partnership as the countries aim to build on growing trade figures seen last year. The announcement came after a meeting held on Saturday between President Sheikh Mohamed bin Zayed Al Nahyan and Italy’s Prime Minister Giorgia Meloni in Abu Dhabi during her […] March 7, 2023
Dubai firms head to Central Asia to build trade relationships A delegation of business leaders from Dubai will be heading to Central Asia next week to build on a non-oil trade relationship worth more than $2.4 billion. Dubai International Chamber said the first New Horizons trade mission – a new initiative to drive international expansion of its members to new markets – will focus on […] March 6, 2023
Economy Saudi Arabia to offer ‘tax relief’ to firms relocating regional HQs Saudi Arabia is likely to offer tax relief to multinationals that choose to relocate their regional headquarters to the kingdom in 2023, according to Minister of Investment Khalid Al-Falih. These companies are aiming to secure “lucrative” government contracts. “It is business as usual for them in Saudi Arabia and outside Saudi Arabia,” The Financial Times […] March 6, 2023
Economy Kuwait re-appoints Sheikh Ahmad Nawaf Al-Sabah as prime minister Kuwait’s crown prince re-appointed Sheikh Ahmad Nawaf Al-Sabah as prime minister and asked him to nominate a cabinet, state news agency Kuna reported, more than a month after the government resigned due to renewed friction with parliament. A long-running standoff between the government and the elected parliament has hampered efforts by the wealthy Gulf Arab […] March 6, 2023
Economy Europe to face high core inflation in near term, says Lagarde The European Central Bank (ECB) has already raised rates by three percentage points since July and essentially promised another half a percentage point increase on March 16, but investors have recently speculated on an even bigger move given poor inflation data. ECB president Christine Lagarde said the flagged increase is now “very very likely,” but […] March 6, 2023
Economy Saudi Arabia’s non-oil business activity hits eight-year high Saudi Arabia’s non-oil business sector activity soared to its highest level in eight years in February, based on a strong increase in demand and an optimistic economic outlook. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index jumped to 59.8 in February, from 58.2 the previous month, the fastest rate of increase since March […] March 6, 2023
Economy How deep are Egypt’s economic woes? Egypt’s economy has come under severe pressure over the past year, with the Egyptian pound tumbling, foreign currency drying up, and inflation soaring. Some of the causes date back decades, such as failed industrial development and export policies that created a persistent trade deficit. An over-valued currency, weak property rights and institutions, and an overbearing […] March 6, 2023
Economy Turkey working to renew UN-backed Black Sea grain deal Turkish foreign minister Mevlut Cavusoglu has said that Ankara is working hard to extend a UN-backed initiative that has enabled Ukraine to export grain from ports blockaded by Russia following its invasion. The Black Sea Grain Initiative brokered by the United Nations and Turkey last July allowed grain to be exported from three Ukrainian ports. […] March 6, 2023
Economy Ukrainian companies flock to Dubai as conflict rages on The number of Ukrainian businesses setting up in Dubai has risen by around 25 percent in the past year, as companies tap the Middle East to sustain growth while war continues at home. “For business owners setting up in Dubai, it is not about leaving Ukraine,” Olena Shyrokova, president of the Ukrainian Business Council (UBC) […] March 6, 2023
Economy UAE-Turkey Cepa deal to boost non-oil trade to $40bn The UAE and Turkey have signed a comprehensive economic partnership agreement that is expected to boost the value of non-oil bilateral trade between the two countries to $40 billion in the next five years. Signed by Turkey’s minister of trade Mehmet Muş and Abdulla bin Touq Al Marri, minister of economy of the UAE, the […] March 3, 2023
Analysis Economy Growing female workforce helps drive Saudi economy Saudi Arabia’s non-oil economy is forecast to grow by more than 5 percent this year, driven in part by an influx of women joining the country’s workforce. Expansion of the female labour force has been described as “one of the stand-out successes” of the kingdom’s Vision 2030 programme and shows no signs of slowing. The […] March 3, 2023
Economy Cash-strapped nations face IMF bailout delays as talks drag on Countries in debt distress such as Zambia and Sri Lanka turning to the International Monetary Fund (IMF) for financial help are facing unprecedented delays to secure bailouts as China and Western economies clash over how to provide debt relief. IMF funding is often the sole financial lifeline available to countries in a debt crunch, and […] March 3, 2023
Economy Egypt increases state pay and pension to ease economic burden Egyptian President Abdel Fattah Al-Sisi has announced a package of measures, including state wage and pension increases, aimed at easing economic pressures, hours after a hike in gasoline prices came into effect. The decisions include increasing civil servants’ monthly salaries starting from April by a minimum of 1,000 Egyptian pounds ($33), and raising the minimum […] March 3, 2023
Economy UAE minister predicts 2.8% GDP trade pact boost by 2030 The UAE’s first bilateral free trade agreements, signed in the past two years, will boost its GDP by 2.8 percent by the end of the decade, according to the country’s trade minister, Dr Thani Al Zeyoudi. The growth will result from access to new markets and populations in Indonesia, Israel and India, as the UAE […] March 2, 2023
