Economy Interest rates to surpass 5% but experts predict drop Interest rates will climb beyond 5 percent by the middle of 2023 before stabilising later in the year, according to senior UAE banking experts. Martin Tricaud, group head of investment banking at First Abu Dhabi Bank, warned there was no timeline to predict when rates would start to fall, but he remained confident that “the […] March 2, 2023
Economy UAE minister says economy grew 7.6% in 2022 The UAE’s GDP grew by 7.6 percent in 2022, economy minister Abdullah bin Touq Al Marri said on Thursday. Confirmation of the figures comes as the government is expected to issue its first 10-year dirham-denominated bond, part of plans to strengthen the local debt capital market. “The UAE last year tapped the dirham bond market […] March 2, 2023
Economy Fitch affirms Israel’s credit rating but cautious on judicial reforms Fitch Ratings on Wednesday affirmed Israel’s ‘A+’ sovereign credit rating with a “stable” outlook, citing strong government finances, but it said that a planned judicial overhaul plan could weaken the country’s credit profile. In maintaining Israel’s rating, Fitch said it “balances a diversified, resilient and high value-added economy and strong external finances against a high […] March 2, 2023
Economy GCC sticking with the dollar peg, but changes could be afoot Saudi Arabia and the UAE were joined by Iraq this week in exploring alternatives to the dollar for non-oil global trade. While industry experts believe the dollar peg will remain in the short term, they say a move to decouple from the US greenback could soon become a reality. The UAE has been working with […] March 1, 2023
Economy China’s factory activity expands with fastest growth in a decade China’s manufacturing activity expanded at the fastest pace in more than a decade in February, an official index showed on Wednesday, smashing expectations as production zoomed after the lifting of Covid-19 restrictions late last year. The manufacturing purchasing managers’ index (PMI) shot up to 52.6 from 50.1 in January, according to China’s National Bureau of […] March 1, 2023
Economy Turkey’s earthquakes revive concerns over industrial heartland Earthquakes in southeastern Turkey that destroyed cities and killed 44,000 people have prompted authorities to look again at how the quake-prone nation might cope with a similar tremor in Turkey’s densely populated, northwestern industrial heartland. Istanbul, Turkey’s biggest city with a population of 16 million and the country’s commercial engine, lies near fault lines that […] March 1, 2023
Economy World Bank says quakes caused $34.2bn damage in Turkey The two major earthquakes which hit Turkey on February 6 caused about $34.2 billion in direct physical damage, but total reconstruction and recovery costs facing the country could be twice as high, the World Bank said on Monday. The bank estimates that the earthquakes would also shave at least half a percentage point off Turkey’s […] February 28, 2023
Economy UAE-Saudi non-oil trade surges 70% to $37bn in last decade Non-oil trade between the UAE and Saudi Arabia reached AED 136.09 billion ($37.05 billion) in 2022, a year-on-year increase of 9 percent. The two Gulf neighbours have seen their trade relationship grow by 70 percent over the past 10 years to AED 975.5 billion, according to data from the Federal Centre for Competitiveness Statistics. Scott […] February 24, 2023
Economy Turkish central bank cut rates to cushion earthquake impact Turkey’s central bank cut its main interest rate to 8.5 percent from nine percent on Thursday, moving to cushion the economic impact of a devastating earthquake that killed more than 43,000 people in country’s south on February 6. The cut was expected following the disaster, though some economists had predicted a considerably bigger reduction. “It […] February 24, 2023
Economy Earthquake to keep Turkish inflation above 40% Turkey’s devastating earthquake will keep inflation above 40 percent in the run-up to elections scheduled for June and will necessitate an additional budget, a government official and four economists said. They predict that the February 6 earthquake, which killed more than 43,000 people in Turkey, will cost the economy more than $50 billion, in line […] February 24, 2023
Analysis Energy One year on, what the war in Ukraine means for the Middle East A year since Russia invaded Ukraine, the war’s impacts are reverberating across the Middle East and North Africa. While some Gulf oil producers have prospered during the conflict, it has heaped suffering on some of the most fragile and volatile economies in the region. “It has contributed to the difficulties in Egypt and the worsening […] February 24, 2023
Finance $5bn of trade on the table as Abu Dhabi and Israel grow ever closer A top level delegation of 10 Abu Dhabi entities has returned from Tel Aviv as experts predict bilateral trade between the UAE and Israel could reach $5 billion by 2025. Led by the Abu Dhabi Investment Office (Adio), the delegation included Abu Dhabi Global Market, Abu Dhabi Residents Office, Hub71, Abu Dhabi IPO Fund, Masdar […] February 23, 2023
Economy Turkey supports jobs and wages in earthquake-ravaged south Turkey has launched a temporary wage support scheme and banned layoffs in 10 cities to protect workers and businesses from the financial impact of the massive earthquake that hit the south of the country. A 7.8 magnitude earthquake on February 6 killed more than 47,000 people in Turkey and Syria, damaged or destroyed hundreds of […] February 23, 2023
Analysis Southeast Asian investors flocking to Gulf to deploy capital A growing number of businesses from the Association of Southeast Asian Nations (Asean) are investing and expected to set up operations in the GCC to capitalise on deepening trade links. Freddie Neve, senior Middle East associate at UK-based think tank Asia House, said that rapidly expanding ties between the Gulf and emerging economies in Asia […] February 22, 2023
UK and Qatar renew commitment to deepen collaboration The UK and Qatar governments have renewed their commitment to deepen collaboration with investments in key sectors including clean technologies, life sciences, biotech, agtech and electric vehicles. Sheikh Mohammed bin Abdulrahman Al-Thani,Qatar’s deputy prime minister and minister of foreign affairs, and James Cleverly, the UK’s foreign secretary, signed a memorandum of understanding on Tuesday to […] February 22, 2023
Economy G20 finance chiefs to discuss debt, crypto and inflation G20 finance ministers and central bank governors will discuss debt troubles in developing economies, cryptocurrencies and global inflationary pressures at a meeting later this week, Indian officials said on Tuesday. The February 22-25 meeting in the Nandi Hills summer retreat near Bengaluru is the first major event of India’s G20 presidency. The meeting straddles the […] February 22, 2023
Economy Bahrain’s preliminary estimates show deficit falls 85% in 2022 Bahrain’s preliminary financial estimates for 2022 showed the deficit decreased by 85 percent, the finance ministry said in a statement on Monday. Total oil revenues increased by 58 percent compared with budget estimates, according to the statement. The country’s total public revenues increased by 42 percent to 3.490 billion dinars ($9.26 billion) compared with budget […] February 21, 2023
Economy Saudi Crown Prince unveils strategy for Northern Borders Crown Prince Mohammed bin Salman has unveiled a plan to drive economic expansion in Saudi’s Northern Borders region. The strategic office for the Northern Borders, announced on Monday, aims to increase development across the region, which is an emerging metals and chemicals hub, and take advantage of its location next to Jordan and Iraq. The […] February 20, 2023
Economy Turkey’s exports to Middle East rose 16.1% in January 2023 Turkey’s exports to Middle East countries rose 16.1 percent year-on-year in January 2023 to reach $1.43 billion, according to Turkish Exporters Assembly data. Overall exports in January hit $19.38 billion, a 10.4 percent increase year-on-year, the Daily Sabah newspaper reported, citing the data. Turkey’s exports to the UAE reached $223.1 million, driven by the jewellery […] February 20, 2023
Economy US and UK financial entities join talks at new debt roundtable US-based investment firm BlackRock is joining a new sovereign debt roundtable set up to accelerate progress on stalled relief efforts for distressed countries, with Britain’s Standard Chartered also joining, according to sources. The Global Sovereign Debt Roundtable, chaired by the International Monetary Fund (IMF), the World Bank and India – this year’s leader of the […] February 19, 2023
Economy Israel economy forecast to slow sharply in 2023 amid rate hikes Israel’s economy grew 6.5 percent in 2022 – slower than 2021’s 8.6 percent expansion but still much stronger than most Western countries – the Central Bureau of Statistics said, citing solid growth in consumer spending, exports and investment. The full-year reading exceeded the 6.3 percent projected by the Bank of Israel and the finance ministry […] February 17, 2023
Economy Tunisia’s economy grows 2.4% amid continued financial concerns Tunisia’s economy grew 2.4 percent in 2022, according to its National Institute of Statistics, down from the 4.3 percent growth registered in 2021. Growth in the fourth quarter was 1.6 percent year-on-year. Manufacturing was up 6.6 percent on 2021 and services 2.6 percent, although the latter slowed in comparison to previous quarterly growth of 3, […] February 16, 2023
