Economy Turkish central bank hikes inflation view to 60% Turkey’s central bank raised its annual inflation forecast to 60.4 percent for the year-end from 42.8 percent three months ago, continuing a trend of playing catch up with extreme price rises, according to a presentation by Governor Sahap Kavcioglu on Thursday. A Reuters poll showed economists expect inflation of 70 percent at the end of […] July 29, 2022
Analysis Economy Inflation raises old debate on currencies being pegged to dollar The Gulf’s currencies have been linked to the US dollar for decades: the Omani riyal since the 1970s, the Qatari riyal since mid-2001 and the Bahraini dinar and the UAE dirham officially since early 2002. The latter three have effectively been linked to the American greenback since the 1980s, as has the Saudi riyal. The […] July 28, 2022
Opinion Economy Currency will remain strong in the Gulf as rates continue to rise The Fed will continue to raise interest rates in a bid to reduce food and energy inflation July 28, 2022
Analysis Economy Gulf set for more belt tightening as interest rates keep rising The Gulf’s business owners and consumers are set for tougher times ahead as the region’s central banks followed the US Federal Reserve and increased interest rates on Wednesday. While experts predict that rate hikes are set to continue even further, many analysts believe that the combination of strong GDP growth and high oil prices will […] July 28, 2022
Analysis Economy GCC embraces public-private partnerships to drive projects Public-private partnerships will become more important across a wider range of sectors in the Gulf region as countries continue to diversify their economies, say experts. With the total value of planned and unawarded projects in the GCC countries expected to reach $2 trillion, governments are seeking more private sector support in infrastructure projects delivery. “Both […] July 28, 2022
Economy Egypt and IMF working out ‘remaining points’ on loan Egypt and the International Monetary Fund are discussing remaining points in negotiations over a new extended fund facility, finance minister Mohamed Maait told Al-Arabiya on Wednesday. Asked if there were differences between Egypt and the IMF, Maait said: “In talks with anyone you go from one point of view to another. The talks are ongoing, […] July 28, 2022
Economy Gulf central banks lift rates as Fed makes second 75-bps hike Most Gulf central banks lifted their main interest rates by three quarters of a percentage point on Wednesday, moving with the US Federal Reserve as their currencies are pegged to the dollar. The Central Bank of Kuwait, the only one of the six Gulf Cooperation Council (GCC) countries that ties its currency to a basket […] July 28, 2022
Analysis Economy Britain’s plunging pound rattles Middle Eastern investors As Britain battles multiple headwinds of an unstable parliament, spiking inflation and a weakened sterling, global investors have taken note. The pound fell to two-year lows against the dollar this month – trading below $1.19 at one point – and Middle Eastern investors are now looking to spread their UK risk, a senior executive at the […] July 27, 2022
Economy IMF cuts global growth forecast, warns of recession from inflation The International Monetary Fund have cut global growth forecasts again, warning that downside risks from high inflation and the Ukraine war were materializing and could push the world economy to the brink of recession if left unchecked. Global real GDP growth will slow to 3.2 percent in 2022 from a forecast of 3.6 percent issued […] July 27, 2022
Economy Egypt adds 1m more people to social support programme Egypt will add one million families to a social safety net programme that provides cash transfers, bringing the total number of beneficiaries to more than 20 million, the presidency said in a statement on Tuesday. The “Solidarity and Dignity” programme began in 2015 with World Bank funding. Payments to families start at 350 Egyptian pounds […] July 27, 2022
Economy Fears for Tunisian democracy as Saied holds referendum Tunisians began voting on Monday in a referendum on a new constitution that critics of President Kais Saied fear will dismantle the democracy that emerged from a 2011 revolution by handing him nearly total power. The vote is being held on the first anniversary of Saied’s ousting of an elected parliament, when he established emergency […] July 25, 2022
Economy FACTBOX: Signs of a Tunisian economy in trouble Public finances are under strain and prices are soaring in Tunisia, presenting big economic challenges to President Kais Saied as he plans to overhaul the political system in a constitutional referendum on Monday. Here are some of the troubles affecting the economy, which was hit particularly hard by the COVID-19 pandemic due to its reliance […] July 25, 2022
Economy Saudi crown prince to visit Greece to sign energy, telecoms deals Saudi Crown Prince Mohammed bin Salman will visit Greece on Tuesday, July 26 to meet Prime Minister Kyriakos Mitsotakis, the Greek foreign ministry has confirmed. The ministry said the pair were due to sign bilateral deals, without giving details. A Greek diplomatic source told Reuters the deals were in the fields of energy, military cooperation, […] July 25, 2022
Economy Dubai welcomes 45,000 new businesses in 2022 … so far Dubai has seen a 25 percent rise in the number of new company licences issued in the first six months of 2022, highlighting the impact of the government’s new business incentive initiatives. “As a corporate services provider, I have seen first-hand a significant rise in foreign direct investment into the UAE from several geographies directly […] July 22, 2022
Analysis Economy Mixed reception for UAE’s Golden Visa discount programme Some experts accuse initiative of being mere ‘window dressing,’ while others praise its ingenuity Dubai has bolstered its Golden Visa scheme with associated discounts to help attract high-level entrepreneurs, doctors, academics and creatives to its shores. The government announced this week that it would provide its Esaad privilege card – originally only for public sector employees […] July 21, 2022
Economy Britain launches free trade talks with Israel following Brexit Britain has launched free trade talks with Israel, aimed at boosting service and tech sector ties as it seeks new deals after leaving the European Union. The current trade deal between the two countries is based on an old EU deal that has no specific provisions on services, Britain said, adding that the trading relationship is currently worth $6 billion a year. “The UK and Israel are […] July 20, 2022
Opinion Economy British firms tread fine line against rising inflation in the UAE The ‘discount culture’ is making it harder for businesses to maintain quality in a crowded market July 20, 2022
Economy Turkish lira tumbles to weakest point since December 2021 The Turkish lira weakened to 17.579 against the dollar on Tuesday, as the strong US unit and concerns over high domestic inflation and low interest rates dragged the currency to its weakest level since a full-blown currency crisis in December. Since the historic crash last year, the central bank has used its foreign exchange reserves […] July 20, 2022
Economy Oman decrees locals to take over 200 professions from expats Oman’s Ministry of Labour (MoL) is to Omanise 207 professions. The decision regulates the practice of professions including administrative director, director of personnel affairs, director of public relations, security supervisor, general manager, deputy director, social service specialist, social welfare specialist, social psychology specialist, social worker, student activities specialist and flight operations inspector. The decision also […] July 19, 2022
Analysis Economy Sheikh Mohamed underlines ties with France on first foreign trip The Louvre Abu Dhabi is perhaps the most visible symbol of the flourishing relationship between the UAE and France. The museum on Saadiyat Island, which opened in 2017 under an agreement between the two governments, is said to be France’s largest cultural project abroad. Given this backdrop of cultural and commercial ties, France was a […] July 19, 2022
Opinion Biden Middle East Biden missed the chance to make food security his biggest draw The spectre of hunger stalks many Arab states as grain supplies run thin July 18, 2022
Economy Turkish unemployment falls to 10.9%, as factory output rises Turkey’s unemployment rate dropped 0.3 percentage points month-on-month to 10.9 percent in May, while a seasonally adjusted measure of labour underutilisation rose 0.8 points to 22.4 percent, data showed last week. The labour underutilisation measure was on a falling trend for much of last year after peaking at 29.6 percent in January 2021 under the […] July 18, 2022
