Economy Turkey offers ‘a warehouse and bridge’ for metals trade to Russia Western sanctions have given the Turkish metals sector a chance to serve as “warehouse and bridge”, the head of an industry group said, citing increased interest from Russian companies and also from European Union (EU) companies seeking to sell to Russia via Turkey. The West, including Britain and European Union countries, have imposed sanctions on […] August 9, 2022
Economy UAE’s operating surplus doubles thanks to oil price surge The United Arab Emirates government’s net operating surplus more than doubled in the first quarter to 36.4 billion dirhams ($9.9 billion) as surging oil prices boosted public revenue, finance ministry data showed on Monday. High oil prices and increased production have been a boon for the UAE’s economy this year, along with a continued recovery […] August 8, 2022
Economy Oman budget swings into surplus on oil price rise Oman’s budget recorded a surplus of 357 million rials ($929.7 million) by the end of the first quarter, boosted by a more than 70 percent rise in oil revenue as output and prices surged, finance ministry data showed. That compared with a deficit of 751 million rials in the same period a year earlier, the […] August 8, 2022
Economy Turkey’s June current account deficit set for $3.4bn, says poll Turkey’s current account is expected to record a deficit of $3.4 billion in June and end the year with a deficit of more than $40 billion, a Reuters poll showed on Friday, as soaring energy prices widen the shortfall. The trade deficit, a major component of the current account balance, soared 184.5 percent in June […] August 6, 2022
Economy Exporters cut year-end targets in blow to government plans Turkish exporters are revising down year-end targets in a move that could derail the government’s economic plans as new orders drop amid signs of a global slowdown and inflationary pressure. Turkey’s exports rose by 19 percent year-on-year in the first seven months of 2022 to $144.4 billion, but deteriorating global conditions, exacerbated by the war […] August 5, 2022
Economy Saudi Arabia posts almost $21bn Q2 surplus on high oil prices Saudi Arabia has registered a budget surplus of nearly SAR78 billion ($21 billion) in the second quarter of 2022, the finance ministry said on Thursday, an almost 50 percent rise from a year earlier, bolstered by high oil prices. Revenue in the second quarter reached SAR370.37 billion and expenditure was SAR292.46 billion, the ministry said. […] August 5, 2022
Economy UAE and Saudi ‘bright spots’ in challenging global IPO market The UAE and Saudi Arabia bucked the global downturn in initial public offering (IPO) activity in the first half of 2022. According to the EY MENA IPO Eye report, both countries – and the wider MENA region – remain a “bright spot in a challenging market”. It witnessed a 500 percent year-on-year increase in the […] August 4, 2022
Economy Turkey’s inflation surges to 70%, putting Erdogan in bind Turkey’s annual inflation jumped to a two-decade high of 69.97 percent in April, according to data on Thursday, fuelled by the Russia-Ukraine conflict and rising energy and commodity prices after last year’s lira crash. The surge in prices has badly strained households just over a year before presidential and parliamentary elections that could bring the […] August 4, 2022
Economy Egyptian non-oil sector continues contraction at slower pace Egypt’s non-oil private sector activity shrank again in July, but at a slower pace than June’s two-year low, as demand remains weakened by inflation and shortages continue to put pressure on supply, a survey showed on Wednesday. The S&P Global Egypt Purchasing Managers’ Index (PMI) strengthened slightly to 46.4 from June’s 45.2, remaining below the […] August 3, 2022
Economy Kuwait dissolves parliament, delays budget approval Kuwait formally dissolved parliament in a decree issued on Tuesday, state news agency KUNA said, as the Gulf Arab state’s crown prince moved to resolve a standoff between the government and elected parliament that has hindered fiscal reform. Last month Crown Prince Sheikh Meshal al-Ahmad al-Sabah, who took over most of the ruling emir’s duties, […] August 3, 2022
Economy Saudi non-oil private sector growth slows in July Saudi Arabia’s non-oil private sector kept up a steady pace of growth in July, albeit slowing slightly from June, helped by increases in customer numbers, purchasing and output, a business survey showed on Wednesday. The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy fell to 56.3 in July […] August 3, 2022
Economy Turkish manufacturing activity contracts for fifth straight month The Turkish manufacturing sector contracted for a fifth consecutive month in July as weakening demand, market uncertainty and price pressures all played a role in moderating output, a business survey showed on Monday. Turkey’s Purchasing Managers’ Index (PMI) for manufacturing stood at 46.9 in July, down from 48.1 in June, according to the survey by […] August 2, 2022
Economy Saudi GDP surges 11.8%, its fastest quarterly rise since 2011 Saudi Arabia’s gross domestic product is growing at the fastest rate for more than a decade, rising 11.8 percent in the second quarter, according to a flash estimate from the kingdom’s General Authority for Statistics. GASTAT said the year-on-year increase – the most rapid acceleration since the third quarter of 2011 – was driven by […] August 1, 2022
Economy UAE to discuss first African bilateral trade deal with Kenya The United Arab Emirates has signed an agreement with Kenya to begin talks on a comprehensive economic partnership, the first of its kind between the emirates and an African country. Dr Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade, and Betty Maina, cabinet secretary, ministry of industrialisation, trade and enterprise development of […] July 29, 2022
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
