
Economic Outlook
Incomes of wealthy Egyptians are going to
be subjected to a new 5% surtax, approved
by the Egyptian cabinet last week; the tax
will last for the coming three years. It will be
applied on those who earn more than 1 MM
EGP ($141,900) annually in 2014, 2015 and
2016. The first payment would be due in
January 2015. Moreover, Those subject to
the tax would be given the choice of whether their funds should go towards
public projects in education, health, agriculture, housing or infrastructure.
Real GDP growth in the GCC region is expected to hit 4.7% this year, As GCC
countries continue to be the main engine of economic growth in the MENA
region, with Qatar leading the way. Real GDP growth in the GCC recorded an
estimated 4.1% in 2013, with the highest growth rate in Qatar 6.5% compared
with 2.7% for the rest of the MENA region. The recovery in global energy
demand and large investment spending are expected to accelerate growth in the
GCC more, while the rest of MENA is likely to continue to track behind.
Kuwait is considering cutting subsidies on diesel, electricity and water in the
coming few months in order to economize and regulate the state's budget
spending. Another decision will be made to reduce the overseas medical
treatment allowance paid to each patient and two of his/her companions from 70
to 100 KD daily, as it was before 2013.
In UAE, Abu Dhabi Education Council (ADEC) has sent an official permission to
a total of 39 schools in the emirate of Abu Dhabi to increase their fees for the
2014-2015 academic year. The average increase at each of these institutions,
offering a variety of curricula such as Ministry of Education, British, American
and Asian, will be 6%, Twenty-three of these institutions are based in the capital,
and 16 are in Al Ain. At the same time, 43 applications for fee increase have also
been rejected.
Saudi Arabia has curbed its food imports by 11.7% in April to 1.06 MM tons
compared to 1.20 MM tons in the same period last year. On a quarterly basis,
imported food entering Saudi ports in Q1 of the current year has reached 3.33
MM tons compared to 3.09 MM tons in the same period last year with 8%
increase.