
Economic Outlook
Oman's civil aviation sector has been
boosted after the official opening of the
Transitional Air Traffic Control (ATC)
Centre at Muscat International Airport.
The Centre will help air traffic control
operators familiarize themselves with the
state of the art equipment recently
installed, and help in ensuring an easy
transition to the new ATC center. The
center is part of the expansion projects of
Muscat and Salalah airports. When the airport is opened in full by the end of
this year, the air traffic control will move to the new air traffic complex and
passenger terminal.
Qatar's prince has issued a law allowing foreign investors to own up to 49% of
listed Qatari companies, part of the reforms to expand the stock market and
develop the country's financial industry. The law also allows foreigners to own
more than 49 percent of a company in special cases if they obtain approval
from the Qatari cabinet. In another market-opening step, citizens of the sixnation Gulf Cooperation Council will be treated as Qatari citizens for the
purpose of owning companies listed on the Qatar Exchange.
UAE has become one of the top buyers of electronic hardware from India
according to latest figures released by Electronics and Computer Software
Export Promotion Council (ESC). Middle East continues to remain one of the
top destinations of exports from India with hardware alone constituting more
than 20 per cent of the overall exports and registering a growth of 6.6 per cent
during the past year. Electronics goods export to the Middle East during 2013-
14 increased from $1.63 billion in 2012-13 to $1.73 billion during 2013-14.
President Abdel Fattah Al-Sisi announced a new Suez Canal project to dig a
72-kilometre canal alongside the original plus few supplementary tunnels, to be
implemented over a year at a cost of over 8 BN USD. This is the first phase of
the project which is expected to witness a comprehensive integrated
development for the area around Suez Canal converting it into a global
industrial and logistical hub. Al-Sisi called on the army’s engineering corps,
who will directly supervise the project, to conclude the project in one year
instead of the previously scheduled 3–year timeline. Al-Sisi attributed the
shortened time period to the “the deteriorating security” which could threaten
the project.
Qatar's inflation rose to 3.4% in May, with the pressures from rising rents (7%)
partly alleviated by soft global commodity prices. It’s also expected that
Qatar's inflation may hit 4% in 2015. On the other hand, strong public
investment spending is expected to give a push to Qatar's real GDP growth to
6.7% this year and 6.9% in 2015. Qatar's economy continued its strong growth
in the first quarter of 2014, expanding by 6.2% on a 12-month basis, up from
5.5% in Q4, 2013. The growth was driven exclusively by the non-hydrocarbon
sector, which is testament to the plans set out in the National Development
Strategy. Finance, construction, trade, restaurants, hotels and government
services each contributed between 0.9 - 2.3% points to GDP growth.
The Central Bank of Bahrain announced today that the Bahrain insurance
market posted an annual growth during 2013, with gross
premiums/contributions increasing by around 8% over 2012 to register BD
258.41 million in 2013. A significant part of this increase attributed to a surge
in Motor insurance, which has increased from BD 61.99 million in 2012 to BD
68.05 million in 2013, showing an increase of around 10%. Medical insurance
has also increased from 37.17 MM BD in 2012 to 40.83 MM BD in 2013,
showing an increase of around 10% and representing almost 16% of the total
premiums/ contributions written in the insurance market in 2013.
The Egyptian government has distributed 2.5 million smartcards in order to be
used in accessing petroleum products, and about 11,000 smartcard machines
have been placed at gas stations in order for customers to use their cards to
access fuel at the subsidized price. According to the government, the main
objective of the application of this electronic system is to tighten control of the
transfer, handling and distribution of petroleum products to eliminate
smuggling and ensure that subsidized fuel is distributed to those who deserve
it.