
Economic Outlook
Leaders of GCC countries will be discussing how to best meet this gap between
consumption and production at the upcoming Water world Middle East
Conference and Exhibition, to be held in Abu Dhabi from 12th to 14th October.
The total annual water consumption in the GCC is 26.5 billion cubic meters; yet
total water production is only 7.1 billion meters per annum. With groundwater
supplies almost exhausted in some countries, there is an urgent need for new
water supply projects to come online
to meet the 19.4 billion cubic meter
water deficit.
Qatar is the second most attractive
market in the world for investment in
infrastructure, according to EC
Harris. The country ranked second
globally and first regionally for its
strong business environment, healthy
pipeline of development work and
growing economy, making it an attractive country for investors including pension
funds and banks. The most dynamic infrastructure investment markets in the
Middle East are located in the Gulf with Qatar, the UAE and Saudi Arabia all
scoring in the top third of the index. These cash rich, economic powerhouses have
some of the highest investment profiles of anywhere in the globe with average
growth in construction services reaching double digits.
Oman's new long-term tourism strategy (2015-2045) is expected to be unveiled
around the end of the year. The new strategy, which is designed to add value to
the Sultanate's tourism industry, includes an action plan to achieve its goals. The
strategy, which will take at least three years for its complete implementation,
seeks to attract four million tourists annually by 2020. The next phase is data
analysis to find out the strengths of the country, which will take about three
months. One of the goals of the new strategy is to focus on increasing the
contribution of tourism industry to Oman's GDP, which was 6.6 per cent in 2012.
Dubai construction company Arabtec announced that it is close to completing the
planning and design stage of its 40 BN USD deal to build one million homes in
Egypt. Arabtec originally announced in March that it had agreed with the
Egyptian army to build the homes at 13 locations around the country on land
provided free by the armed forces. Construction was to start in the third quarter of
this year, with the first homes to be delivered in early 2017 and the whole project
to be completed before 2020. The project would not only mark a huge expansion
of Arabtec's business but also boost Egypt's struggling economy and help to
resolve a housing shortage that has become a major source of political discontent,
yet question marks and rumors still surround the project.
The UAE has been chosen to be the regional hub of pharmaceutical companies
that will positively impact supply, distribution, and pricing of drugs to make them
more favorable to patients. The Ministry of Health recently met about 100
directors of international drug companies, representatives of local factories and
authorized drug agents in the UAE to discuss international cooperation on
medicinal sales. The ministry has managed to achieve price cuts for 7,504
innovative and resembled drugs in four initiatives from 2011 until 2013. Price
reductions ranged from one to 60 per cent. This mutual cooperation has benefited
all patients, especially those suffering from chronic, viral and neurological and
cardiovascular diseases, and cancer.
Oman Air has embarked on a major journey with a detailed road map for
expansion. The company's key objectives are based on the principles of safety
and punctuality, being the airline of first choice, to make money and profits and
to cater for growth of the country. In the next 12 months, the airline will add 16
aircrafts to its fleet and aims to increase its fleet from the present 31 aircraft to 55
by 2017 along with new destinations under a ten-year plan. On fleet expansion,
Oman Air is negotiating with the vendors Airbus and Boeing over the choice of
aircraft. They will receive two Boeing 787-8 Dreamliner’s by the end of 2015.
A new visa policy in Bahrain that allows nationals from over 100 countries to
obtain a visa either online ahead of travel, or on arrival, will start to be
implemented from October 1st 2014. The new visa policy is an important
development that places Bahrain among the countries with the most flexible visa
policies in the region. The new policy will also be accompanied by improvements
to the individual screening process, ensuring faster and more effective processing
of applications. It will further enable expatriates who do business in Bahrain, to
easily travel in and out of the Kingdom, as well as boosting the tourism industry.
Under the new policy, visitors from 66 countries will be able to receive visas
upon arrival in Bahrain. These visitors will also be eligible to apply for their visas
electronically ahead of their arrival in the Kingdom, further easing their travel
experience.