Home > Insights > In the second quarter of 2015, Saudi Arabia’s gross domestic product grew by 3.8% compared to the same period of last year.
Monday, 07 Sep 2015

In the second quarter of 2015, Saudi Arabia’s gross domestic product grew by 3.8% compared to the same period of last year.


Insights MENA

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Economic Outlook

Economic Outlook

    • In the second quarter of 2015, Saudi Arabia's gross domestic product grew by 3.8% compared to the same period of last year.
 
    • Qatar's ministry of labor and social affairs set a deadline (till the 3rd of November) for private companies to implement the new online wage system which aims to provide access to the government to monitor a company's number of workers, their salaries and whether they have been paid or not.
 
    • UAE's minister of economy revealed that the industrial sector investment will reach 127 BN AED this year. It is worth mentioning that the industrial sector is the second contributor to the UAE's economy with 6,000 industrial facilities and around 433,000 employees.
 
    • According to figures released by Foreign Direct Investment (FDI) markets, the cumulative value of Greenfield Lebanese FDI during the period between January 2003 to May 2015 totaled 7.2 BN USD.
 
    • Although Oman exports liquefied natural gas -under long-term contracts to Spain and several Asian countries-, it might start importing it to cover the surging domestic energy demand.
 
    • Saudi Arabia's ministry of labor plans to change the labor law to include more strict penalties for labor law violation that reach 10 K SAR. In addition to temporary or permanent closure of any company that fails to abide by the law.
 
    • In August, Egypt has experienced the fastest growth rate of business activity-excluding oil- since the beginning of 2015.
 
  • According to the Egyptian ambassador to Tunisia, Egypt and Tunisia are planning to increase trade exchange volume to 500 MM USD in the coming period in comparison to 137 MM USD in 2014, in the coming period.
Political Events

Political Events

  • The Egyptian election commission announced that the parliamentary election will take place on the 18 th and 19 th of October. It is worth mentioning that Egypt didn't have a parliament for the past 3 years.
  • White house officials announced that president Obama assures Saudi King Salman that the United States is committed to stand for any Iranian security threat.
  • About 30 trillion cubic feet of gas were discovered by the Italian energy company "Eni" in Zohr field in Egypt. However this will not undermine the private-sector negotiations about buying gas from Israel.
Stock Market

Stock Market

    • .TASI was ranked among the world's 20 worst performing markets by capitalization in August, as it lost 16.4% or 88.2 USD BN to 451.2 USD BN compared with to 539.5 USD BN in July.
 
    • Most of .QSI sectors declined except for the banking sector that was led by Qatar International Islamic Bank and Commercial Bank of Qatar. However, telecommunication sector decline was led by Ooredoo followed by real estate sector led by Ezdan Holding Group.
 
  • .DFMGI decline in investments and financial services was led by Dubai Investments and Dubai Financial Market, followed by banking sector led by Dubai Islamic Bank.
Index Watchlist
Weekly % Change
YTD% Change
Egypt
.EGX30
-6.8%
7.6%
Construction & Materials
3.7%
-10.1%
Telecommunication
1.0%
-47.5%
Banking
2.3%
50.7%
KSA
.TASI
-5.8%
-13.5%
Petrochemicals
-6.6%
-34.8%
Banks & Financial Services
-4.9%
-3.8%
Telecommunication & Information
-4.2%
-45.7%
Kuwait
.KWSE
-2.5%
-23.7%
Banking
-1.0%
-7.9%
Telecommunication
-5.4%
-37.5%
Financial Services
-3.9%
-24.5%
Real Estate
-2.6%
-16.6%
Industrials
-2.8%
-10.0%
Qatar
.QSI
0.1%
9.3%
Banking & Financial Services
0.1%
25.9%
Industrials
-2.5%
-1.3%
Real Estate
-0.8%
31.3%
Telecommunication
-1.6%
-35.1%
UAE, Abu Dhabi
.ADI
-1.7%
2.1%
Banking
-2.8%
5.6%
Telecommunication
-3.1%
19.5%
Real Estate
-3.3%
-23.9%
UAE, Dubai
.DFMGI
-3.2%
6.0%
Banking
-3.1%
28.2%
Real Estate & Construction
-3.2%
3.9%
Investments & Financial Services
-5.1%
-8.7%
Telecommunication
-2.1%
-23.7%
Companies Transactions

Companies Transactions

  • Saudi Telecom's Co. (STC) Chief Executive reported that the company expects to employ 1 BN USD in the second half of 2015 to enhance its networks in a trial to meet the increasing demand on its web-based services.
  • Atlas group founder announced his willingness to put up his prime asset Atlas hospital -that is running in Oman- for sale in order to repay part of the 550 MM AED debt to banks.  
  • As announced by its Chief Executive, Strata, the manufacturing unit of Abu Dhabi's state-owned Mubadala Aerospace- predicts a revenue growth of 15% this year and aims to breakeven in two years.
  • With the help of Chinese and Arab banks, SKAI holding raises 299.5 MM USD loan that will be used to finance a new resort development on the UAE's palm-shaped island and upgrade an existing hotel.
  • Unilever will launch a new 1 BN AED plant in Dubai industrial city .The plant's future production will cover broad spectrum of its personal care brands including shampoos, skin lotions and many more product lines. 

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