Last year the region posted its highest growth performance in a decade. This year is likely to be even stronger, Standard Chartered's Middle East Quarterly says.
While Iraq and regional security concerns may dominate the international agenda, the report notes that the local focus is resolutely on the current economic boom.
"Although the region's political risks should not be downplayed, they need to be put in context. Last year, despite the war in Iraq, the GCC expanded by 6.8% and Iran by 7%. Amongst the non oil producers, even the Lebanese economy has enjoyed something of a renaissance." Gill James, Standard Chartered's Regional Head of Research explains within the report. "We expect the GCC and Iran to record growth in excess of 7% in 2004. While Jordan, for example, is likely to post growth of at least 6% this year, its best performance since 1995," James notes.
High oil prices underpin the boom. Supply concerns and strong global demand have pushed oil prices to twenty year highs. To match demand the Gulf is now close to producing oil at full capacity. Standard Chartered expects oil prices to remain high and volatile, with OPEC's benchmark oil price forecast to average USD 35 in 2004.
"Record oil prices are leading to record government revenues" writes Daniel Hanna, Standard Chartered's Middle East economist, "The combined net oil exports of the Gulf Co-operation Council (GCC) are on course to exceed USD 180bn in 2004, a jump of USD 35bn from 2003."
The report concludes that the region still faces long term challenges, in particular in terms of job creation and economic diversification. But the current boom and windfall oil revenues offer an opportunity to reform from a position of strength. "Embracing further reform will be key for making current growth levels sustainable" Hanna said.
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Economic boom gives Mid East opportunity to reform from position of strength says bank
- United Arab Emirates: Thursday, August 05 - 2004 at 10:06
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The immediate outlook for Middle East economies is upbeat, according to the latest economic report from Standard Chartered.
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Posted by Christine H. Andersen, Assistant News EditorThursday, August 05 - 2004 at 10:06 UAE local time (GMT+4)
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About Standard Chartered
Standard Chartered employs 30,000 people in over 500 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. It is one of the world's most international banks, with a management team comprising 70 nationalities.
Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalisation.
It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, security services, foreign exchange, debt capital markets and corporate finance.
Standard Chartered is well established in growth markets and aims to be the right partner for its customers. The Bank combines deep local knowledge with global capability.
The Bank is trusted across its network for its standard of governance and its commitment to making a difference in the communities in which it operates.
About Standard Chartered in the Middle East and South Asia
One of the leading international banks in the region, Standard Chartered has a branch network of 76 branches in 12 countries.
The UAE is the Bank's fourth largest market globally, and Standard Chartered has a commanding share in its chosen market segments. In the UAE, Standard Chartered has a network comprising eight branches and 22 automated teller machines (ATMs). A leader in investment services, credit cards, and personal loans, Standard Chartered is also the leading provider of cash management trade finance, and treasury products and services in the UAE.
Overall, the Middle East and South Asia region contributed over 11% of the Group's revenues in 2003, clearly demonstrating the Bank's strong network and expertise in the region.
For further information, contact:
Niall McLoughlin
Head of Corporate Affairs, Standard Chartered Bank
Tel: +971 (0) 4 5070467
Fax: +971 (0) 4 3594174
Mobile: +971 (0) 50 6251329
Or
Garry Nickson, MCS/Action, PO Box 20970, Dubai t: +971 4 3902960 f: +971 4 3908161
Standard Chartered employs 30,000 people in over 500 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. It is one of the world's most international banks, with a management team comprising 70 nationalities.
Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalisation.
It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, security services, foreign exchange, debt capital markets and corporate finance.
Standard Chartered is well established in growth markets and aims to be the right partner for its customers. The Bank combines deep local knowledge with global capability.
The Bank is trusted across its network for its standard of governance and its commitment to making a difference in the communities in which it operates.
About Standard Chartered in the Middle East and South Asia
One of the leading international banks in the region, Standard Chartered has a branch network of 76 branches in 12 countries.
The UAE is the Bank's fourth largest market globally, and Standard Chartered has a commanding share in its chosen market segments. In the UAE, Standard Chartered has a network comprising eight branches and 22 automated teller machines (ATMs). A leader in investment services, credit cards, and personal loans, Standard Chartered is also the leading provider of cash management trade finance, and treasury products and services in the UAE.
Overall, the Middle East and South Asia region contributed over 11% of the Group's revenues in 2003, clearly demonstrating the Bank's strong network and expertise in the region.
For further information, contact:
Niall McLoughlin
Head of Corporate Affairs, Standard Chartered Bank
Tel: +971 (0) 4 5070467
Fax: +971 (0) 4 3594174
Mobile: +971 (0) 50 6251329
Or
Garry Nickson, MCS/Action, PO Box 20970, Dubai t: +971 4 3902960 f: +971 4 3908161
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