SCB Economic Update

Middle East Overview: standing up to challenges
Three issues have dominated the region over the last month: 1) the deteriorating geopolitical situation; 2) corporate profits in the GCC; and, 3) investment into the non-GCC countries.
Thursday, August 03 - 2006 at 10:52 |

Kuwait: Political, not economic, reform
1) The 'opposition' has increased its position in parliament. 2) The new parliament will push for electoral and democratic reform. 3) The government will face increased difficulties in passing its economic reform agenda.
Tuesday, July 04 - 2006 at 17:43 |

UAE: Investments to drive growth and diversification
1) Growth will remain strong driven by diversification efforts. 2) The fall in the stock market will not lead to wider systemic risk. 3) Inflation is a key concern. (By Monica Malik)
Tuesday, July 04 - 2006 at 17:32 |

Morocco: A packed reform agenda
1) A strong cereal output and increased tourism receipts will result in a pickup in growth. 2) The resilience of the economy will be boosted by the economic reform program. 3) Currency reform is needed to make exports more competitive. (By Abah Ofon)
Tuesday, July 04 - 2006 at 17:24 |

Jordan: Increasing resilience
1) The economy has performed well despite growing external pressures. 2) Nevertheless, the current account and fiscal deficits will widen further in 2006. 3) Reducing unemployment will be critical going forward. (By Monica Malik)
Tuesday, July 04 - 2006 at 17:16

Middle East: Innocent as charged
Correcting global imbalances is clearly the number one economic challenge facing world leaders and the IMF's decision to set up a multilateral consultation process to discuss the best way forward is a positive step. Oil producing nations have come under increasing scrutiny as current account and fiscal surpluses soar in the backdrop of record oil prices. In this backdrop, western leaders have been keen to point out the need for oil producers to do their bit in helping to address global imbalances including 1) increaseing domestic spending to boost import demand and 2) greater currency flexibility. We believe both requests are misplaced, at least from a Middle East perspective.
Tuesday, July 04 - 2006 at 17:01 |

Libya: Gradual reforms to continue
1) Economic reform in Libya is forecast to continue, albeit at a slow pace and slightly diluted. 2) Implementation will suffer from erratic decision making. 3) However, reform of the hydrocarbon sector will be fast tracked. (By Monica Malik)
Tuesday, July 04 - 2006 at 16:21 |

Kuwait: Missed opportunities
1) Kuwait's economy will continue to benefit from the high oil price. 2) However, little progress expected on the economic reform front. 3) There needs to be an improvement in the relationship between the government and parliament for this to happen. (By Monica Malik)
Tuesday, July 04 - 2006 at 16:08