Economy

NoozzVIEW; Qatar just keeps on growing

It is a measure of the dizzying state of the Gulf economy that a growth rate of 25.1 percent can be represented as a slow-down. Yet that is how Qatar’s latest estimate for 2007 is being described in the local press – because growth in 2006 hit an even more spellbinding 33.81 percent.

Growth in the current year is officially, and conservatively, expected to be around 20 percent. That forecast has rise by nearly five percent since March.

News Analysis: Saudi Arabia to stand tall in the GCC common market

This article focuses on the GCC common market inaugurated in January this year and is the first of a series by Daryl Champion on the themes of Gulf Cooperation Council economic and monetary union, currency, banking and finance.

Saudi Arabia, already regarded as the economic and political powerhouse of the Arabian Peninsula, stands to consolidate its position as the leading actor in the Gulf Cooperation Council (GCC) as the six-state bloc edges closer to full economic union with the inauguration of the GCC common market on 1 January this year. The GCC, founded in 1981 and comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE), has plotted a course of economic integration consisting of three principal stages: (1) a customs union, initiated in 2003; (2) the common market, initiated January 2008; and, (3) monetary union, originally scheduled for 2010, but currently facing long potential delays.

Japan to hold commercial forum in Iraqi Kurdistan

Deputy Prime Minister, Dr. Barham Salih, has discussed in Baghdad with Japan's ambassador for Iraq the feasibility of holding an economic forum for Japanese companies in the Kurdistan Province by the end of this year, calling upon these companies to participate in rebuilding Iraq.

A statement issued by the office of the Deputy Prime Minister has said that Salih discussed with Japan's ambassador Kataro Okawa the possibility of holding an economic forum for Japanese companies in Iraqi Kurdistan by the end of this year similar to the one recently held from 2 - 3 July in Amman, where the Iraqi delegation was headed by Vice President Tariq al-Hashimi.

News Analysis: Saudi Arabia committed to monetary union

This article focuses on Gulf Cooperation Council monetary union, originally scheduled for 2010 but now likely to be delayed by two to six years and is the second in a series by Daryl Champion on the themes of economic and monetary union, currency and inflation, and banking and finance.

Saudi Arabia is committed to Gulf Cooperation Council (GCC) monetary union despite projected delays of up to six years on the original 2010 deadline. A single Gulf currency is the third major phase in full GCC economic integration, with the bloc’s constituent countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) – plotting a bold course from the customs union of 2003 through to the common market inaugurated in January this year.

Sarkozy can ensure EU and GCC reach trade pact

Completion of the pending plan to sign a free trade agreement (FTA) between the European Union and Gulf Cooperation Council possibly requires the skills of French President Nicolas Sarkozy.

Last week, he brought together more than 40 leaders from the EU, North Africa and the Middle East for launching the 'Union for the Mediterranean'. Amongst others, the new union aims at improving energy supply, fighting pollution in the Mediterranean, setting up an exchange programme for students, and creating a scientific community between the EU and its southern neighbours.

S. Korea and six Gulf states seek to complete free trade deal

South Korea and six Gulf states agreed to reach a free trade deal by the end of next year after the two sides started their first round of free trade negotiations in Seoul earlier this month, a high-ranking official said.

""This week's meeting will be focused on laying the foundation for an early completion of the free trade talks,"" South Korean Deputy Trade Minister Lee Hye-min told reporters. ""Both sides agreed in principle to wrap up the negotiations by the end of next year. There are not many sensitive issues between the two sides, so negotiations will go smoothly"".

Investors flood new Iraq agency with project deals

Investors are flooding Iraq's new government investment agency with proposals worth tens of billions of dollars, as violence has dropped in recent months to a four-year low.

""If you come in the beginning, you're going to get cheap labour, support and many privileges, because we want investors. Later, the chances will be less,"" Ahmed Ridha said in an interview. Iraq requires huge investment to rebuild after decades of wars and sanctions. Foreign direct investment in Iraq in 2006 was a mere $272 million, according to United Nations statistics.

NoozzVIEW; Kuwait steps up prices war

Kuwait, the world’s seventh largest oil exporter and the one member of the six strong Gulf Cooperation Council to have severed the peg between its currency and the weakened US dollar, has turned to a new weapon in a bid to control inflation – now running at over 10 percent.

The decision to step in and ban the export of both live and slaughtered sheep and frozen chicken from August 1 has raised speculation that similar measures might be taken in other parts of the Gulf, as it had been assumed that the Kuwaitis’ currency move in May last year would have helped it in the inflation battle.

Dubai unveils US$100m Ethiopia plans

Dubai will invest about US$100 million in several Ethiopian economic sectors beginning in October, a visiting group of financiers said.

Sultan Ahmed Ben Sulayem, head of the Dubai World delegation, said the Dubai government firm would invest in mining, trade, agriculture, real estate and catering. ""A team of experts from Dubai is in the process of finalising agreements with the government,"" he told state-run Ethiopian television.

Labour Fund and Tender Board join forces

Bahrain's Tender Board has consistently been at the forefront of efforts to maintain transparency and good governance values in all aspects of tenders and purchases.

Now, in a special effort to involve the Kingdom's private sector in its ongoing e-tendering system, the Tender Board has joined hands with the Labour Fund (LF) to train owners and employees from the private sector on navigating the e-Tendering process. The two organisations signed a milestone Memorandum of Understanding (MoU) under which 300 companies will receive training on using the e-Tendering system to capture a bigger share of government contracts.

Bahrain: Branching out

The Bahraini economy is one of the most diversified in the whole Gulf region. Indeed, the kingdom began the process far earlier than many of its neighbours and is reaping the benefits. However, far from sitting pretty, the authorities continue to drive the development of new revenue streams and prepare for the post-oil future.

While this diversification programme has so far focused on heavy industry and the financial sector, there has recently been a shift back to oil, though with a new angle being taken.