News Analysis: Industrial sector weathers financial crisis

The Middle East's growing industrial base has so far proved to be surprisingly robust in the face of the financial crisis that is currently decimating the economies of Europe and the US. Despite falling oil prices and a general financial downturn globally, demand for industrial goods and services remains strong. Government and private sector investment in industry in the Gulf is set to remain high. Bolstered by record oil prices earlier this year, the region's economies are not being adversely affected by the recent drop in prices.

Iran allocates US$40m to Iraq's agriculture sector

The Iraqi Agriculture Minister said that Iran intends to give a US$1 billion loan to Iraq, US$40 million of which will be allocated to the agriculture sector. In a meeting with Iranian agricultural officials, Ali al-Bahadli said that his visit to Iran was aimed at signing agricultural MOUs and discussing Iranian agricultural specialties, especially in fighting pests and draughts and promoting innovative methods of irrigation. Referring to the deal signed between Iraq and the Iranian tractor manufacturing companies, he said that during each phase, some 200-500 tractors will be exported from Iran to Iraq. Iraq will facilitate Iranians interested in investing in the Iraqi agricultural industry.

Dubai Diamond Exchange opens new trading floor

The Dubai Multi Commodities Centre (DMCC) announced the opening of its new premises and trading floor for the Dubai Diamond Exchange (DDE) in the Almas Tower in the Jumeirah Lakes Towers. DDE is now operational in its new facilities on the second floor of Almas Tower. This allows DDE to expand its benefits and services for its members. DDE will house a 1,500-square-metre trading floor comprising public trading facilities, private viewing rooms and sophisticated technical instruments to inspect diamonds, fully automated vaulting facilities and digital market information.

Gulf aluminium investments reach US$23bn

The aggregate investment volume in the aluminium industries sector in the Arabian Gulf currently stands at roughly US$23 billion, according to the chief executive of Dubai Aluminum (DUBAL). Primary industries account for US$15 billion of the above figure; the remaining US$8 billion comes from manufacturing industries, said Abdullah bin Kalban. As for the ramifications of the global financial crisis on the aluminium sector, Bin Kalban said the aluminium industry – similar to most economic sectors – relies on an interplay between market demand and supply. Consequently, the previous has taken its toll on US and Japanese carmakers, as car sales worldwide are rapidly dropping.

Qatar, UK to set up US$400m clean energy fund

Qatar and the UK are to set up a £250 million (US$403 million) fund, the Qatar-UK Clean Technology Investment Fund, to invest in renewable energy. The state-owned Qatar Investment Authority (QIA) will provide £150 million towards the fund, while UK government body the Carbon Trust will provide a further £10 million and has made a commitment to get the remaining £90 million from the private sector. The deal was announced during British Prime Minister Gordon Brown's stopover in Qatar as part of his four-day tour of the Gulf.