Economy

UAE may become first Gulf member to impose VAT

The Dubai Customs Department expected the UAE to become the first GCC member-state to enforce a value-added tax, but refrained to set a date for imposing the new duty.

Officials at Dubai Customs said it was up to the federal government to make the final decision on whether or not and when to impose the VAT, amid widespread speculation that the tax could go effective as early as the first quarter of 2009.

Official calls for Gulf Council membership for Yemen

Asked about Yemen's joining the GCC, Asiri says: "In fact, there are many voices which see that the time has come for Yemen to join the GCC. Regrettably, the issue was made restricted to the political decision makers only. Meanwhile, the political decision makers - as you know-have their own interests; they also have their local, regional, and international problems. Thus, we -as intellectuals, researchers, or media men - have to have a voice in the interest of the nation and in support of Yemen's joining the GCC."

BNP Paribas: Gulf Arabs likely to dump peg after next US election

Asia and the Middle East regions were described as “the brightest spots in the global economy during the next few months” by BNP Paribas. A bank study highlights that ballooning oil revenues are fuelling growth in the cited regions.

“The epicenter of economy potency has in effect shifted from West to East,” added the study. Combined projects financing value in the Middle East will climb to US$73 billion during this year, BNP Paribas sources said. Having said this, soaring inflation levels will also be problematic for the Middle East over the coming months, forecasts the study. Tackling the dollar peg, BNP Paribas said GCC member-states were likely to drop their currency pegs to the sliding dollar following the forthcoming US presidential elections in order to lower their cost of imports.

Egyptian-Gulf coalition plans US$16bn regional investments

An investment alliance comprised of Arabian Gulf and Egyptian partners has begun a regional tour scouring for business opportunities amid robust growth in direct investments and private equity funds.

Coalition sources unveiled embracing negotiations to implement two projects to deliver natural gas supplies to households: one in Abu Dhabi and Qatar and another in Jordan and Syria, through the Arab Gas Pipeline, which joins Egypt alongside the two Gulf countries.

Arabs to establish union of free zones in region

Arab countries will establish an "Arab Union of Free Zones" in an effort to coordinate measures and legislation among free zones to attract more investment. The union, to be based in Amman, comprises Jordan, Syria, Sudan, Egypt, Oman, Bahrain, Libya, Iraq and the United Arab Emirates as well as the private free zones in Arab states.

NoozzVIEW; Middle East fights inflation

The Gulf Arab states have launched an unprecedented campaign of emergency measures to restrain the tide of inflation sweeping across the region, while in Egypt – the most populous Arab state – inflation hit a 19-year peak as escalating costs for food and fuel threatened to damage impressive growth and stir popular discontent.

Proposed Union for the Mediterranean faced with hurdles

With just under a month before its official launch during a summit in Paris, the proposed Union for the Mediterranean (UPM), which is very dear to French President Nicolas Sarkozy, continues to attract deep controversies and reservations from some key leaders and countries.

"The project is undermined by notably Libyan leader Muammar Gaddafi and the hesitations of countries such as Turkey. The fact that Algeria has not shown much enthusiasm for the project does not help matters either," a regional analyst was quoted as saying recently, adding that "proponents of the union had a lot of homework to do."

Top GCC bankers meet in Qatar to discuss proposed monetary union

The GCC governors of central banks convened their 46th meeting in Doha in early June, with financial and banking subjects figuring out on the agenda.

They mulled over a draft agreement on a proposed GCC monetary union, which involves regulative and institutional basics for setting up the union, preparations for issuing a uniform GCC currency as well as a draft statute for the monetary council.

Further delays could kill EU trade accord plan-GCC

Gulf Arab states might pull the plug on a long-planned free trade agreement with the European Union if the bloc does not meet an end of July deadline, the head of the Gulf Cooperation Council said.

The secretary general of the GCC -- a loose political and economic alliance of six Gulf Arab nations including top oil exporter Saudi Arabia -- also criticised EU plans to upgrade ties with Israel.

Trade between Egypt and US hit US$8bn

The United States is the largest foreign investor in Egypt, accounting for 36 percent of total investments inflows in the country, according to Magda Shahin of the American Chamber of Commerce in Cairo. Shahin pointed out that US investments in Egypt cover a range of industries, such as energy, information technology, computer systems, pharmaceuticals, services and communication.

NoozzVIEW; Oman hits new inflation record

Although Oman’s economy is distinct from those of its five fellow members of the GCC, in that its oil reserves are not particularly large—a mere drop compared with those of Saudi Arabia or Kuwait - and are likely to be depleted within the next two decades, it is still suffering from the same economic scourge sweeping through the whole region: inflation.

According to the latest figures, the inflation rate in April soared to a record 12.4% as escalating food prices and rents intensified price rises across the region.