Retail

Oman: Retail resolute

Positive monetary news and the announcement of continued investment have come as a boost to Oman's retail sector. Figures released by the Central Bank of Oman in September demonstrate a fall in the rate of inflation from 2.88 per cent in June to 1.82 per cent in July. The latest figures are a major improvement from Oman's 2008 inflationary peak of 14 per cent, prompted by high oil prices and fiscal loosening at the US Federal Reserve (the Omani Rial has been pegged to the dollar since 1973, with only one adjustment to the exchange rate in 1986). The positive inflationary outlook was reflected in Oman's Consumer Price Index (CPI), with the CPI rising only one-tenth of a point to 128.8 for July. The Food, Beverage and Tobacco index, which accounts for 30.4 per cent of the weight of the CPI, in fact fell two-tenths of a point to 149.4, reflecting a more stable price outlook for the country's retail sector in particular. This continued improvement in Oman's inflationary outlook has coincided with a more general improvement in industrial, consumer and retail demand, with money supply also growing again as investors and consumers alike take renewed confidence from stabilized prices. (source: OBG)

Bahrain: Retail steady

Though activity in Bahrain's retail sector may have slowed due to the global financial crisis, the cash registers are still ringing as the economy seems set to avoid recession and post growth this year. The past decade has witnessed the face of the retail industry get a radical makeover, with the shift away from stand-alone stores, more traditional bazaars or small shopping centers to large-scale malls in urban areas. Thanks to a highly concentrated population, with more than 90 per cent of those living in Bahrain residing in the country's two main urban centers - Manama and Al Muharraq - retailers have been able to focus on their markets, rather than having to spread their operations across a wider area to obtain high footfall levels. (source: OBG)

Saudi health premiums rise by 40 per cent as H1N1 weighs down on insurers

Swine flu has taken its toll on the Saudi health insurance sector as premiums have shot up by an average 40 per cent. This is in addition to 3,500 cases of infection and 26 fatalities. Earlier, several insurance companies in the kingdom refused to cover expenses relating to swine flu on the pretext that insurance policies do not cover epidemics. However, the government directive to both government and private hospitals to provide treatment for swine flu patients forced them to change their stance. They also bowed to pressure from their respective international reinsurance companies to make an increase in the insurance premium in cases where they cover the expense of swine flu treatment.