FIFA World Cup, rising fossil fuel exports to drive Qatar economy at 4.6pc in 2022
The much awaited 22nd FIFA men’s World Cup is taking place in Qatar from 20 November to 18 December 2022. The small and oil and natural gas-rich Arabian Gulf nation has reportedly spent $200 billion so far on infrastructure to accommodate over one million visitors during the month-long sports extravaganza. Against this backdrop, the Qatar economy is expected to grow at a faster pace of 4.6% in 2022 compared to 1.5% in 2021, forecasts GlobalData, a leading data and analytics company. GlobalData projects the number of international arrivals in the country to rise by 162% over last year to 2.2 million in 2022. With a surge in tourist inflows and an increase in tourism spending during the World Cup, the wholesale and retail sector are forecast to record a growth rate of 7.6%, whereas investments to upgrade road, railways, and airports are expected to boost the construction sector by 7.3% in 2022.
UAE unveils national plan to double GDP by 2031
The UAE has set out a plan to double its gross domestic product to 3 trillion dirhams ($820 billion) by 2031 through driving up the country’s non-oil exports and tourism sector. Unveiled by the county’s Vice President Sheikh Mohammed bin Rashid at the UAE Annual Government meetings held in Abu Dhabi, the ‘We The UAE 2031’ plan has a focus on social, economic, investment and development aspects. As part of the plan to raise GDP from its current level of 1.49 trillion dirhams, targets were set to increase the country’s non-oil exports to 800 billion dirhams. Foreign trade is also set to rise to 4 trillion dirhams, with the contribution of the tourism sector to GDP to grow to 450 billion dirhams. Sheikh Mohammed said that ‘We The UAE 2031’ will shape the progress of the country towards a more accomplished and developed future, in which all entities and institutions will cooperate within a unified ecosystem.
UAE market goes into overdrive
The UAE business fraternity puts the pedal to the metal this week with a slew of announcements reflecting its capital adequacy and financial stability in the public and private sectors. Dubai Islamic Bank, rated A3 by Moody’s and A by Fitch, on Wednesday priced its inaugural sustainable sukuk, a $750 million 5-year senior issue with a profit rate of 5.49 percent per annum, representing a spread of 155 basis points over five-year US Treasurys. According to a press note, it is the first-ever sustainable sukuk from a UAE financial institution and the largest from a bank based in the Gulf Cooperative Council region since February 2022. The sukuk, listed on Euronext Dublin and NASDAQ Dubai, was created to finance green and social initiatives and projects. “We are delighted to have issued our inaugural sustainable sukuk. This deal was very important for DIB given our strong commitment to Sustainable Finance and the UAE’s Net Zero agenda and the Dubai Clean Energy Strategy,” said Adnan Chilwan, group CEO of DIB, in a statement.
Saudi Arabia tells it is close to making $5 billion deposit with Turkey
Saudi Arabia and Turkey are discussing Riyadh placing a $5 billion deposit at Turkey’s central bank, a Saudi Ministry of Finance spokesperson said on Tuesday. “We are in final discussion to make a USD 5 billion deposit with the central bank of (Turkey),” the spokesperson said in an emailed response to a Reuters query. The Turkish central bank declined to comment on the issue. A Turkish official with the knowledge of the matter said discussions are at the final stage with Saudi Arabia over a swap or deposit agreement. Turkey’s economy has been badly strained by a slumping lira and soaring inflation of over 85 percent and a swap or deposit agreement could boost Turkey’s diminished foreign currency reserves.
Oman’s economic sectors are experiencing growth, improvement
H E Sultan bin Salim al Habsi, Minister of Finance, in a closed-door round of discussion on the draft version of State Budget 2023, said that some economic sectors are experiencing growth and improvement in fiscal indicators, mostly resulting from a rise in oil prices that peaked to record levels. “The amelioration is also due to financial and economic measures that reflected positively on prospective results of State Budget 2022, leading to a fiscal surplus that contributed to a decline in public debt,” H E Habsi said. H E Habsi was speaking in a meeting that was part of the second ordinary session of the Shura Council’s 4th annual convening during the 9th Term. He cautioned against the fact that enduring geopolitical fluctuations and changing global scenarios may impact the future of the state’s fiscal stability.
Oman launches fiscal stability programme
Oman has launched a three-year fiscal stability programme to add to the momentum of the sultanate’s economic recovery from the pandemic-driven slowdown and support the development of the country’s financial sector. Launched by Oman’s Sultan Haitham, the National Programme for Financial Sustainability and Development of the Financial Sector will begin from January 2023, according to a government statement carried by Oman News Agency. The programme will “make the financial sector a major enabler for the growth of investments and the economy, in a manner that guarantees the continuity of all development programmes”, the state news agency said. Sultan Haitham, who chaired a meeting of the Council of Ministers on Thursday, also reviewed the economic performance and progress made so far on projects under the country’s 10th five-year economic development plan. He directed state officials to “double efforts towards the achievement of best results in economic diversification [of] sectors, with the aim of motivating the economy on a greater scale”, the news agency said.