UAE businesses turn cautious over global economy concerns
UAE businesses adopted a more cautious stance in November as concerns over where the global economy might be headed in 2023 weighed on decision-making. New orders slowed down slightly, and this was reflected in the pace of new job creation within the UAE private sector, according to the latest PMI (Purchasing Managers Index) from S&P Global. It is a sign that the UAE economy’s post-pandemic business activity spike is stabilising. But businesses will have been cheered by their cost of operations remaining relatively stable from inflationary pressures.
Qatar executives optimistic about future growth
According to the latest findings published in EY’s Qatar Investment Outlook Pulse 2022, executives in Qatar remain bullish about future prospects for the country, with around 82 percent expecting the economic growth of the coming five years to meet or exceed forecasts. The report is based on extensive one-on-one discussions, from Q4 2021 to Q1 2022, with executive decision-makers across the largest businesses in Qatar. The country’s GDP is expected to rise to QAR764bn this year, significantly up compared to the QAR525.7bn reported in 2020, when the country was in the grip of the Covid-19 pandemic. Oil and gas and consumer services had the most positive sentiments, with respectively 64 percent and 4 percent of interviewees expecting the sectors to outgrow the general economy over the next five years.
Metaverse to contribute $7.6bn to Saudi economy by 2030
The potential contribution of the metaverse to Saudi Arabia’s economy could be around $7.6 billion annually by 2030, as the Kingdom steadily diversifies its economy in line with its goals outlined in Vision 2030, according to a new analysis. Released by Strategy& Middle East, a part of the PwC network, the report noted that besides the Kingdom, the 3D-rendered internet business in the UAE could contribute approximately $3.3 billion to its economy by the end of this decade. Moreover, the emerging technology’s contribution to Qatar and Kuwait is expected to hit around $1.6 billion and $1 billion, respectively, by 2030. “The potential contribution of the metaverse to Gulf Cooperation Council economies could be around $15 billion annually by 2030, of which $7.6 billion would be in Saudi Arabia and $3.3 billion in the UAE,” said Strategy& Middle East in its report. The metaverse could contribute $800 million to Kuwait’s economy, while Bahrain’s share will be around $400 billion.
UAE: inflation set to drop next year
Inflation in the UAE is one of the lowest in the world and it’s expected to drop further next year, said Abdulla bin Touq Al Marri, Minister of Economy. “We have seen the last six months of global turbulence. But it’s the UAE’s agility that puts it on the global map. Inflation in the first nine months was 5.5 percent, one of the lowest in the world. We are looking at inflation going down further next year,” Al Marri said at a press conference on Tuesday. He pointed out that the country imports quite a large chunk of goods from non-dollar-based regions which helps beat the inflation due to the strengthening of the dirham, which is pegged to the dollar. The International Monetary Fund (IMF) said in its 2022 Article IV Mission to UAE that the inflationary pressures are expected to moderate gradually.
‘Kuwait’s financial reserves huge’ – a1 stable
Moody’s said that the credit position of Kuwait and the rating of the government of Kuwait at A1 stable depends on the country’s exceptionally huge financial reserves and huge oil and gas reserves with low production costs and very high income levels, pointing out that these strengths are offset by Kuwait’s very high dependence on oil and exposure to the risks of shifting from long-term carbon and challenging political environment, which impede policy formation and the country’s ability to adapt to regional geopolitical shocks and tensions, reports Al-Qabas daily. In a recent report, it indicated that the stable outlook reflects balanced risks to the rating. Effective implementation of measures aimed at reducing the government’s dependence on oil revenues and diversifying the economy, which the agency does not currently take into account in its baseline assumptions for at least the next two years, may increase Kuwait’s credit flexibility to fluctuations in oil prices.
UAE, Ukraine to start talks
The United Arab Emirates and Ukraine on Monday announced their intention to start negotiations on a bilateral trade deal, expected to conclude by the middle of next year, the UAE economy ministry said. The UAE state has tried to remain neutral in the Russia-Ukraine war despite Western pressure on Gulf oil producers to help isolate Moscow, a fellow OPEC+ member. The UAE’s minister of state for foreign trade, Thani Al Zeyoudi, and Ukraine’s economy minister, Yulia Svyrydenko, signed a joint statement on negotiations towards a Comprehensive Economic Partnership Agreement (CEPA), the ministry said.
Why Iraq needs more attention in India’s West Asia policy calculus
As the crisis in Ukraine, a renewal of tensions between Moscow and Washington, and Europe’s internal fissures maintain a strong hold on global geopolitical discourse, events taking place in West Asia, as always, offer an interesting glimpse into a consistently evolving regional dynamic for India. As the global interest remains fixated on Europe, the recent suspension of talks between Saudi Arabia and Iran being hosted by Iraq in Baghdad is notable. The talks were critical for a variety of reasons, including those that were transnational in nature and not just about regional rivalries and flashpoints.
For a long time now, Iraq has been one of the top two suppliers of oil to India, along with Saudi Arabia.