The Middle East Economy

Officials remain confident of solid economic growth this year, although there are concerns that domestic and regional unrest will leave the kingdom falling short of its objectives for 2012.

The government has announced plans to increase allocations to a key investment fund although there are still questions on how this move will affect state spending at home. The decision to strengthen the investment fund comes at a time when the government is also seeking to boost the domestic economy through its latest five-year National Development Plan (NDP).

The local economy appears set to sustain its recent upward momentum, as investor confidence returns and some core sectors rebound. However, there are still concerns that weak performance of key trading partners and tight liquidity could hold back expansion.

Stepping up efforts to attract foreign investment to its shores, Sharjah is reaching out to the global market to spur growth at home, though the emirate is facing stiff competition in an increasingly tight global market.

Whilst the economy is surging on the back of higher-than-forecast oil prices that are swelling the state coffers, concerns remain over the state’s long-term prospects.

Helping to lead the way in a number of burgeoning Iraqi industries, Turkish firms from the energy extraction, commerce and construction sectors are investing and expanding in Iraq. And though recent events have put a bit of strain on the relationship, Turkey remains the country’s largest trading partner, as demonstrated by Turkish exports nearly tripling since 2007.