The Middle East Economy

Stable growth in Oman during 2013 is expected to continue this year, supported by both an increase in oil production and the government’s fiscal policies, with the non-oil sector set to boost expansion.

Strong consumer spending helped ensure economic growth in Kuwait this past year, although a slowdown in the energy sector meant the rise in GDP was modest. The outlook for the oil industry in 2014 is unclear, but there is an expectation that private consumption and the rollout of government infrastructure projects have the capacity to boost growth in the coming year.

Business leaders in Jordan are stepping up their calls for government policymakers to consult more closely with them in formulating and implementing economic reforms, stressing the possibility of negative consequences for the private sector.

Growth outpaced expectations in Qatar this past year, while 2014 is widely expected to see an uptick in economic activity, as the non-energy sector further expands on the back of high levels of infrastructure spending and consumer demand.

While growth in Jordan picked up pace in 2013, the external environment continues to weigh on the economy and could slow recovery in 2014.

The government in Oman has been urged to cast its taxation net wider to fund the state’s economic and social welfare programmes, with the need for additional revenue flows likely to become more pressing if global oil prices ease further as some analysts have predicted.