The Middle East Economy

Strong fundamentals underpinned by the hydrocarbons industry and increasing private sector activity point to sustained expansion for Saudi Arabia in 2014, but the economy is showing signs of slowing as the impact of the government’s stimulus package tapers off.

Many of the concerns that had been weighing on Dubai’s economy in the aftermath of the 2008 global financial crisis look to have been laid to rest this past year, with the emirate consolidating its place as a regional centre for tourism, transport, trade and retail, while posting robust growth.

The past year was a good one for Abu Dhabi, both in terms of economic performance and its progress towards a more diversified economy – the principle goal of the Abu Dhabi Economic Vision 2030, formulated some five years ago.

Focus in 2013 remained on maintaining growth and the continuing process of further diversification of the economy – something Bahrain has a head-start on over many of its neighbours. However, ongoing security concerns have overshadowed performance in some sectors.

Strong relationships with allied nations and international financial institutions are paying handsome dividends for Jordan, with multiple entities extending considerable new funding in the form of aid, easy credit and/or investment.

The latest data show that Kuwait’s GDP growth in 2012 was driven by a rapid rise in the oil sector, although the non-oil economy showed improvement. An uptick in consumer sentiment is set to support continued expansion in 2013, but Standard & Poor’s (S&P) says that long-term growth may be hampered by the government’s inability to meet its investment goals.