The Middle East Economy

Following GDP growth of 2.8% in 2012 according to IMF numbers, up slightly on 2011, Jordan is working to maintain similar expansion this year, despite a drop in foreign grants and a simultaneous rise in its energy bill.

A US offer to back Jordanian bond issues may help lower the Kingdom’s borrowing costs and boost confidence in the country’s securities, which has been dented by regional instability that has slowed economic growth.

A landmark flight from Baghdad that touched down in late February at Kuwait International Airport looks set to usher in a new era of stronger economic ties between the two Gulf neighbours. The resumption of direct air-travel between Iraq's capital and Kuwait, which is building on a steadily rising flow of traffic between the two countries, spells good news for business leaders.

A recent decision by a parliamentary committee is expected to clear the way for the privatisation of Kuwait’s national airline, which in turn could reinvigorate a long-stalled programme to open up ownership of other state enterprises – or at least parts of them – to the private sector.

The economy of Ras Al Khaimah (RAK) has continued to expand, and while final year-end 2012 figures for growth have yet to be released, officials say they are confident that the forecast 8% increase in GDP – the same rate as in 2011 – will be have been achieved in the emirate.

The year 2012 was one marked by ups and downs for Kuwait, with a record profit highlighting the country’s economic growth, but also exposing its perpetuating reliance on oil revenues. While the planning of new infrastructure projects and growth in the banking sector showed that the country is recovering well from the effects of the 2009 economic crisis, the political scene was dominated by tensions between the government and opposition, which left the parliament paralysed for most of the year.