The Middle East Economy

A bid by Qatar’s government to consolidate several years of economic expansion, while channelling a budgetary surplus towards large-scale capital works projects, helped the country achieve its aim of more moderate growth for 2012.

The Saudi Arabian economy recorded another solid year of expansion in 2012, sustained by its energy sector and a steady rise in state spending. While growth may moderate in 2013, a number of sectors, including construction and banking, look set to continue expanding.

The emirate’s economy continued its recovery in 2012, with a number of key sectors posting high growth over the past 12 months. However, there are some concerns that the rebound could happen too quickly, resulting in further difficulties in the future.

The Omani economy saw another good year in 2012, with high levels of growth on the back of increased hydrocarbons production and solid results from the private sector. However, unemployment remains a concern for the authorities.

After watching growth top 8% in 2010 and 2011, Turkey is now seeing its economic expansion ease amid a slowdown in growth both globally and in the eurozone, the impact of civil war in Syria and the doubling of interest rates throughout 2012. Increased focus on domestic demand and exports could see growth rebound in 2013, however.

New developments in the logistics sector, alongside an increase in non-oil trade, are expected to keep Abu Dhabi’s economy on track for moderate expansion in the coming year, with plans for further diversification set to deliver increasingly balanced growth.