The Middle East Economy

Narrowing the current account gap and correcting the underdevelopment of the Anatolian provinces are just two of the goals of the Turkish government’s latest investment incentive scheme, announced in early April. The plan, which specifically aims at replacing intermediate goods imports with locally manufactured products, has won accolades from the private sector and business organisations.

Saudi Arabia’s economy, already robust after posting growth of 6.8% last year, seems set for a period of sustained expansion, with state-backed investments and higher-than-projected hydrocarbons earnings contributing to the Kingdom’s strong performance.

Small and medium-sized enterprises (SMEs) in Oman are gaining increased support from public and private organisations alike, with a number of public officials having expressed enthusiasm for the further development of the sector.

Clocking the world’s highest growth rate in 2011, Qatar is maintaining expansion despite a difficult international economic climate clouded by the eurozone crisis and doubts over the sustainability of US debt. Indeed, the country saw GDP growth of 14% in inflation-adjusted terms last year, with energy exports its leading economic driver.

Increased foreign mergers and acquisitions (M&A) activity and regulatory changes that encourage consolidation are expected to dramatically alter the commercial playing field in Turkey over the next several years.

The Jordanian government is attempting a difficult balancing act, working to boost economic growth while imposing a series of austerity measures intended to curb public spending and debt levels. These measures may prove unpopular with many in the electorate but should serve to strengthen the economy in the longer term.