The Middle East Economy

Once again signalling the government’s intent to realign the local labour market, officials announced on February 8 that the Kuwaiti Manpower Restructuring Programme has targeted the placement of 20,000 citizens in private sector jobs over the next two years. The announcement comes at a time of growth, when the country and wider region are beginning to shrug off the effects of the global economic crisis.

With efforts to accelerate the pace of economic growth and boost domestic employment taking centre stage under the new government of Prime Minister Marouf Bakhit, a new law is under discussion that would focus state incentives more squarely on investments that add value, create jobs and make use of local resources.

While the Jordanian political landscape has been renewed, the new prime minister, Marouf Bakhit is expected to face a number of challenges confronted by his predecessor, Samir Rifai. Some argue he will have even less time to balance the necessity of reinvigorating the economy with the need to meet popular expectations.

Jordan’s economy has entered 2011 in strong shape, having posted solid growth over the past 12 months and looking to do even better in the coming year, though progress has been patchy in some areas and there are more than a few potential potholes further down the road.

This year Kuwait’s economy has stabilised, allowing the country to look forward to a period of renewed growth and dynamism. Following a 4.6% contraction in GDP in 2009, the picture for 2010 and beyond looks significantly brighter. In September the ratings agency Moody’s Investors Services predicted that the economy would grow by 2.1% and 4.5% in 2011. Much of this is attributable to a rebound in demand, and consequently prices, for oil.

Jordan’s Ministry of Planning and International Cooperation (MOP) has released its Executive Development Programme (EDP) for 2011-13, with JD6bn ($8.4bn) to be distributed among 24 different economic sectors.