The Middle East

The Saudi Arabian retail sector is expected to continue to post solid returns, with strong prospects for expansion in the medium-to-longer term, although this year retailers will likely have to factor in the higher costs as they hire more local staff.

The roll-out of fourth-generation long-term evolution (4G LTE) networks across Kuwait is expected to offer a boost to the mobile market. While the average revenue per user (ARPU) remains among the highest in the region, it has nonetheless been falling in recent years.

Recent regulatory changes are giving an added boost to Abu Dhabi’s real estate market, which appears on track to a recovery. While there has been some speculation that the new rules could help fuel a property bubble, these concerns are likely unfounded given the recent pickup in the rate of handovers.

Stable growth in Oman during 2013 is expected to continue this year, supported by both an increase in oil production and the government’s fiscal policies, with the non-oil sector set to boost expansion.

Strong consumer spending helped ensure economic growth in Kuwait this past year, although a slowdown in the energy sector meant the rise in GDP was modest. The outlook for the oil industry in 2014 is unclear, but there is an expectation that private consumption and the rollout of government infrastructure projects have the capacity to boost growth in the coming year.

Additional restrictions on consumer lending and higher interest rates could mean a slowdown in growth for Turkey’s banks, although the sector should have the resilience to ride out any shockwaves.