The Middle East

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Mixed signals are coming out of the Turkish retail sector, with sales volume making strong gains while at the same time consumer and business sentiment cooling. Incoming data point to growing pessimism over the economy. However it will be a while before the heat is taken out of the marketplace in the coming months.
With the government planning a series of big-ticket infrastructure investments and demand for private sector real estate developments heating up, Kuwait’s construction sector could be a strong performer over the next few years. However, concerns regarding project delays may have a dampener effect on investor interest.

Plans to build a new desalination plant on the Gulf of Aqaba are moving forward. While critics argue that the $1bn project, which aims to address a chronic water shortage and save the shrinking Dead Sea, is expensive and potentially damaging, advocates insist the need to proceed couldn’t be clearer.

An expected rise in consumer spending is set to benefit Oman’s retail sector throughout the last quarter of this year and into 2014, but the bulk of the benefits are likely to be felt in Muscat.
New insurance regulations in Saudi Arabia could offer advantages to larger, more well-established market participants, and encourage smaller providers to seek merger partners.
The banking regulator in Turkey has moved to stem a rising tide of consumer borrowing, announcing new limits on credit card debt and additional risk management requirements for lenders.

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