The Middle East

The crisis in Syria is weighing heavily on the Jordanian economy. While the cost of supporting some 500,000 registered refugees is perhaps the most obvious challenge for a government with serious budget constraints, the impact of events across the border extends to multiple areas of the economy, from an increase in food prices to trade route disruptions.

With rising demand for residential units starting to match interest in commercial space, Kuwait’s real estate sector appears set to see greater activity in the second half of the year. However, high prices and a shortage of supply in some segments may put a dampener on sales growth.

While cement manufacturers in Oman are expanding operations to meet new domestic and international demand, they continue to face a challenging business environment due to intense foreign competition. However, the outlook for future growth remains positive as the government rolls out infrastructure projects as part of its current five-year economic development plan.

The weakening of the lira could herald further problems for the cooling Turkish economy, with growth forecasts being scaled back and an expanding trade deficit taxing government efforts to keep interest rates low and inflation under control.

Recent rate cuts and additional international funding should boost bank lending in Jordan, with micro, small and medium-sized enterprises (MSMEs) in line to benefit from the increased loan availability. However, lingering concerns over regional instability and rising debt levels could influence commercial lenders’ willingness to extend credit lines.

Plans to establish Dubai’s credentials as a centre for Islamic finance took a step forward in July with the opening of a new academic institution to train professionals for employment in the sector.