The Middle East

The banking sector in Kuwait maintained solid fundamentals in the face of a number of difficulties in 2012, including continued regional unrest, a volatile euro and global economic uncertainty. In line with the conservative approach the sector has followed for years, many banks continued to practice prudent lending policies and to transfer funds to provisions. In light of recent solid growth, however, some in the sector are looking for a shift away from conservative policies to those that could spur lending and accelerate growth.

Plans to introduce compulsory health insurance in Ras Al Khaimah (RAK) are expected to usher in a wave of new private sector investment, a response to a forecast rise in demand for specialised services. To do so, the emirate is also stepping up efforts to attract and retain trained staff in an increasingly competitive market.

The Kingdom is moving toward finalising plans to refurbish its only oil refinery, part of a wider programme that will see the Gulf’s first oil producer increase its focus on value-added downstream activities, rather than depending on its ever-decreasing reserves for revenue.

Railway developments are moving forward in Abu Dhabi, with the first phase of an expansive national project expected to be completed this year. A national network will decrease the emirate’s dependence on increasingly busy highways, and could be a boon to GDP growth. However, delays in scheduled passenger services will keep commuters on the highways for the next several years.

Efforts to open up new avenues for investment in family owned firms in Oman are gathering momentum as the authorities step up a bid to steer more local firms towards listing on the sultanate’s stock exchange.

Vast stretches of desert once tracked by camel trains will soon be spanned by one of the world’s most modern and sophisticated transport systems, with Saudi Arabia now developing a countrywide rail network that underpins the government’s programme to diversify the economy.