The Middle East

Extensive plans to shift the focus of Oman’s oil export capacity away from the crowded Gulf waterways are gathering pace, led by the establishment of the newly-formed Oman Tank Terminal Company which will build, own and operate a huge storage facility positioned along the Sultanate’s eastern coast.

Large-scale overseas investments, combined with increased state spending on infrastructure projects, has resulted in the Jordanian construction industry shifting its focus from the capital Amman, which had long been the centre of building activity, to the port city of Aqaba.

The Kingdom strengthened its role as a hub for trans-shipment services in the Northern Gulf markets last year, buoyed by Saudi Arabia’s growing market. However, while the expansion of these services spells good news, rising demand has also produced challenges.

The banking sector in Abu Dhabi showed consistent increases in liquidity and net profits throughout 2012, largely aided by net-interest earnings and bigger profits from Islamic finance. Fourth-quarter results and a strong performance by many banks’ shares – the strongest in five years – have led many analysts to conclude that the sector is firmly on the path to recovery.

The launch of 4G long-term evolution (LTE) services in Kuwait has sparked a wave of increased activity among mobile operators as they move to attract new business in what is already a fiercely competitive telecoms market.

The government in Oman is channelling extra funding into education as part of a broader bid to provide its younger generations with the skills and qualifications needed to work in the modern economy. However, although the additional resources are a welcome step toward tackling key issues, such as improving students’ English language skills, it will take time for the benefits to trickle down into the economy.