The Middle East

With mobile penetration already well above 100%, the increasing popularity of high-speed mobile and fixed broadband is proving to be the key to growth in the Omani telecoms sector. Increasing operating costs and declining text usage are cutting into profits, however.

The banking sector is still dealing with fallout from the 2009 economic crisis, but banks are slowly reducing their bad debt ratios thanks to new requirements set out by the central bank and due to come into effect next year.

The transport sector in Qatar has had mixed results so far this year, in part a reflection of its exposure to the global economy. However, the three leading transport firms listed on the bourse continued to post strong earnings leading into the last quarter of the year.

Egypt’s recent decision to halt gas supplies to Jordan and the kingdom’s subsequent decision to lift fuel subsidies has placed the country’s already difficult energy situation under an added level of stress. However, the decisions also highlight the need for Jordan to create its own alternative forms of energy import and production, a process that is already under way.

With greater emphasis being placed on quality rather than quantity, the real estate sector is witnessing increasing competition in the facilities management sphere, presenting opportunities to experienced companies looking to maintain both commercial and residential buildings.

The continued conservative approach of Kuwaiti banks, both Islamic and conventional, seems to be paying off, with a number of institutions posting strong returns for the third quarter and several banks reporting double-digit quarterly increases in net profits for the period.