The Middle East

Islamic financial products, first authorised by the Omani government in 2011, are set to take off later this year, with the banking, real estate and insurance sectors all expected to see benefits. However, competition is also forecast to increase as both sharia-compliant and conventional banks vie for customers.

The emirate’s banking sector is still working to shake off the lingering effects of the global financial crisis, with lenders having to make higher provisions for debts than some of their neighbours who were less encumbered when the global economy went into decline.

The early August approval of a $2bn loan by the IMF to Jordan has once again brought the Kingdom’s financial concerns into the spotlight. However, the IMF was quick to point out most of the problems the economy faces come from external factors, and in particular the country’s reliance on foreign sources of energy, which is why much of the IMF’s money will be used to support a number of energy projects well under way.

The Kingdom’s economy is making steady progress towards regaining lost momentum following the global financial crisis and civil unrest in 2011. However, the recovery will need to be managed carefully if past losses are to be fully recouped.

Ahead of a planned privatisation of the country’s stock exchange, Kuwait’s Capital Market Authority (CMA), has been stepping up efforts to ensure listed firms are fully in compliance with a tightened regulatory regime, while at the same time providing transparency and accountability.

In the wake of the global financial crisis, Dubai’s construction sector has been slow to recover, with a near freeze on new developments. However, there are signs that the industry is beginning to move forward again.