The Middle East

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The utilities sector is turning to private and foreign investors to help spur the growth needed to meet local demand. The construction of 16 power and water projects worth $3.1bn are slated to increase water desalination capacity in the country, as well as improve wastewater treatment and conservation awareness.
Buoyed by positive growth in 2011, Abu Dhabi looks set to see a strong economic performance again this year. Though efforts to diversify the economy continue, high oil prices ensured that energy was the emirate’s strongest performer last year, even as non-oil sectors’ contribution to GDP increased.

Even though foreign direct investment (FDI) inflows are poised to rise sharply in the second half of 2012, the Jordanian government is treading cautiously against the background of a still fragile global economy and daily concerns over the level of regional instability on its own doorstep.

The creation of a new multi-billion-dollar industrial city in Bahrain could soon be given the green light as the government steps up its efforts to build on its manufacturing base.
While the overall direction of the real estate sector appears set for steady growth through the next 12 months, demand may be uneven across the various segments as the market moves towards striking a balance between supply and demand, particularly in office accommodation.
New corporate governance rules announced by the Central Bank of Kuwait (CBK) in June should continue to strengthen the banking sector and address issues that have been attributed to a weak corporate governance framework.

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