The Middle East

Higher-than-forecast oil revenues should allow Oman to sustain economic growth for the rest of the year, as well as put its budget into the black. There is, however, a serious caveat. A weakening of global markets and any delays to the state’s efforts to strengthen its economic base could negatively impact year-end figures.

As Turkey wraps up the 2012 Istanbul Shopping Fest, all eyes are on the country’s retail sector, which has earned the distinction of being the nation’s largest employer. While the festival was, at least in part, designed to draw in foreign visitors, the domestic market has seen plenty of growth as well, especially in rapidly developing segments like e-commerce.

The Abu Dhabi Executive Council recently approved the building of a 10th independent water and power project (IWPP). The increased capacity this new facility will bring is expected to help the emirate meet its rising demand for utilities.

Boosting growth in the tourism sector is high on the government’s agenda for 2012, and country officials are working to display the country’s myriad entertainment offerings in a variety of high-profile events even amidst ongoing regional instability.

Prices in Dubai’s residential property segment have posted solid growth over the past few months, and other areas of the sector are also showing signs that recent declines are beginning to reverse. However, due to excess supply in many segments, it will be some time before demand catches up with new development.

The outlook for the retail sector is mixed, with a recently released study reporting that some of Bahrain’s shopping centres are facing difficulties, while other indicators suggest that consumer sentiment remains solid and spending could be set to rise.