The Middle East

Benefitting as it does from a respected regulatory environment and rising demand, Bahrain’s insurance industry already performs well among its peers. An increase in infrastructure spending, however, and a renewed government focus on the sector stand to boost its growth even further.

Hopes are rising that January’s elections will end a period of economic uncertainty and allow the newly elected government to focus on increasing levels of foreign direct investment (FDI). Concern was mounting that Kuwait risked falling behind its regional rivals in attracting investment and diversifying its economy, despite surging oil revenues and solid growth last year.

With a reduction in mobile tariffs forthcoming, Omani telecoms companies are looking for new ways to attract customers by offering more advanced services at lower rates. The Ministerial Committee of the GCC Council announced in early February that tariffs on calls made to GCC countries while roaming in the region would be reduced.

Home to the region’s second-largest airline and with a new airport due to open shortly, Qatar is setting its sights on becoming an international leader in air transport. Qatar Airways now serves more than 100 destinations worldwide and is becoming a key player in linking the Middle East to Europe, Africa, Asia and beyond.

Recent strong performance of the retail sector looks to indicate that Dubai’s tourism sector could be entering a period of sustained growth, despite the regional impact of the Arab Spring. Traditionally, these two sectors have been closely linked, with millions of tourists coming to the emirate each year to experience what has become known as the “shopping capital of the Middle East”.

The financial sector in Ras Al Khaimah (RAK) performed well in 2011, with banking institutions weathering uncertain global economic conditions. Expected investments from the government and private sector, meanwhile, are set to keep capital flowing in and offer opportunities for further growth.