The Middle East

These are exciting times for Turkish car manufacturers, who are riding a wave of growth thanks to a weak lira, increasing investment in research and development (R&D) and foreign firms’ boosting of local production. In a sign of the local industry’s growing maturity, one domestic investment firm is now the frontrunner in the takeover of an ailing European car manufacturer.

Development of the health care sector remains a priority for Kuwait, with the government recently signing two agreements with foreign educational institutions that aim to improve training for the country’s medical professionals. While the goal of this type of international collaboration is to enhance the skills of local physicians who work at state-run facilities, the government is also taking steps to create private investment opportunities in health care.

2012 began with a particularly hefty reckoning for Jordan when the government received the largest energy bill in the Kingdom’s history: JD2.75bn ($3.87bn). Jordan relies heavily on imports for its energy needs – some 98% – and in 2011, energy amounted to 26% of total Jordanian imports. Yet cooperation with other regional states may hold the answer to the Kingdom’s current energy supply challenge.

The focus of Dubai’s health care sector is set to undergo a major shift, with greater emphasis to be placed on prevention rather than treatment, a policy that aims both to better meet the changing needs of the community and also rein in an expanding health budget.

Speculation is mounting that Oman’s insurance sector will witness further mergers and acquisitions if margins remain tight in the coming year. While the introduction of sharia-compliant insurance is expected to drive expansion in the industry, questions remain about both the length of time it will take for insurers to develop new products and whether take up will meet expectations.

Driven in part by state spending on infrastructure, housing and social development projects, Saudi Arabia’s economy is set for a year of solid growth. Longer-term predictions, however, are factoring in the uncertain state of the global economy. According to a report issued in mid-January by Riyadh-based Jadwa Investments, Saudi Arabia’s GDP will rise in 2012, with growth forecast to be around 3%.