The Middle East

Underpinned by rising tourist arrivals and heating demand in the local economy, Dubai’s retail sector appears set to enter a period of solid growth. A recent study conducted by market research company RNOCS said that a strong tourism sector, combined with rising consumer confidence and soaring domestic consumption, would fuel growth in the retail sector across the UAE, with Dubai having become the focus of retail construction developments in the country.

The Kingdom’s banks are moving toward the second half of 2011 in a strong position, but their ongoing conservative positions have triggered criticism. Saudi Arabia’s financial institutions are cashed up with healthy levels of liquidity, operating in a secure and growing economy, and have shown new earnings and investment potential. Despite this, there have been calls for the Kingdom’s lenders to be more active in advancing credit, after two years of building up reserves.

Jordan’s government has undergone major overhaul with almost one third of all cabinet ministers reshuffled by Prime Minister Marouf Bakhit. Nonetheless, this does not appear to flag any major shift in economic policy.

Fixed-line telephone services in Kuwait are currently owned by the state, however, this may be set to change, according to recent statements by government officials. At the same time, the establishment of an independent regulatory agency for the communications sector is being considered. Both of these changes would dramatically affect the country’s internet service providers (ISPs), which have recently been subject to criticism from local internet users for their decision to implement “fair access” policies.

After several years of substantial economic expansion, Qatar was recently named the wealthiest nation in the world in terms of GDP per capita. However, with many of the oil and gas related projects nearing fruition, focus is turning to manufacturing and other non-hydrocarbons businesses and the role they will play in the local economy.

The Omani government has opened its doors to Islamic banking, with Sultan Qaboos bin Said Al Said issuing a royal directive in early May allowing for the roll-out of sharia-compliant financial services and institutions.