The Middle East

While Qatar's real estate and construction boom continues at breakneck pace, the perennial problem of shortages in building materials was given another airing this week, as building-sector leaders and the government tried to deal with a dwindling amount of cement, steel and gravel. At the same time though, analysts were generally unanimous in predicting a rosy future for real estate in the country, despite complaints from many residents over rocketing rents and prices.

Brussels has fixed a spotlight on Ankara this week, as the Turkish parliament looked to amend the country's 78-year-old penal code. Attention was drawn by a rancorous debate over a controversial government-sponsored amendment to the code which would have criminalised adultery. The debate provided opponents of Turkish European Union accession with further ammunition to question Turkey's Western and secular credentials and drew sharp criticism from EU officials. With the pressure on, the government backed down at the last minute, withdrawing the controversial amendment.

A new report released this week shows some healthy times ahead for Qatar's construction sector, which seems to have left far behind its former, darker days. The building boom looks set to continue after the Asian Games in 2006, with this Doha-based event already turning large parts of the country into a building site.

The release of data last week by the Union of Chambers and Commodity Exchanges (TOBB) concerning the size of Turkey's current account deficit produced widespread jitters in Turkey's financial community. With the figures showing year-end targets for the deficit already surpassed, the rosy picture of ever decreasing inflation and consistent growth presented by the government in recent months has begun to look a lot more questionable.

On the divided island of Cyprus, many Turkish Cypriots had been expecting that the end of August would see some major improvements in their lot, with trade and aid promising to kick-start economic growth in their internationally unrecognised state, the Turkish Republic of Northern Cyprus (TRNC). But the first trickle of commerce across the Green Line separating them from their Greek Cypriot neighbours was marred by mutual recriminations between the Greek and Turkish Cypriot authorities over terms and conditions.

The opening of the fifth International Fair for Textiles and Ready-Made Clothing in Ankara on August 19 confirmed Turkey's confidence in textiles as an engine for domestic economic growth. Though Turkish textile producers may be able to stand up to foreign competition at present, local enterprises need to remain nimble footed as pressure from the international marketplace heats up in the coming years.