A strong performance from traditional industries such as agriculture and increased spending in infrastructure and service sectors allowed Kenya to notch up solid growth in 2014, while a rebasing exercise in September has helped better capture the economy’s true size.
The banking sector performed strongly in 2014, led by Abu Dhabi’s raft of big-ticket projects, which have proved to be a key driver of growth for larger lenders. However, signs that the market is becoming increasingly crowded, particularly in the retail segment, are prompting several players to look beyond the UAE’s borders for new business.
Falling oil prices and increased instability in the north impacted Nigeria’s economic growth in 2014, though a rebasing of GDP means that whoever wins the forthcoming presidential elections in 2015 will take the helm of Africa’s largest economy.
With earnings from oil accounting for more than 80% of government income, the halving of prices since June has eroded state revenue and could impact the extensive capital works programme in 2015, despite a government pledge to hike this year’s spending by 4.5% from its earlier plans.
A string of major international trade agreements, due to be implemented in 2015, promise to strengthen and diversify Brunei Darussalam’s exports as it ramps up efforts to reduce its dependency on crude oil sales in the wake of plummeting prices.
Strong fundamentals and a diversified economy are keeping concerns at bay in Dubai, despite a potential cooling of investor sentiment across the region and weakening global conditions.
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