Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

QNB: GCC states recorded 3.7% GDP growth in 2013  Join our daily free Newsletter

MENAFN - Arab News - 12/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) Greater integration into the global economy of the MENA ex-GCC region through increased trade openness and enhanced competitiveness could raise long-term regional growth prospects, according to QNB Group.



MENA growth is a tale of two regions, the MENA ex-GCC and the GCC acting as a locomotive of growth for other countries. High hydrocarbon production and prices have lifted export and fiscal revenue in the GCC, enabling these countries to press ahead with major infrastructure spending plans. The GCC leads the region in terms of integration into the global economy through trade openness and competitiveness. Nonetheless, structural reforms aimed at liberalizing trade and investment would most likely yield a growth dividend in the long-term across MENA, according to QNB Group.



QNB Group estimates that real GDP growth in the GCC was 3.7 percent in 2013, compared with 1.2 percent in the rest of MENA. This is relatively sluggish compared with potential and historical average MENA growth of around 5 percent or higher. A number of MENA countries outside the GCC are undergoing political transition, creating uncertainty that deters investment, weakens short-term growth and delays much-needed reforms. However, a gradually improving political outlook in some of these countries, combined with the potential upside from economic reform, leaves room for higher short- and long-term growth across the region.



Integration into the global economy can be measured by the degree of trade openness, defined as the ratio of the sum of exports and imports of goods and services over nominal GDP. According to this measure, there is a strong positive relationship between greater integration and higher growth over the long-term. GCC countries continue to be at the top of the MENA group, partly reflecting their large hydrocarbon export sectors. However, both the GCC and the rest of MENA still demonstrate room for improvement compare to global leaders in trade openness, such as Singapore. This suggests that greater trade openness has the potential to yield a significant long-term growth dividend for MENA and can be achied through policies to remove barriers to trade




Competitiveness is another key aspect of global integration. The 2013-14 Global Competitiveness Index by the World Economic Forum (WEF) shows the GCC countries in the top league, with the rest of the MENA region lagging behind. This mirrors the recent economic growth performance of the MENA region.



The WEF report identified areas for enhancing competitiveness in MENA: Institutional frameworks and labor markets in North Africa as well as infrastructure, innovation and competitiveness. Structural reforms aimed at improving these dimensions of competitiveness could, therefore, lead to higher sustainable growth. Greater efforts to attract investment into infrastructure, including the GCC countries, would likely yield high growth dividends in the entire region, according to QNB Group.



In the GCC, investment in major infrastructure programs will continue to drive trade openness through higher imports. Further structural reforms aimed at attracting foreign investment into infrastructure, education and innovation would yield long-term gains in enhancing both trade openness and competitiveness. The GCC is already investing heavily in these areas, but further liberalization and investment incentives could bring the region in line with cutting-edge global standards



In the short term, the GCC will continue to drive MENA growth, mainly through heavy spending on infrastructure. Over the next year spending on large-scale projects is expected to drive growth across the GCC. Project spending in 2014 is estimated to be 30 billion in Qatar and 25 billion in Kuwait. Meanwhile, Dubai's successful bid for the World Expo 2020 and a number of new real estate developments will boost project spending in the UAE. The Saudi government alone is spending over 50 billion on infrastructure projects through its budget, which excludes significant project spending by the private sector and state-owned companies. Growth in MENA, outside the GCC, will be dependent on overcoming political uncertainties, liberalizing trade and improving competitiveness, according to QNB Group

 


Arab News




  MENA News Headlines
 Feb 14 2016 - UAE- Khalifa International Award for Date Palm and Agricultural Innovation announces award proclamation dateEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 14th February 2016 (WAM) -- The General Secretariat of the Khalifa International Award for Date Palm and Agricultural Innovation announced today ...

 Feb 14 2016 - Ministers of the future government take the oath before the UAE Prime MinisterEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 14th February 2016 (WAM) -- With the approval of President His Highness Sheikh Khalifa bin Zayed Al Nahyan the Ministers of the 12th Cabinet of the ...

 Feb 14 2016 - Dubai Health Authority hospitals and specialty centres receive more than one million patients in 2015Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 14th February 2016 (WAM) -- The Dubai Health Authority DHA announced today that its hospitals and specialty centres received more than one million ...

 Feb 14 2016 - UAE- President Khalifa calls on new ministers to work diligently and faithfully towards promoting march of developmentEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 14th February 2016 (WAM) -- President His Highness Sheikh Khalifa bin Zayed Al Nahyan has called on the ministers of the 12th Cabinet of the UAE ...

 Feb 14 2016 - UAE- President names Tahnoun bin Zayed as National Security AdvisorEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 14th February 2016 (WAM) -- President His Highness Sheikh Khalifa bin Zayed Al Nahyan has issued a federal decree appointing H.H. Sheikh Tahnoun ...

 Feb 14 2016 - IHC hosts Humanitarian Project Management Course for emergencies in DubaiEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 14th February 2016 (WAM) -- The International Humanitarian City (IHC) has held a three-day Humanitarian Project Management Course for emergencies for ...

 Feb 14 2016 - Al-Shabaab claims responsibility for plane bombing in SomaliaSaudi Press Agency
(MENAFN - Saudi Press Agency) Al-Shabaab group has claimed responsibility for an explosion that ripped a hole in the side of a passenger plane in Somalia last week, killing only the bomber himself, ...

 Feb 14 2016 - Many juniors arrested in Bahrain for joining demonstrationsSaudi Press Agency
(MENAFN - Saudi Press Agency) Bahraini security forces have arrested a number of teenagers for taking part in chaos and subversion in some Bahraini villages.The Bahraini News Agency, which carried ...

 Feb 14 2016 - UAE- Huge volunteer turnout at 4th Waste Free Environment eventEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 14th February 2016 (WAM) -- An estimated 700 volunteers from 14 schools alongside community members came together for a day of educational activities ...

 Feb 14 2016 - UAE- Masdar Institute to feature research projects in food energy and waterEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 14th February 2016 (WAM) -- The Masdar Institute of Science and Technology an independent research-driven graduate-level university focused on ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help