Quotes: US 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 achieved 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
 Oct 23 2014 - Kuwait- Equates wins two regional sustainability awardsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Kuwait's EQUATE Petrochemical Company has won two regional sustainability awards in recognition for its social responsibility and national cadres' skills ...

 Oct 23 2014 - Moroccan horse showThe Peninsula
(MENAFN - The Peninsula) Moroccan horsemen perform during the 7th edition of the "Salon du Cheval" (horse show) in the port city of El Jadida. ...

 Oct 23 2014 - Kuwaiti Jazeera Airways net profit up 22.6 percent in Q3MENAFN
(MENAFN) Kuwait-based Al Jazeera Airways group announced it has registered USD28 million in net profit for the July-September period of this year, an increase by 22.6 percent compared to the same ...

 Oct 23 2014 - Qatar- Lekhwiya defeat Al Wakra, Wolves heldThe Peninsula
(MENAFN - The Peninsula) Lekhwiya defeated Al Wakra 2-0 at their home ground here yesterday while Al Sadd were held 1-1 by Al Sailiya.Vadimir Weiss scored in the 68th minute for Lekhwiya and Ahmed ...

 Oct 23 2014 - Ooredoo Kuwait net profit falls by almost half in Q3MENAFN
(MENAFN) Ooredoo Kuwait, the country's No.3 telecom operator by subscribers, announced that its net profit fell by nearly half during the July-September period, Gulf Business reported.The ...

 Oct 23 2014 - Coach asks Qatar to give it all against DPR KoreaThe Peninsula
(MENAFN - The Peninsula) Qatar's coach Felix Sanchez Bas has called on his players to give their all one-last time ahead of today's AFC U-19 Championship final against three-time winners DPR Korea. ...

 Oct 23 2014 - Qatar- Handball: Doha gears up for Asian Club LeagueThe Peninsula
(MENAFN - The Peninsula) Defending champions Al Jaish - thanks to the draw - have managed to avoid a meeting with local opponents Lekhwiya and Al Gharafa in the group stage of the 17th Asian Clubs ...

 Oct 23 2014 - QIMC posts USD38.88m net profit in SeptemberMENAFN
(MENAFN) Qatar Industrial Manufacturing Company (QIMC) revealed the interim financial statements for the period ending in September 30, this year, QNA reported.The interim financial statements ...

 Oct 23 2014 - Qatar will deliver an impressive 2022 World Cup, says BrescianoThe Peninsula
(MENAFN - The Peninsula) Australian midfielder Mark Bresciano is confident that Qatar will deliver an 'impressive' World Cup eight years down the line.Bresciano, who has been playing for the last two ...

 Oct 23 2014 - Qatar- QP hosts team from Kuwait Oil CompanyThe Peninsula
(MENAFN - The Peninsula) Qatar Petroleum (QP) recently hosted a delegation from Kuwait Oil Company (KOC) who visited Qatar to gain insights on QP's marine activities and port operations.Mubarak ...

more...


 






Google

 
 

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help