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 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
 Jan 25 2015 - Egyptian female cyclists pedal for acceptanceAFP
(MENAFN - AFP) Yasmine Mahmoud cuts a defiant figure as she weaves her bicycle through the chaotic streets of Cairo, a place where few women dare to pedal. Every day, like for the past four years, ...

 Jan 25 2015 - Oman's Suez subsidiary signs USD37m landfill contractMENAFN
(MENAFN) Suez Environment via its local subsidiary Sita Al Basheer has won a contract to design, build and operate the expansion of the landfill site for five years. The total amount of the contract ...

 Jan 25 2015 - Saudi- Kingdoms economy expected to expand 3.22 this yearArab News
(MENAFN - Arab News) DUBAI: Cheap oil will slow growth in most Gulf Arab economies this year but heavy spending by governments and healthy private sector activity will prevent any serious slump a ...

 Jan 25 2015 - Egypt awards USD112.04m contract for rail systemMENAFN
(MENAFN) Egyptian National Railways (ENR) said that it has awarded Alstom a USD112.04 million contract for the supplying of signaling equipment for the Beni Suef-Asyut line in Egypt, as well as its ...

 Jan 25 2015 - UAE's inflation hits 6-year high in DecemberMENAFN
(MENAFN) According to the figures released by the United Arab Emirates National Bureau of Statistics, the increase by more than 5 percent in the housing and utility costs led the UAE's inflation rate ...

 Jan 25 2015 - Dubai's Drake & Scull unit wins USD49m contractMENAFN
(MENAFN) Dubai's Drake & Scull International (DSI) said that one of its subsidies won a USD49 million engineering contract in the emirate, Gulf Business reported.Under the signed contract, the ...

 Jan 25 2015 - Dubai's Deyaar net profit down 43 percent in Q4MENAFN
(MENNAFN) Dubai's Deyaar Development said that it has registered a decline by 43 percent in its net profit during the October-December period of 2014, Gulf Business reported.During the fourth quarter ...

 Jan 25 2015 - Renault's GCC sales up 44 percent in 2014MENAFN
(MENAFN) Renault announced that it has registered a 44 percent increase in its sales within the region during 2014, which led by Dubai resulted in the manufacturer selling 23.626 vehicles, Emirates ...

 Jan 25 2015 - Sharjah firm to build solar power plantMENAFN
(MENAFN) Bee'ah, a Sharjah-based waste management company, announced that it is planning to build a solar power plant in the emirate with a capacity to generate more than 20 megawatts, Emirates 24/7 ...

 Jan 25 2015 - Bahraini JBG invest USD2.44m on expansion in GCCMENAFN
(MENAFN) Bahrain-based Jawad Business Group (JBG) announced that it was planning to expand its business in the UAE and the GCC by opening 10 new stores this year, with an investment of over USD2.44 ...

more...


 






Google

Electronic & Mobile Payment

 
 

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