Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

QNB Group: Global Integration Could Raise MENA Growth Prospects  Join our daily free Newsletter

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



(MENAFN - Qatar News Agency) The weekly analysis of Qatar National Bank Group (QNB) expected the Gulf Cooperation Council (GCC) countries to lead the growth in the Middle East and North Africa (MENA) region



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 press release



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% in 2013, compared with 1.2% in the rest of MENA. This is relatively sluggish compared with potential and historical average MENA growth of around 5% 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 USD30bn in Qatar and USD25bn in Kuwait. Meanwhile, Dubais 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 USD50bn 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.

 


Qatar News Agency




  MENA News Headlines
 Apr 26 2015 - Key Jordan trade route cut after Syria border closureAFP
(MENAFN - AFP) When security fears forced Jordan to close its last border crossing with Syria this month, it severed its most important trade route to the outside, further straining an economy ...

 Apr 26 2015 - England cruises to nine wicket triumph over WindiesArab News
(MENAFN - Arab News) ST. GEORGE'S Grenada: England ended a wait of two-and-a-half years and 10 matches for Test success away from home with a nine-wicket win over the West Indies in the second Test ...

 Apr 26 2015 - Saudi- Canadian teenager Henderson leads Classic by 1 strokeArab News
(MENAFN - Arab News) DALY CITY California: Canadian teenager Brooke Henderson clung to a one-stroke lead after a poor finish to the third round at the Swinging Skirts LPGA Classic in California on ...

 Apr 26 2015 - Saudi- Witnesses to Everest avalanche: 'I knew I had to survive'Arab News
(MENAFN - Arab News) KATMANDU: At least 17 people were killed and 61 injured when an avalanche set off by Saturday's massive Nepal earthquake swept down the Himalayas. The snow and ice ripped through ...

 Apr 26 2015 - Saudi- Witnesses to Everest avalanche: 'I knew I had to survive'Arab News
(MENAFN - Arab News) KATMANDU: At least 17 people were killed and 61 injured when an avalanche set off by Saturday's massive Nepal earthquake swept down the Himalayas. The snow and ice ripped through ...

 Apr 26 2015 - Morsi's trial 'badly flawed': HRWDaily News Egypt
(MENAFN - Daily News Egypt) Human Rights Watch (HRW) described the first trial of former president Mohamed Morsi as "badly flawed", in a statement on Sunday.The watchdog added in its statement that ...

 Apr 26 2015 - Egypt returning to central role in world: MehlebDaily News Egypt
(MENAFN - Daily News Egypt) The State Information Service (SIS) hailed Prime Minister Ibrahim Mehleb's visit to Indonesia Sunday as "a message that Egypt has made a strong return to its natural and ...

 Apr 26 2015 - Egypt- Feud between Mortada Mansour and UWK continuesDaily News Egypt
(MENAFN - Daily News Egypt) The Criminal Court postponed to 10 May the trial of 21 Ultras White Knights (UWK) members on charges of the attempted murder of the Al-Zamalek club's president Mortada ...

 Apr 26 2015 - New Mondelez Egypt production-line investments are worth EGP 200 m: Managing directorDaily News Egypt
(MENAFN - Daily News Egypt) The Mondelez chocolate company has launched a new production-line under the name of "Marvellous Creations", according to Bassil Abul-Ata, Managing Director of Mondelez ...

 Apr 26 2015 - 6 banks request Citibank Egypt retail business acquisitionDaily News Egypt
(MENAFN - Daily News Egypt) Six banks have requested to acquire Citigroup's retail business in Egypt, with the Central Bank of Egypt (CBE) on top of the acquisition discussions, a Citibank Egypt ...

more...


 






Google

Arab Advisors_12th convergence conf

 
 

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