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GCC companies rake in record profits in Q3 as economic activity gains strength
November 29, 2021--The energy sector reported the biggest absolute profits in the region, says Kamco Invest
Listed companies in the GCC region saw their financial earnings hit a record high of $55.5 billion during Q3 2021, more than double on a year-on-year (y-o-y) and 23 percent on a quarter-on-quarter (q-o-q) basis.
A report on corporate earnings by Kamco Invest said that higher profitability reflected accelerated economic activity in the region with the PMI figures for Saudi Arabia and UAE consistently and comfortably above the growth mark of 50 at 57.7 and 55.7 during October 2021, respectively.
IMF-Regional Economic Outlook for the Middle East and Central Asia, October 2021-A fragile recovery continues in the Middle East and Central Asia region
October 19, 2021--The region has made good progress since the beginning of the year, but new challenges have emerged. They include a pandemic wave in countries with weak vaccination progress and rising inflation, which has contributed to declining monetary policy space, adding to the difficulties posed by limited fiscal policy space. Additionally, divergent recoveries and concerns about economic scarring persist.
Inequities are also on the rise, and countries will need to tackle the pandemic's impact on debt, labor markets, and the corporate sector. Countries will face difficult tradeoffs amid this challenging environment as they continue to manage the current crisis. Ramping up vaccine acquisition and distribution remains the most urgent short-term priority. Additional support should be well targeted, and central banks may need to raise interest rates if inflation expectations start to increase. Improving policy frameworks will be important to reduce policy tradeoffs. Preparing for a new chapter by investing in a transformational recovery will be vital to the region's future. Important priorities include reorienting the role of the state toward health, education, and social safety nets; leveraging global trends like digitalization; and investing in climate-resilient technology.
view the IMF Regional Economic Outlook for the Middle East and Central Asia, October 2021
Abu Dhabi launches $1.4 bln IPO fund to boost stock market
October 14, 2021--Abu Dhabi's Supreme Council for Financial and Economic Affairs on Tuesday launched a $1.4 billion (Dh. 5 billion) IPO fund to strengthen Abu Dhabi Securities Exchange (ADX) as a leading stock market, according to the emirate’s media office.
The Abu Dhabi IPO Fund will act as a catalyst to strengthen Abu Dhabi Securities Exchange (ADX)'s position as a leading stock market.
MENA Economic Update: Overconfident: How Economic and Health Fault Lines Left the Middle East and North Africa Ill-Prepared to Face COVID
October 7, 2021--This edition of the World Bank MENA Economic Update estimates that the Middle East and North Africa (MENA) region's economies, which contracted by 3.8% in 2020, will grow by 2.8% in 2021. Overall, the output cost of COVID-19 so far in MENA is almost $200 billion, a number estimated by comparing the region's forecast GDP level with a scenario where there was not any COVID.
The report predicts that the economic recovery will be both tenuous and uneven, with per capita GDP, which is a more accurate measure of people's standard of living, increasing by only 1.1% in 2021 after declining an estimated 5.4% in 2020. The report estimates that 13 of 16 countries covered in the macroeconomic forecasts will have lower standards of living than prior to COVID. The region's recovery will also depend on a rapid and equitable rollout of vaccines, while for some countries additional growth risks are posed by ongoing political uncertainty.view more
IMF Staff Completes 2021 Article IV Mission to the United Arab Emirates
September 30, 2021--The economic recovery has begun to gain momentum, helped by the UAE's early and strong response to the Covid-19 pandemic, successful vaccination program, increased tourism, and activity related to the delayed Expo 2020.
Going forward, support measures should be increasingly targeted to viable sectors and firms and supporting people most in need.
Smoothly adjusting to a successful, and more environmentally sustainable, growth model requires reforms to deliver sustainable fiscal outcomes and efficient implementation of the ambitious structural reform agenda.
GCC asset managers expect stronger inflows, demand for ESG and Islamic investing
September 20, 2021-Asset managers in Gulf Cooperation Council (GCC) countries expect increased inflows over the next 12 months amid growing demand for Islamic and environmental, social and governance (ESG)-compliant investments, according to Moody's 2021 survey of chief investment officers (CIOs) from eight leading GCC fund firms.
"Half of CIO respondents expect double-digit growth in net inflows, and another 33 percent foresee a high single-digit increase," Vanessa Robert, VP-Senior Credit Officer at Moody's Investors Service, said in a report on Monday.
UAE aims $1trln business with Israel in next 10 years
September 14, 2021--Central Bureau of Statistics data shows that UAE and Israel have done business worth around $570mln after signing Abraham Accords.
The UAE is planning to improve economic relations with Israel to more than $1 trillion in the next 10 years, Bloomberg reported citing Economy Minister Abdulla Bin Touq.
The UAE has signed more than 60 MoUs with Israel after normalising relations in 2020 and is expecting an "influx" of trade in the next two years, Bin Touq told a virtual conference from the U.S., the report said.
UAE to sign trade deals with 8 countries; seize new investment opportunities
September 6, 2021--The economic partnerships are expected to increase the UAE’s current trade volume of Dh257 billion to Dh40 billion annually
The UAE is signing comprehensive economic partnership agreements with eight countries to consolidate its position as a gateway for global trade and investment.
The deal with India, Indonesia, Turkey, UK, Israel, Kenya, South Korea and Ethiopia will widen its access in the emerging markets and fuel the emirate's future economic growth.
The agreements are vital as the UAE aims to double its economy from Dh1.4 trillion to Dh3 trillion in the next 10 years. The economic partnerships are expected to increase the UAE's current trade volume of Dh257 billion with these markets to Dh40 billion annually.
UAE economy to grow at over 4% this year
September 6, 2021--Minister Abdulla bin Touq says over 30,000 jobs will be created
The UAE's economy is expected to grow by more than 4 percent this year, at a higher rate than previously forecast, Abdulla bin Touq, the minister of economy, said in an interview with Bloomberg television on Sunday.
The central bank had forecast 2.5 percent growth in December. Economic growth fell to around 6 percent in 2020, according to estimates from the International Monetary Fund.
The minister also said that more than 30,000 jobs would be created over the next year.
GCC equity markets broadly positive in August, UAE indices top
September 2, 2021--Key large-cap sectors boosted MSCI GCC index, says Kamco Invest
Most GCC equity markets, barring Oman, reported gains during August, according to the GCC Markets Monthly.
The MSCI GCC index posted gains for the tenth consecutive month during the month backed by gains in key large-cap sectors. The index closed at a seven-year high level on 17 August but as investors booked profits, the index receded towards the end of the month to close at 708.48 points, registering a monthly gain of 4.3 percent. This further pushed year-to-date (YTD) gains to 28.6 percent for the aggregate GCC index.
