Issue  No.55
4 January 2016

This report is designed to give you a snapshot about the MENA region tackling multiple issues:


        37.95  USD        1,070  USD


    Economic Outlook

  • To sustain economic growth, Dubai plans to increase its spending by 12% in 2016 up from 41.2 BN AED last year to 46.1 BN AED mainly investing in infrastructure. It is worth noting that the rise in spending will be backed by the expected rise in revenues.
  • Oman's government has planned to cut 2016 general budget's deficit by 27% from an actual 4.5 BN OMR deficit in 2015 to 3.3 BN OMR this year. It is worth mentioning that the deficit amounts to 13% of the country's GDP
  • Qatar's Ministry Of Development Planning And Statistics has announced that the country's Q3 2015 real GDP growth has slowed down to reach 3.8% y-o-y compared to 4.8% growth in the previous quarter.
  • To bridge its budget deficit caused by low oil prices, Oman's government has planned to cut subsidy spending by almost two thirds this year, in addition, It plans to cover the gap with 1.5 BN OMR worth of reserves, 900 MN OMR in borrowing from the international market, 600 MN OMR of grants, and 300 MN OMR of borrowing from the local market, the ministry said.
  • Saudi Arabia's finance minister announced that the country is planning to introduce value added tax (VAT) within 2 years amid the country's plans to tackle its budget deficit caused by low oil prices. It is worth mentioning that this year's projected deficit amounts to 98 BN USD.
  • Due to falling tourism revenues, Egypt's central bank announced that the country's current account deficit has doubled to 4 BN USD in the first quarter of the current fiscal year, compared to 1.6 BN USD of the same period last year.
  • According to the National Commercial Bank report, Saudi's projected GDP growth rate will reach 2.3% as oil markets are expected to remain in a low range of around 40-80 USD/bbl during 2016-2020.
  • Jordan's exports have dropped by 6.1% in the first 10 months of 2015 compared to the same period of the previous year amounting to 4.65 BN JOD. On the other hand, in the same period of 2015 imports fell by 10.3% compared to the first 10 months of 2014.
  • Due to falling crude oil prices, Algeria's energy earnings has dropped by 42.4%, as a result, the country posted a trade deficit of 12.62 BN USD for the first 11 months of 2015 against 5.45 BN USD surplus during the same period of 2014.
  • Amid falling oil prices, Saudi Arabia had to cut subsidies on fuel, asthe price of lower-grade petrol (Octane 91) for a liter was increased to 0.75 SAR from the current 0.45 SAR, a 67% rise, while the price of higher-grade unleaded petrol (Octane 95) was hiked to 0.90 SAR from 0.60 SAR, a hike of 50%.
  • Egypt's petroleum minister announced that the country's debts to foreign oil companies rose to 3 BN USD at the end of December 2015 form 2.7 BN USD at the end of October.
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