ECONOMY | Gulf Economies Seen Shrinking Sharply In 2020, To Pick Up In 2021: Reuters Poll

DUBAI – Economic activity in the Gulf will contract sharply this year before recovering in 2021, hit by the double shock of the coronavirus pandemic and an oil price crash, a quarterly Reuters poll showed on Tuesday.

Analysts in the July 7-20 poll see a deep economic contraction in the hydrocarbon – producing region this year as oil prices were hit on the supply and demand sides simultaneously.

Saudi Arabia’s GDP was seen shrinking 5.2% this year before rebounding to 3.1% growth next year. A similar poll conducted three months ago saw the region’s biggest economy and world’s largest oil exporter growing 1.0% in 2020 and 2.0% in 2021.

In March, a Saudi-Russian price was caused oil prices to plummet, and the Organization of the Petroleum Exporting Countries and its allies subsequently implemented output cuts.

‘Three months ago, most forecasts didn’t yet factor in the oil production cuts or the full extent of the COVID-19 fallout’, said Maya Senussi, senior economist at Oxford Economics, adding that limiting the Hajj Pilgrimage, an important source of tourism revenue, also weighed on Saudi Arabia’s outlook.

Kuwait’s GDP was seen shrinking the most out of the six Gulf Cooperation Council (GCC) members, contracting 6.1% in 2020 before 2.5% next year. Three months ago, it was seen shrinking 2.9% in 2020 and growing 2.0% next year.

Medians forecast a 5.1% contraction for the United Arab Emirates’ economy this year and 2.6% growth in 2021. Three months ago, they expected the economy to shrink 0.4% this year.

Tourism, a major source of revenue for the Emirate of Dubai, has been hit hard by lockdown measures and travel restrictions.

‘We expect revenues for the tourism and hospitality sectors to be under particular pressure given an expected sharp decline in the visitors numbers’, S&P Global Ratings said in a research note, adding that it continues to observe ‘broad-based pressures across various sectors’ in the GCC.

Qatar, Oman and Bahrain’s outlooks also worsened for this year, with analysts expecting their economies to shrink 4.0%, 4.7% and 4.4.% respectively. Their growth outlooks for 2021 improved from expectation three months ago.

‘While actively is now picking up across much of the region as lockdown restrictions are relaxed, the pace of recovery in H2 and beyond may disappoint, particularly with the coronavirus set to linger’, Oxford Economics said in a research note.


Saudi Arabia To Invest $3.4 Bln In Vaccine,Biomedical Drugs Sector

PARIS, France – Saudi Arabia’s industry and Mineral Resources said on Friday the country would invest $3.4 billion in the vaccine and biomedical drugs sector, according to state news agency SPA. The Minister Bandar Alkhorayef, who heads the newly – established vaccines and biopharmaceutical industry committee, said the move is part of the kingdom’s push … More Saudi Arabia To Invest $3.4 Bln In Vaccine,Biomedical Drugs Sector

Saudi Arabia’s Crown Prince Arrives In Egypt, Will Visit Jordan And Turkey Next

PARIS, France – Saudi Arabia’s Crown Prince Mohammed bin Salman arrived in Egypt on Monday and was welcomed by Egyptian President Abdel – Fattah el Sisi, state news agency SPA reported. The Crown Prince’s visit to Egypt is part of a tour that will include visiting Jordan and Turkey next. The visits were based on … More Saudi Arabia’s Crown Prince Arrives In Egypt, Will Visit Jordan And Turkey Next

Sheikh Mansour Bin Zayed Establishes National Media Office in UAE

PARIS, France – Sheikh Mansour bin Zayed, the UAE’s deputy prime minister and minister of presidential affairs, on Wednesday launched the National Media Office. The unit is tasked with developing the media sector, legislation, regulations, and decisions on media development while also monitoring the implementation of legislation in coordination with the relevant authorities and administrative … More Sheikh Mansour Bin Zayed Establishes National Media Office in UAE

Abu Dhabi’s Mubadala And EQT Fund To Buy Sweden’s Envirotainer

PARIS, France – Abu Dhabi state fund Mubadala and a fund managed by European buyout firm EQT have agreed to buy Envirotainer, a Swedish company which leases out cold containers for shipping temperature – sensitive healthcare products. Mubadala and the EQT X fund are buying the company from European buyout firm Cinven and Denmark life … More Abu Dhabi’s Mubadala And EQT Fund To Buy Sweden’s Envirotainer

Russia’s Lavrov To Meet With GCC Ministers In Riyadh On Wednesday – Officials

PARIS, France – Russian Foreign Minister Sergei Lavrov will visit Saudi Arabia on Wednesday where he will meet with the foreign ministers of the Gulf Cooperation Council Countries (GCC), two Gulf officials said on Tuesday. Lavrov is expected to meet with ministers of Saudi Arabia, the United Arab Emirates, Oman, Kuwait, Bahrain and Qatar in … More Russia’s Lavrov To Meet With GCC Ministers In Riyadh On Wednesday – Officials

Dubai Cooling Firm Empower Invited Banks To Pitch For IPO – Sources

DUBAI – Dubai’s Emirates Central Cooling System Cooperation (Empower) has invited investment banks to pitch for roles in its planned initial public offering, which is slated for later this years, two sources with direct knowledge of the matter said. Empower, which is part owned by Dubai Electricity and Water Authority (DEWA), has asked banks to … More Dubai Cooling Firm Empower Invited Banks To Pitch For IPO – Sources

Loading…

Something went wrong. Please refresh the page and/or try again.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s