IMF: Gulf economy recovering but faces oil volatility

Agencies
November 13, 2018

Dubai, Nov 13: Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.

The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 percent in 2018 and 3.0 percent in 2019, after a contraction of 0.4 percent last year.

Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues.

But “the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices,” the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA).

After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April.

Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 percent in 2018, from three percent the previous year, and pick up modestly to 0.9 percent in 2019, the IMF said.

“This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least,” the IMF said.

It projected Iran’s economy to shrink by 1.6 percent this year and 3.6 percent in 2019.

For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 percent in 2018, before dropping back to four percent next year, the IMF said.

This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said.

Oil revenues for MENA exporters have increased by about $260 billion over the period 2016 to 2018.

This has mostly been due to a price rise generated by production cuts in nations belonging to OPEC, as well as non-OPEC producers.

The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said.

The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE.

It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.

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News Network
January 16,2020

Dubai, Jan 16: The UAE Ministry of Climate Change and Environment on Wednesday announced that it has banned the import of birds, some eggs and meat products from Hungary and Slovakia.

The ministry said the decision was taken following a notification from the World Organization for Animal Health (OIE) on the outbreak of a highly pathogenic strain of bird flu, H5N2, in the two countries.

Accordingly, the ministry has banned "the import of all species of domestic and wild live birds, ornamental birds, chicks, hatching eggs, meats and meat products and non-heat-treated wastes from Hungary and Slovakia".

It has also regulated the import of poultry meat and non-heat-treated products, requiring a health certificate for the export of meat and meat products from the two countries to release consignments into the UAE.

A health certificate will be needed for the import of eggs, the ministry added.

However, thermally-treated poultry products (meat and eggs) have been cleared for import from all parts of Hungary and Slovakia.

Kaltham Ali Kayaf, Acting Director, Animal Development & Health Department at the ministry, said: "These measures reiterate the ministry's keenness in achieving its strategic objectives including enhancing bio-security levels and eliminating pathogens before they enter the country. In doing so, the ministry prevents the bird flu virus and related risks and impacts on the country's poultry health and safety, in addition to protecting public health and well-being."

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coastaldigest.com news network
June 16,2020

Dubai, Jun 16: In a humanitarian gesture, a UAE-based Pakistani businessman has come forward to offer free interim accommodation options to covid lockdown hit expatriates. 

The men benefitted from Ali Rao's housing initiative include Indians, Pakistanis and Africans. 

Inspired by the ongoing efforts taken by the UAE leadership to take care of all UAE residents, Ali Rao, CEO of Rao Holdings LLC in Dubai is offering free shared accommodation to unemployed male bachelors and workers, especially expatriates who do not have a place to stay.

Ali Rao currently has a capacity of 100 accommodation options that he wishes to offer to those who cannot afford house rent. 

"We have already placed 25 such men in these housing options spread across Al Quoz, Jebel Ali and Muhaisnah areas of Dubai," Ali Rao told local media. He works in collaboration with major charities in Dubai, who refer the cases to Rao.

"One of our companies - the property management division - deals with industrial housing accommodation. We decided to put this space to good use when I came across media articles that highlighted the plight of these homeless men," he said. 

Rao has already sheltered 25 homeless workers in the Al Quoz area. "We have received applications for 35 more, however, many of these men are due to return to their home countries, so we are awaiting confirmation from the charities," he explained. He has provided them with free Wi-Fi, bedding, blankets, bedsheets, and pillows.

"In one unit, we provide them with food and the other unit, social workers and the associated charities deliver food," he added. The housing is exclusively for men and not for women and families. "Many are seeking jobs, so they needed Wi-Fi. I went to the camps today and set up a Wi-Fi connection. Someone wanted to eat eggs, so we got him some eggs and rice. These are simple things most of us take for granted, but to many people this is vital," he added.

Since most of the residents are looking to return to their home countries, Rao is also in the process of providing them with air tickets.

"If the need arises, we will add more units," he explained. Rao said, "The ongoing pandemic has hit everyone hard, especially those with no security to fall back on. The economic and income disparities have only increased in this time, with those dependent on daily wages being rendered homeless in massive numbers across the globe."

He added, "I felt heartbroken and if I would stand by and watch, I would feel very small as a human being, I won't be able to stand in front of the creator I thought to myself. These are some very difficult times for all of us."

A beneficiary of the programme said, "I am very happy with this initiative as living outside in the summer is very difficult. It's very hot. I want to thank God and this company for providing me with a roof over my head."

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Agencies
June 5,2020

Expatriate workers who fail to abide by the coronavirus protocols in Kingdom of Saudi Arabia may face deportation, according to media reports.

“Individuals who fail to abide by preventive measures, including wearing medical or cloth face masks, failing to observe social distancing and refusing to have their temperatures taken, will be fined SR1,000. The fine will be doubled if the violation is repeated. Residents will be deported after paying the fines,” Okaz newspaper said.

Authorities called on people to report offenders by dialling the toll free number 999, except for the holy city of Makka, where the toll free number is 911.

As per the newly-revised Saudi protocols, social gatherings such as mourning or celebration events that take place inside homes, rest houses or farms, are allowed, but attendants should not exceed 50 persons.

The private sector is also required to adhere to precautionary measures: providing their staff with disinfectants and sanitisers, taking the temperatures of both staff and customers at the entrances of shopping malls.

Other measures include sterilising shopping trolleys and baskets after each use, sanitising facilities and surfaces, closing children’s play areas and fitting rooms in shopping malls and ready-wear outlets.

Authorities highlighted the need for all individuals and entities to abide by health safety rules, social-distancing protocol and the new guidelines set for social gatherings.

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