...Oil Economies and Globalization: The Case of the GCC Countries Yousif Khalifa Al-Yousif Email: subhanah@emirates.net.ae Key Words: Oil, GCC Countries, Gulf JEL codes: G18, Q32, O47 Introduction Over the past 50 years, world trade has increased at a faster rate than world output. Between 1948 and 1999, merchandise exports grew by 6% in real terms, compared to an annual average output growth of 3.7% (World Trade Organization, 1998: 33-36). This means that today, the countries depend more on trade than they had following World War II. In other words, the world economy is becoming more integrated and more globalized. So, what forces have been driving this phenomenon? Is globalization a positive force in the economic development of the third world countries? Does globalizations have any downsides and if so, how can the world community deal with the downsides? What are the challenges and opportunities with which globalization presents the Gulf Cooperation Council (GCC) economies? How can these countries harness the winds of globalization in ways that help them realize their development goals? The answers to these questions will provide a better understanding of globalization and its economic implications for the GCC economics and the rest of the world. The rest of the paper is organized as follows. First, there is a brief discussion of the major forces behind the increasing globalization of the world economy in recent decades as well as the alternative views of the implications...
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...Global Financial Crisis: impacts, solutions and predictions in GCC countries. Since the end of 2007 and the beginning of 2008, the world has been suffering from the global financial crisis. It is believed to be the worst financial crisis in 60 years at least since the Great Depression in 1930s, due to the speed, scope, and scale of its impact. The huge difference distinguishes the contemporary crisis from the others is that the other crises were concerned with economic inflation and the current one is concerned with economic deflation. The global financial crisis has started in America, then crossed the Atlantic before going global. It began in the mortgage markets of the United States and erupted through financial markets (Savona, Kirton, Oldani 3). Many factors have contributed to the economy's recession, where signs of housing bubble problem were seen at the end of 2007. Caused by low interest rates beginning on January 3, 2001, and ignored by regulatory agencies, Americans borrowed excessively for home mortgages and this phase lasted to 2004. After that, from June 30, 2004, interest rates started to rise which led to the mortgage being unbearable and eventually subprime. This phase was marked by the increasing foreclosures and it extended from 2005 to 2007. This lead us to the conclusion that global financial crisis occurred due to easy monetary policies along with tax cuts and to failure of regulatory arrangements (Desai 1-3). This was the origin of the global financial...
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... Mag P ees ra etr E R P A C MMISO U OEN O S IN Economic Papers are written by the Staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission. Comments and enquiries should be addressed to: European Commission Directorate-General for Economic and Financial Affairs Publications B-1049 Brussels Belgium E-mail: Ecfin-Info@ec.europa.eu This paper exists in English only and can be downloaded from the website ec.europa.eu/economy_finance/publications A great deal of additional information is available on the Internet. It can be accessed through the Europa server (ec.europa.eu) KC-AI-10-415-EN-N ISSN 1725-3187 ISBN 978-92-79-14901-6 doi 10.2765/42450 © European Union, 2010 Reproduction is authorised provided the source is acknowledged. The Changing Pattern in International Trade and Capital Flows of the Gulf Cooperation Council Countries in Comparison with Other Oil-Exporting Countries Marga Peeters1 Abstract During the past decade the GCC countries have achieved a remarkably high degree of trade and financial integration in the world economy. Before the global crisis began, they invested their abundant oil income which resulted from high energy prices...
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...The GCC in 2020 Outlook for the Gulf and the Global Economy A report from the Economist Intelligence Unit Sponsored by the Qatar Financial Centre Authority The GCC in 2020: Outlook for the Gulf and the Global Economy About this research T he GCC in 2020: Outlook for the Gulf and the Global Economy is a white paper written by the Economist Intelligence Unit and sponsored by the Qatar Financial Centre (QFC) Authority. The findings and views expressed in this briefing paper do not necessarily reflect the views of the QFC Authority, which has sponsored this publication in the interest of promoting informed debate. The Economist Intelligence Unit bears sole responsibility for the content of the report. The author was Jane Kinninmont and the editor was Rob Mitchell. The findings are based on two main strands of research: l A programme of in-depth analysis, conducted by the Economist Intelligence Unit, which drew on its own long-term forecasts and projections for the six GCC economies, along with other published sources of information. l A series of interviews in which economists, academics, and leading experts in the development of the GCC were invited to give their views. In some cases, interviewees have chosen to remain anonymous. Our sincere thanks go to all the interviewees for sharing their insights on this topic. March 2009 © The Economist Intelligence Unit Limited 2009 The GCC in 2020: Outlook for the Gulf and the Global Economy Executive summary ...
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...Scope of Glass Solution in the Middle East Countries Objective: The objective of the research is to know about the market that is prevailing in the Gulf Co-operation Council (GCC) countries and to know about the scope of the glass in these countries in the near future. Executive Summary: It is inevitable that infrastructure is one of the main criteria for a country’s GDP growth. Infrastructure includes construction of airports, ports and rails. Real Estate is a booming market in Middle East especially in Dubai and Saudi Arabia in recent years since 2008when the market crashed. This research includes the study about architects, builders and Glass installers who have their base in UAE, Saudi Arabia and Qatar. In most of the countries glass is considered as one of the main structural material for both exteriors and interiors. Due to the financial crisis in the year 2008 many of the projects were put on-hold in the GCC countries. After five years, the market is on a move as many projects have been announced and on-hold projects have started to resume its process. This is very much clear from the fact that as much as $35billion contracts have been awarded to the civil construction sector by the end of year 2013. It is expected that spending in the construction sector is expected to remain in the range of $25billion-$35billion in the upcoming years. Civil construction is one of the major sectors which are awarded the most number of contracts. Almost $15billion worth of contracts...
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...GCC Pharmaceutical Industry March 31, 2013 Alpen Capital was awarded the “Best Research House” at the Banker Middle East Industry Awards 2011 GCC Pharmaceutical Sector | March 31, 2013 Page | 2 Table of Contents 1. 1.1. 1.2. 1.3. 1.4. EXECUTIVE SUMMARY............................................................................ 6 Scope of the Report .................................................................................. 6 Key Growth Drivers .................................................................................. 6 Key Challenges ........................................................................................ 6 Trends .................................................................................................... 7 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 GCC PHARMACEUTICAL INDUSTRY OVERVIEW ...................................... 8 GCC Pharmaceutical Market Overview ............................................................. 8 The UAE Pharmaceutical Market .................................................................... 11 The Saudi Arabian Pharmaceutical Market ...................................................... 13 The Kuwaiti Pharmaceutical Market ............................................................... 15 The Qatari Pharmaceutical Market ................................................................. 16 The Bahraini Pharmaceutical Market .............................................................. 17 The...
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...Response The GCC countries performed well during the 2003–08 oil boom, but the boom also presented challenges. Buoyant economic activity, rising consumer and investor confidence, and abundant liquidity spurred excessive credit growth, inflation, and asset price increases. In addition, in some countries, banks’ growing dependence on foreign financing and exposure to real estate, construction lending, and—to a lesser extent—the equity market, contributed to balance sheet vulnerability in the event of a slowdown in economic growth and a decline in asset prices. In the corporate sector, the boom was associated with higher leverage, which increased the sector’s vulnerability to the availablitity and cost of financing. As the global economic crisis took hold, the GCC countries were affected through trade and financial channels. By the second half of 2008, GCC government finances and external positions were directly affected by the decline in oil prices and demand. At the same time, GCC countries underwent reversals of speculative capital inflows experienced in 2007 and early 2008. These developments tightened liquidity conditions and affected investor confidence, and were further exacerbated by Lehman’s collapse in September 2008 and the ensuing global liquidity shortages and deleveraging. GCC financial sector imbalances came to the fore, especially in the United Arab Emirates (U.A.E.), Kuwait, and Bahrain, given these countries’ close linkages with global equity and credit markets. A forceful...
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...1.4 Threats 13 4 Conclusion 13 5 References 15 * Introduction Emirates Global Aluminium or popularly referred to as EGA was co-owned by Investment corporation of Dubai and Mubadala Development Company of Abu Dhabi. The company is a conglomerate which deals in alumina or bauxite and smelting aluminium. The core smelter assets are EMAL(Emirates Aluminium) and DUBAL (Dubai Aluminium) with a net production of 2.4 million tons in a year. There are significant plans in the purview of the company to experience growth through local as well as international expansion. It is a prestigious organization with a global ranking of five amongst the aluminium producers. The organization is renowned for not only its production size but also the work culture and promoting health and safety of employees and people associated with the company as well as for investing in the economic and social development of the community (RT, 2013). The very concept of regional or economic integration internationally is on the rise as more and more companies are forming conglomerations to forge partnerships to bring about revolutions in trade by developing businesses to sustain the trade on a global platform. The integration can be a manifestation of free trade areas or a union to capture markets beyond the reach of a single entity, or can be simple union of political entities to gain control over a region (King, 2001). The idea behind having a global platform or an arena for businesses is to...
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...World Economic and Financial Sur veys Regional Economic Outlook Middle East and Central Asia 09 I N T E R N A T I O N A L M O N E T A R Y M AY F U N D W o r l d E c o n o m i c a n d F in a n c i a l S u r v e y s Regional Economic Outlook Middle East and Central Asia •••••••••••••••••••••• 09 I N T E R N A T I O N A L M O N E T A R Y F MAY U N D ©2009 International Monetary Fund Cataloging-in-Publication Data Regional economic outlook : Middle East and Central Asia. – [Washington, D.C.] : International Monetary Fund, 2009. p. ; cm. – (World economic and financial surveys, 0258-7440) ISBN 978-1-58906-842-1 “MAY09.” Includes bibliographical references. 1. Economic forecasting – Middle East. 2. Economic forecasting – Asia, Central. 3. Middle East – Economic conditions. 4. Middle East – Economic conditions – Statistics. 5. Asia, Central – Economic conditions. 6. Asia, Central – Economic conditions – Statistics. I. International Monetary Fund. II. Series: World economic and financial surveys. HC415.15.R445 2009 Please send orders to: International Monetary Fund, Publication Services 700 19th St. N.W., Washington, D.C. 20431, U.S.A. Tel.: (202) 623-7430 Fax: (202) 623-7201 E-mail: publications@imf.org Internet: www.imfbookstore.org The views expressed in this publication are those of the contributors...
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...PROSPECTUS Sale of 4,500,000 shares representing 30% of Almarai Company Through an Initial Public Offering at an Offer Price of SAR 512 per share ALMARAI COMPANY A Saudi Joint Stock Company (under conversion) in accordance with Ministerial Resolution No. 773 dated 6/5/1426H (Corresponding to 13/6/2005G) Offering Period: 27/5/1426H to 7/6/1426H (Corresponding to 4/7/2005G to 13/7/2005G) Almarai Company Limited (“Almarai” or the “Company”) was formed as a Saudi limited liability company with Commercial Registration Number 1010084223, dated 19/12/1411H (corresponding to 1/7/1991G). The Minister of Commerce and Industry has, pursuant to resolution No. 773 dated 6/5/1426H (corresponding to 13/6/2005G), authorized the conversion of the Company from a limited liability company into a joint stock company. The share capital of the Company is SAR 750 million consisting of fifteen (15) million shares with a nominal value of SAR 50 each. Following completion of the Offering (as defined below) and the conclusion of the Conversion General Assembly, an application will be submitted to the Minister of Commerce and Industry requesting him to announce the conversion of the Company. The Company will be considered duly converted into a joint stock company from the date of issuance of the Ministerial Resolution declaring its conversion. The Initial Public Offering (the “Offering”) of 4,500,000 shares (the “Offer Shares”) with a nominal value of SAR 50 each, all of which are fully paid, and...
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...21-22. * Conclusion………………………………….page 23. * References………………………………….page 24. I. Exchange Overview: In mid 1990s, stocks were traded through some unlicensed and unspecialized offices acting as intermediaries. This resulted in lack of transparency, and unfairness of stock pricing. The pressing need for a regulated and organized stock market that guarantee the protection of investors' interests by adopting modern mechanism for settling stocks' prices according to demand and supply led to the issue of the Emiri Decree No. 14 of 1995, founding the Doha Securities Market (DSM). Two years after the Emiri Decree Issuance, Doha Securities Market commenced its operations in May 26, 1997 with 17 companies and approximately 6 billion QR in market capitalization. Today, the Doha Securities Market (DSM) is known as Qatar Stock Exchange with 43 listed companies with market capitalization around USD 175.328 billion ( QAR 638.194 billion). Qatar Stock Exchange is a member of World Federation of Exchanges and was upgraded to emerging markets status in June 2014. II. Regulator: The Qatar Financial Centre (QFC) is the financial and business centre established by the Government of Qatar in 2005 to...
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...to the Arab Gulf United Arab Emirates Prepared by Bayliss Associates Pty Limited Part I: A brief overview of the United Arab Emirates 4 The formation of the United Arab Emirates 4 The Government of the United Arab Emirates 5 The United Arab Emirates Economy 5 Basic demographics 5 GDP trends 5 Oil and the UAE 6 Gas – the Dolphin project 6 Oil pipelines 6 Bunkering 6 Non-oil sector 6 Jebel Ali Port 7 Jebel Ali Free Zone (JAFZA) 7 Transhipment 7 Air travel 7 Tourism 8 The property boom 8 Part II: The Market Environment 8 Characteristics of the UAE market 8 Investment environment 9 Sovereign Wealth Funds (SWFs) 9 Foreign Trade 10 Australian bilateral relations 10 Australian business 10 Taxation 10 Legal environment 10 Tenders 11 Part III: Doing Business in the United Arab Emirates 11 Practical advice on entering the market 11 Where to get advice and help 11 Developing a strategy 12 Market research 12 Visiting the UAE 13 Visas 13 Time your visit well 13 Local holidays 13 Arriving in the UAE 13 Getting around 13 Visit programs 14 Hotels 14 Tips and tricks 14 Trade missions 15 Missions to Australia 15 Trade exhibitions 15 Health and safety 15 Personal behaviour 15 Import Procedures 15 Customs and regulatory environment 15 Documentation 16 Packaging and labelling 16 Agency representation 16 Professional services 17 Franchising 17 Review of options for representation in the UAE. 18 Major industry sectors in...
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...Ras Al Khaimah (UAE) December 2009 Contents Executive Summary Introduction The Changing Nature of Global Manufacturing The Changing Nature of Supply Chain Global Automotive Production & Major Players Automotive Production in the Middle East GCC Automotive Sector GCC Economic Outlook-Macro-economic Indicators GCC Macro-economic Indicators GCC Auto Industry SWOT Outlook for GCC Automotive Sector GCC Competitive edge Vehicle Assembly in GCC GCC Source of imports GCC Highlights-Foreign trade in Automotive sector UAE Automotive Sector UAE Auto Industry SWOT UAE Economic SWOT UAE Business Environment SWOT UAE Automotive Sector trade Automotive Manufacturing in UAE Low cost and Luxury car market in UAE Used Car Market in UAE After- sales Business in UAE Car Rental Market in UAE Rationale for setting up projects in RAK Identified Projects UAE Auto Industry Forecast Scenario Automotive Products & Free Trade Agreements About Ras Al Khaimah About RAK Investment Authority References Annexure I II III IV V-A V-B VI-A VI-B VII VIII IX X World Motor Vehicle Production By Country And Type In 2008 World Ranking of Vehicle Manufacturers In 2008 UAE Imports & Re-exports of Vehicles in value term List of Automobile Component Manufacturers in GCC UAE Trade figures on components 2006-1008 In value term UAE Trade figures on components 2006-1008 In Numbers UAE Trade on Tyre & Tyre Products-2008 UAE Trade on Tyre & Tyre Products-2007 Key Global Tyre Manufacturers Contact Details UAE Trade on Vehicle...
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...after 1970 and were interconnected to other industries. It is a huge capital financed mostly by loans, with high cost that requires development, design and management. The demand for aviation service is increasing strongly in the Middle East, particularly in GCC countries due to oil production, high income, expatriate population and business diversified opportunities beside other factors. To meet the increasing demand for travel, new airlines were established for this purpose such as Wataniya, Jazeera, Air Arabia, and flydubai . The operating performance of the new airlines was affected by political instability in the region which reduced tourism and raised the oil price; in general it affected the airline performance. Fuel is the main key of the airline’s operating expenses, when fuel prices increase it will affect the airlines’ profitability and financial flexibility. Recently, the fuel prices have reached over USD100 per barrel which affected airlines profits. During the economic crisis, the airlines lowered the flight prices in order to attract passengers which lowered their profitability. Despite the financial crises, airline companies follow certain plans and procedures to recover, depending on the limited means of transportation in GCC region and the continuous travel demand from expat to their origin There are 39 airlines operating in GCC(table no. 1), of which, only 3 are publicly listed, 2 of which are in Kuwait. The airline business in the region is exposed to strong...
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...Islamic Banking and Finance: History Development Slide #1 Some Issues History Of IBF Development of IBF -Overview- 2. Islamic Banking and Finance: History and Development History and Development of IBF in Bahrain Full Fledged IB vs. IB windows • Word ‘bank’ comes from the word ‘banco’ - A table or a bench on which Italian money-changers used to display their monies and records and conduct their transactions History of Islamic Banking and Finance • Arabic financial and economic system preIslam – Trading based arrangements were common • Bay’ al-musawamah (bargaining) • Bay’ al-muzayadah (auctioning) • Bay’ al-amanah (trust sale) – Al-murabahah (resale with profit) – Al-tawliyyah (resale at cost) – Al-wadiah (resale at loss or below cost) History of IBAF- (2) – Barter trade was common – Al-sarf (money exchange) • Lack of standardization – for e.g., 10 grams of gold in coin form = 15 grams of gold in bracelet form – Institutionalization of riba – Widespread gharar and maysir – Monopoly, fraud and economic injustice was common History of IBAF- (3) • With the advent of Islam, – Eradication of riba institutions and practices – Eradication of gharar transactions – Institutionalization of fair and equitable markets • No monopoly, fraud • Standardization of money and commodity exchanges – Hadith on the six commodities – Islamization of many business organizations and institutions • Mudarabah, musyarakah, salam, muzara’ah (sharecropping or partnership...
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