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    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Arab states imported 1.73 million agricultural commodities from Egypt

    Arab states imported 1.73 million agricultural commodities from Egypt

    Wheat yield boom boosts Oman’s food security

    Wheat yield boom boosts Oman’s food security

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt’s agriculture exports rise 17.2 percent in 5 months

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      Saudi: 53 new industrial licenses issued in April 2023

      Saudi: 53 new industrial licenses issued in April 2023

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Saudi transport authority approves 15 licensing, technical guides for railways

      Saudi transport authority approves 15 licensing, technical guides for railways

      Number of industrial decisions up by 10.56% to 356 in 2021

      Number of industrial decisions up by 10.56% to 356 in 2021

      Egypt’s macroeconomic conditions improving, says minister

      Egypt’s macroeconomic conditions improving, says minister

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

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      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Oman releases more Sultan Haitham City details

      Oman releases more Sultan Haitham City details

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Oman gears up for its first smart city

      Oman gears up for its first smart city

      Saudi real estate ‘booming’ on big office space demand

      Saudi real estate ‘booming’ on big office space demand

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        NEOM’s green hydrogen project is formally under execution: ACWA Power

        NEOM’s green hydrogen project is formally under execution: ACWA Power

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Total-led consortium to start drilling offshore Lebanon in September

        Total-led consortium to start drilling offshore Lebanon in September

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          Qatar: Over 700 hotel keys added in Q1

          Qatar: Over 700 hotel keys added in Q1

          Jordan’s tourism income surges 88% as visitors flock to the country

          Jordan’s tourism income surges 88% as visitors flock to the country

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Leisure sector in Qatar stronger after World Cup 2022

          Leisure sector in Qatar stronger after World Cup 2022

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

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        • Agrofood
          • All
          • Agriculture
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          • Food
          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Arab states imported 1.73 million agricultural commodities from Egypt

          Arab states imported 1.73 million agricultural commodities from Egypt

          Wheat yield boom boosts Oman’s food security

          Wheat yield boom boosts Oman’s food security

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics
            Saudi: 53 new industrial licenses issued in April 2023

            Saudi: 53 new industrial licenses issued in April 2023

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Saudi transport authority approves 15 licensing, technical guides for railways

            Saudi transport authority approves 15 licensing, technical guides for railways

            Number of industrial decisions up by 10.56% to 356 in 2021

            Number of industrial decisions up by 10.56% to 356 in 2021

            Egypt’s macroeconomic conditions improving, says minister

            Egypt’s macroeconomic conditions improving, says minister

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Oman releases more Sultan Haitham City details

            Oman releases more Sultan Haitham City details

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Oman gears up for its first smart city

            Oman gears up for its first smart city

            Saudi real estate ‘booming’ on big office space demand

            Saudi real estate ‘booming’ on big office space demand

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              NEOM’s green hydrogen project is formally under execution: ACWA Power

              NEOM’s green hydrogen project is formally under execution: ACWA Power

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Total-led consortium to start drilling offshore Lebanon in September

              Total-led consortium to start drilling offshore Lebanon in September

              Trending Tags

              • Hospitality
                Qatar: Over 700 hotel keys added in Q1

                Qatar: Over 700 hotel keys added in Q1

                Jordan’s tourism income surges 88% as visitors flock to the country

                Jordan’s tourism income surges 88% as visitors flock to the country

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Leisure sector in Qatar stronger after World Cup 2022

                Leisure sector in Qatar stronger after World Cup 2022

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

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              Why change matters for GCC economies?

              OBG

              April 4, 2017
              in Economy
              0
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              For many years those of us who study the countries that form the Gulf Cooperation Council – Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain – have grown accustomed to using and hearing one term more than any other: diversification. But what has also been just as common has been the frustration at the pace of the process.

              The simple fact is that due their bountiful natural resources the GCC countries have many of the symptoms of what is known as Dutch Disease, the theory that economies which have a dominant export experience significant development in that area, but underdevelopment in others.

              The IMF, World Bank and OBG have long been advocates of economic reform that will enable an environment where other economic sectors can grow and contribute to state revenues. This is, of course, easier said than done. Every state in the region has a diversification strategy, and they have been implemented with varying degrees of success. All of these require the private sector to play a greater role, too.

              However, when hydrocarbons prices were high enough for budgets to show surpluses, it was difficult to generate much urgency to drive through the sometimes painful reforms necessary. Furthermore, the social contract that exists between state and citizen in the Gulf makes change even harder. In many cases the states’ largesse in every sense has meant that the private sector remains relatively underdeveloped.

              But now that oil prices have entered what some have referred to as the “new normal”, i.e. a much lower band, diversification and economic reform have taken on a whole new urgency.

              How is this change manifesting itself?

              1 – Subsidy Reductions
              Generous government subsidies have long been hallmarks of the Gulf. However, they have never been sustainable in the long term. They also have the capacity to create dependency, too, which is always a concern. Over the past 18 months each and every state has set about reducing the scale of subsidies, both to households in the form of utilities and food, and also those to industry.

              This has inevitably had an impact on households and industry alike, squeezing expendable income and margins in equal measure. However, at the time changes were made, for example in the UAE with fuel prices, which are now set monthly, many of the fears expressed, for example, that it would lead to significant inflationary pressure, have not materialized.

              2 – VAT
              The decision to implement a value-added tax was taken at the regional level by the GCC. It will see the imposition of a 5% levy on most goods, consumables and services. It is the first time such as tax has been introduced in the GCC and is a significant development.

              Certain items will likely be exempt from the tax – basic food and health supplies, for example. Businesses that sell VAT-liable products or services add on the percentage and then, as a VAT-registered businesses, file a VAT return to the relevant authority.

              But what does this mean in practice? Well, as well as being a boon for the financial services and IT systems companies who will be well placed to advise on the implementation of VAT systems and reporting structures, the real beneficiary in the long term will be the governments’ coffers. Raising revenue via VAT is in many senses is a reflection of a maturing economy. It can be varied as a fiscal tool, too, so that in good times it can be raised and in periods of financial stress, lowered as a stimulus.

              A more subtle benefit that VAT brings, though, is another layer of transparency, as VAT registration and filing will enable greater scrutiny and analysis of how the markets work. In a region that has seen major steps forward in this regard, this is another welcome development.

              3 – Public vs Private
              One of the most frustrated elements of the GCC’s economic reform strategies has been the development of autonomous private sector growth. Now, as the governments of the region look to accelerate reform, the private sector is being looked to with renewed enthusiasm. The trouble is that in some places they have felt the squeeze to such a degree from austerity measures and the dramatic reduction in government spending, that sentiment is at low ebb and they are struggling to find growth opportunities.

              This is, of course, perhaps an inevitable side effect of the necessary changes being made – the subsidy reductions, for example. Either way it looks as though it will be some time before the impact has worked itself through. A businessman I spoke with in Saudi Arabia recently spoke plainly that if the government cuts too hard as the dominant engine of growth, the private sector, in many senses a fledgling in comparison, could find itself without the momentum to succeed.

              On the other hand, another businessman said that while current conditions were definitely difficult, they also form an environment where entrepreneurship will flare sooner or later, quite simply out of necessity. There’s no doubt truth in both.

              There is really no easy, straightforward path to the economic reforms the GCC countries require. However, the signs are positive in that these changes, which have been talked about for years, are finally happening. To be sure, they’re not comfortable, but we must take notice that the governments over the past 18 months have taken measures that even in the preceding year were unthinkable.

              Change is always difficult but economic reform taking place in the Gulf shows it is more likely to happen when necessary than suggested.
              OBG
              4 April

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