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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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    • Business & Economy
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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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      • CES 2017
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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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        • 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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        • Agrofood
          • All
          • Agriculture
          • Environment
          • 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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              World Bank Puts Iran's Average Growth at 4.5% in 2016–18

              Financial Tribune

              January 11, 2017
              in Economy
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              World Bank Group in its latest analysis of Iran’s economy has forecast Iran’s economy to grow at an annual average rate of 4.5% in 2016–18.
               
              The bank, in Iran Economic Monitor for fall, has revised up the real GDP growth for 2016 by 0.1%age points at 4.3%, reflecting a larger increase in oil and gas production. In particular, the oil and gas sector is projected to grow by 14.5% in 2016 up from 12.9% in the previous IEM.
               
              Over the medium term (2017–18), investment is likely to play a much larger role in generating growth on the assumption that new investment deals currently being negotiated will materialize in 2017-18, and financial linkages with the rest of the world will be restored. In particular, the 4.7% average growth projected for 2017-18 is expected to be driven by a 7.9% average increase in total investment.
               
              With renewed confidence in the economy and a lower inflationary environment, consumption is expected to grow at an average of 3.5% over 2016-18.
               
              Inflation is expected to ease into single digits in 2016 for the first time since 1990. Consumer price inflation is forecast to register 8.6% in 2016, down from 34.7% in 2013, as a result of curbing inflationary expectations, fiscal discipline, lower commodity prices and easing import costs in the wake of the partial lifting of the sanctions.
               
              This might create room for the central bank to ease its monetary policy by lowering interest rates with the objective of reducing borrowing cost and boosting growth. However, as reflected in the recently rising monthly rates, there are increasing pressures on the disinflationary trend and continued tight fiscal and monetary policies will be important to keep inflation in check.
               
              The fiscal position is expected to improve for the first time since 2012. After an estimated deficit of 1.6% of GDP in 2015, the fiscal balance is projected to improve by 1.2% of GDP in 2016 as a result of an expected surge in the volume of oil exports, which will outweigh the projected drop in prices.
               
              In parallel, non-oil revenues are likely to increase due to recovery in economic activity, continued expansion of coverage of value added tax and an estimated $3 billion windfall in frozen assets.
               
               
               
              Fiscal, Account Balance Improvement
               
              On the expenditure side, the projected rise in capital spending is expected to be counterbalanced by a drop in current spending as a result of the parliament’s decision in April 2016 to remove cash subsidies (introduced in 2010) for high income households.
               
              Notwithstanding the expected pickup in capital spending in 2017 and 2018, the fiscal balance is projected to record surpluses of 0.5 and 1.1% of GDP in 2017 and 2018, respectively. This projected improvement over the medium term assumes a higher efficiency in terms of tax collection combined with a continued increase in oil inflows, as well as implementation of fiscal measures that may be needed to manage the impact of the ongoing securitization of government arrears and recapitalization of public banks.
               
              According to the World Bank, the country’s current account balance is projected to follow a monotonically increasing path over the next three years. The current account balance in 2016–18 is revised upwards, in line with the recent data published by the CBI showing that oil exports actually rose in 2015, despite falling oil prices. In particular, after decreasing from 6.3% of GDP in 2013 to an estimated 2.3% of GDP in 2015, the current account surplus is expected to reach 2.6, 3.4 and 4.1% in 2016, 2017 and 2018, respectively.
               
              This improvement reflects a projected increase in energy exports, which is expected to fully offset the rise in imports stemming from lower trade costs and increased domestic consumption.
               
              Moreover, tourism inflows are expected to provide an additional boost.
               
              Iran’s growth prospects may be at risk, if investment inflows do not materialize and oil prices do not pick up over the medium term.
               
               
               
              Need for Reforms
               
              Achieving sustained growth rates of 4.5–5% a year or closer to the government’s target of 8% will critically depend on accelerating pace of structural reforms undertaken by the current administration, reintegration with the global economy in international trade and finance and reviving foreign investors’ activity in the country.
               
              Iran’s dependence on the energy sector leaves it highly exposed to swings in gas and oil prices. In particular, any drop in international oil prices, due to increased supply or a lower global growth, will exert downward pressure on the fiscal and current account balances assuming that Iran’s oil receipts continue to be pro-cyclical—as the budget receives a fixed percentage of oil proceeds.
               
              The bank also cautions that simulations of a scenario where investment activity falters as a result of failure in restoring confidence suggests a significant reduction in growth in 2017–18. This downside scenario is illustrative of the impact of a weak investment outturn that may either result from the delays in the reintegration of the Iranian banking sector with the global system or lack of sufficient progress in key structural reforms, which would both hurt investors’ confidence and deter long-term investment activity.
               
               While in the baseline scenario, investments are projected to grow by an average of over 7%, this rate will marginally be above 4% in a scenario where investor confidence cannot be restored and macroeconomic policies falter. Potential investment activity will be greatly supported by reforms that will improve the investment climate, including reforms in factor and product markets, and reduce the state’s role in the economy to create room for the private sector.
               
              Financial Tribune
              11 January
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