Dubai: Saudi Arabian stocks fell sharply on Saturday, tracking a slump in world markets, as investors worried that an oil price plunge and possible global recession would hit the growth of firms in the world’s top oil exporter. The benchmark of the largest Arab bourse closed 8.7 per cent lower at 5,624 points, a day after bourses around the world plummeted as investors, fearing a long and deep worldwide recession, dumped risky assets. The index has fallen more than 44 per cent so far this year and is the worst-performing measure in the region after Dubai. « The Saudi market is positively correlated with the global markets, especially the big ones, » said John Sfakianakis, chief economist at SABB bank, HSBC’s Saudi affiliate. « As we’ve seen these markets tumble, the Saudi market has tumbled by a higher degree. There is negative sentiment. » Saudi investors were also reacting to the near $4 drop in oil prices on Friday. Six other stock markets in the oil-exporting region were closed on Saturday. Reuters
The sixth Gulf summit for leaders of the Gulf Cooperation Council (GCC) states will be held in Jeddah next Sunday, and will be chaired by Kuwait as chairman of the current session of the GCC. Holding the midyear unofficial GCC summit aims to exchange viewpoints and explore latest regional and international developments, to boost coordination and consultation, as well as to unite stands. The summit will be preceded by a meeting of the GCC Ministerial Council, which will include foreign ministers of GCC states, to prepare the agenda to be discussed during the one-day summit. Gulf diplomatic sources told Kuwait News Agency (KUNA) in Riyadh, Tuesday, that leaders will explore during the summit major issues that include fighting terrorism, the situation in Iraq, the deteriorating situation in the occupied Palestinian territories and the ongoing Israeli aggression against the Palestinian people, in addition to other Gulf economic and developmental issues. The bombing incidents that occurred in Riyadh and Yanbu will also be discussed, as security of the region is a joint responsibility. The upcoming consultative summit is an opportunity to unite Gulf stands before holding the 16th Arab Summit, scheduled to be held in Tunisia on May 22-23, in particular the importance of reforming the Arab League and finding new mechanisms to develop joint Arab work. kuwaitbusiness.net
Qatar is one of the world’s fastest growing economies, and the wealthiest country in the world measured by GDP per capita. The Qatar Financial Centre (QFC) lies at the heart of this small but dynamic country’s ambitious investment and development strategy.
The government sector in Sharjah has grown its share of the emirate’s gross domestic product (GDP) from Dh60.4 billion in 2006 to Dh68.4bn in 2007, making 13.2 per cent growth. The government sector is currently accounting for 17.87 per cent of the overall GDP of the emirate. As the government services sector has a major share in GDP, it is capable of acting as a corrective force for the economic growth and will show a proven quality performance in government services, gaining the necessary power to guide the economic sector to the desired direction, said Ali bin Salem Al Mahmoud, Sharjah Economic Development Department General Manager. The GDP growth rate of the emirate from 2004 to 2007 was 41.7 per cent according to local statistical data. It grew to Dh68.4bn in 2007 from Dh30.4bn in 2004. The overall GDP of the emirate amounted to Dh68.4bn in 2007, a 13.2 per cent growth as compared to figures of 2006, according to federal statistical data. The share of commodities products sector (agriculture, manufacturing industry, construction, electricity, gas and water) to GDP has grown from Dh13.6bn in 2004 to Dh24.7bn, Dh27.7bn and Dh29.6bn in 2005, 2006 and 2007, respectively. The average annual growth rate of commodities products sector during the period from 2004 to 2007 was calculated at 39.3 per cent. The manufacturing industry sector has the lion’s share to commodities products sector’s GDP, posting Dh12.2bn in 2007, a 41.2 per cent from the GDP of the sector at Dh29.6bn. The manufacturing industry has the highest added value in the Gross Capital Formation, accounting for 19.99 per cent in 2007. The emirate has solved the problem of declining share of manufacturing industry to the GCF, with a growth of 79.3 per cent from Dh2015m to Dh3613m in 2007. This means the manufacturing industry sector has the highest share to gross capital formation in value and rate of contribution, a growth that proves an appropriate direction of the emirate’s policies in supporting the sector from one side and interest shown by investors and private sector from the other side. business24-7.ae
Total GCC imports through UAE ports and borders soared to Dh36 billion from 2003 to 2007, according to Mohammed Khalifa bin Fahad Al Muhairi, Director General of the Federal Customs Authority (FCA). He said the Clearance Committee endorsed the customs duties charged against imports until 2007. It then transferred them fully to the members « in line with the commitment of the FCA to make the unified customs experience a success », he added. The FCA completed transfer of Dh495.8 million to GCC members, being customs duties charged against goods, which crossed via UAE borders and ports. By Wam
