Market Sentiments About Gulf Economics Pessimistic
CEO of Middle East and Africa of Deutsche Bank commented on April 6th 2019 that currently the sentiments of the market are not really positive for Gulf States. He has raised concerns over the fact that several investors have hold back their big amount investments for the region in past few years. Jamal Al Kishi mentioned that the private sector of the area do not feel very optimistic about the present condition. He gave his economic approach towards the World Economic Forum about North Africa and Middle East. He said that economy has currently hit a sensitive spot after the sudden collapse of rough prices.
One of the main reasons behind this pessimistic attitude can be directed at the declining numbers that has been predicted by market analysts. Capital Economics, consultancy firm based in London said that Saudi Arabia had experienced strong growth in economy at the closing of 2018. Due to the cuts in oil production, the starting of 2019 was not very promising and it begun with a slowdown in economy. Bahrain had received a package of $10 million from its neighbors towards the end of last year. Moody has decided to leave Oman out of the last rating of investment-grading.
In fact, growth in sectors other than non-oil had not been that promising as well as a result of which, country had to face deflation during January 2019. Prices of property in Dubai had been 25% less since 2014 and the growth rate has fallen to 1.9% during 2018 from 3.1% during 2017. 1.9% has been the lowest rate in last 8 years. In the storage and transport sector, the growth has been good in 2018. In 2017, it was 8.4%. 2018 witnessed a growth by 2.1%. However, the growth rate has been the slowest since 2013.