S&P: Economy to Shrink 5% in Bahrain, 7.5% in Abu Dhabi

FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018. REUTERS/Brendan McDermid/File Photo
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S&P: Economy to Shrink 5% in Bahrain, 7.5% in Abu Dhabi

FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018. REUTERS/Brendan McDermid/File Photo

Abu Dhabi’s economy will contract 7.5 percent this year, S&P Global Ratings said, while Bahrain’s economy will shrink 5 percent this year because of low oil prices.

Bahrain’s fiscal deficit is seen widening to 12 percent of GDP this year from 4.6 percent in 2019, largely due to lower oil prices.

It also expected the fiscal deficit in the emirate to rise around 12 percent this year from 0.3 percent in 2019. The smallest emirates in the UAE are expected to receive exceptional financial support from the state.

The sharp drop in oil prices impacted the economy in the Gulf, especially in Bahrain, which relies heavily on oil revenues.

Bahrain is taking measures to be less dependent on oil and encourage local and foreign investment in real-estate and tourism.

Oil and natural gas remain the sole key natural resources in Bahrain, providing around 60 percent of the state’s revenues. Bahrain benefitted from the flourishing oil sector since 2001 to achieve economic growth.

It has attracted investments from the Gulf countries to contribute to development of the infrastructure and projects that would improve livelihoods, housing, health, education, roads, water, and electricity.

The data released by the Statistics Centre of Abu Dhabi showed a decline in the oil sector contribution to the GDP by 1 percent during last year, reaching 39.8 percent compared to 40.8 percent in 2018. This comes along with economic diversification plans endorsed by the emirate.



Riyadh Hosts Saudi-Egyptian Industrial Forum

Officials are seen at the forum on Monday. (SPA)
Officials are seen at the forum on Monday. (SPA)
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Riyadh Hosts Saudi-Egyptian Industrial Forum

Officials are seen at the forum on Monday. (SPA)
Officials are seen at the forum on Monday. (SPA)

The Saudi-Egyptian Industrial Forum kicked off in Riyadh on Monday under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef. The forum aims to bolster strategic industrial cooperation and integration between the two countries.

Organized by the Federation of Saudi Chambers of Commerce in collaboration with the Federation of Egyptian Industries, the forum witnessed the participation of Deputy Minister for Industrial Affairs Eng. Khalil bin Salamah, Saudi Export Development Authority CEO Abdulrahman Althukair, and 300 prominent Saudi and Egyptian industry leaders and investors.

Bin Salamah underscored the significance of strengthening economic cooperation and industrial integration between Saudi Arabia and Egypt. He advocated for enhanced industrial partnerships within five priority sectors identified in the Kingdom's National Industrial Strategy: pharmaceuticals, automotive, building materials, textiles, and food industries.

He highlighted the evolving strategic integration between the two countries across initiatives like "Saudi Made,Future Factories," and "Made in Egypt," as well as in the broader goods and services sector. Bin Salamah urged Egyptian industrialists to capitalize on the industrial investment opportunities available in the Kingdom, citing its ambitious plans to establish 24,000 new factories over the next decade.

Federation of Saudi Chambers of Commerce Chairman Hassan Alhwaizy hailed the forum as a crucial milestone in Saudi-Egyptian industrial collaboration, emphasizing the strategic partnership underpinning their economic relations, particularly in the industrial sector.

Federation of Egyptian Industries Chairman Mohamed El-Sewedy stated that current global challenges are accelerating the need for industrial integration between the two countries, strengthening their partnership to tap into the African market's potential.

Saudi-Egyptian Business Council Chairman Bandar Al-Ameri highlighted the substantial growth in trade exchange between Saudi Arabia and Egypt in recent years, fueled by developing economic partnerships between their respective business communities. He emphasized that signing the agreement to protect and encourage mutual investments represents a strategic achievement serving their shared interests.