As the global economy lurches from one crisis to the next, we look at the prospects for the regional economies in troubling global conditions which could slash domestic growth.

Another quarter, another headache. Gulf governments have suffered a tumultuous first two quarters of the year and were hoping for some semblance of sanity in the third quarter. At the very least, regional governments were hoping that tragic developments within the Middle East had remained isolated - Syria, Yemen and Libya - leaving other countries in relative safety and peace.
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Oil-dependent Kuwait may find a new revenue stream to support its rising spending needs if VAT is implemented by the authorities in 2013, according to the IMF.
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The Gulf states will need to create 3.3 million jobs over the next ten years, meanwhile the MENA region will need to create 30.7 million jobs by 2020, according to Al Masah Capital.

Unemployment in the Middle East stands at 10.3% and North Africa at 9.8%. While that may seem comparable or even favourable to some OECD countries - (U.S. 9.1% unemployment, Spain 21.3%), joblessness in MENA is a structural problem. READ MORE HERE

The potential inclusion of Morocco and Jordan in the GCC fold should be taken for what it is – a political move by the Gulf states to widen their sphere of influence in the region.

There is, of course, nothing wrong with it. The United States has done it with NAFTA, the EU has been handing out membership forms to many countries within their vicinity; there is of course the ASEAN, and even BRIC nations have recruited South Africa in their club – they are now called BRICS. Read The Full Article On Economonitor

Qatar’s investment over the next five years will be a staggering $225 billion, but the country is still worried about low energy prices during the period.

As a roadmap for its social and economic aspirations, you can’t really fault Qatar’s National Development Strategy 2011-2016 report. It is inspirational, comprehensive and packed with good intentions, as all such reports should.

For an economy that is growing at a rate that would put China to shame, it’s national development strategy (NDS) is also lacking in a fair bit of pride and glory - if anything, there are parts of the report that are a bit hesitant and self-doubting. The missing vainglory is a contrast from some of the other national development strategies that one has seen over the years - and that is not a bad thing. It’s almost endearing. Read More

The emirate’s economy may benefit as international visitors choose hotels in Dubai over other troubled regional tourist destinations, notes Citibank. But Egypt and Bahrain will suffer from poor growth.

The UAE may benefit from the unrest in other parts of the Middle East, according to Citibank, with Dubai set to grow 5% this year and at an even faster clip at 6% in 2012.

“Due to its relative political stability, we believe there is a possibility of a diversion of commercial, investor and tourist activity from less stable parts of the region. The external sector thus is the main driver of the recovery, with gains being posted both in export growth, and a reduction in imports,” notes Citibank. READ MORE

The GCC has around $40bn of debt coming due each year over the next five years, says Standard Chartered Bank (SCB). Plus a chart that neatly shows SCB’s forecasts returns on each country’s bonds. Read More Here

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Read why EFG-Hermes is worried about Omani and Bahraini growth. And the bank’s insightful regional heat map that neatly highlights problem areas. Read the full story here

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As events in Egypt change faster than you can update them on Twitter or Facebook, regional authorities are looking at the short-term and long-term impact of the crisis on their own economies. Read More