Description

Oil-exporting countries such as the UAE, Saudi Arabia, and Algeria are likely to grow at a steady rate in Q4 2013 and H1 2014. Due to moderate global demand for oil, oil companies are reported to be scaling down oil production and holding back oil and gas sector investments in major oil producing economies in the region. This is likely to continue in Q4 2013. However, production may pick up in early 2014, as demand from the global economy rebounds. Sizable growth is expected in the non-oil sector of Saudi Arabia and the UAE in Q4 2013 and H1 2014. Egypt has been experiencing a complex political transition and growth in the coming quarters will remain subdued due to low domestic confidence, social unrest, and persistently high inflation.