Standard Chartered yesterday hosted a macroeconomic briefing session, “Transforming, Rebalancing and Outperforming”, for its corporate clients in Doha.
The sessions are held exclusively for Standard Chartered’s clients, with a programme that provides in-depth analysis of the global, regional and local economic outlook as well as the financial picture for the year ahead.
The bank is holding similar briefings for clients in Bahrain and the UAE as well.
At the session, senior Standard Chartered Bank officials, Marios Maratheftis, global head of macroeconomic research; Samiran Chakraborty, head of research (India); and Sayem Ali, senior economist, discussed the implications of the transformation that the world was going through as well as the business environment in the MENAP region.
This transformation is partially driven by the de-leveraging of the West and the increasing reliance of Asia on its regional drivers of growth, making the old models of growth obsolete. As China and Asia are looking to rebalance their economies, there are risks, especially when it comes to politics and policy. But the world economy will continue to grow, and growth in 2013 will probably exceed 2012’s.
Maratheftis said: “The Mena region is changing rapidly. Countries that have financial and physical resources and are backed by governments willing and able to implement spending and investment plans are outperforming in 2013. The UAE and Saudi Arabia are clear leaders in this regard. Others in Mena (region) still have to attract inward investments by reforming existing fiscal, subsidy and legal systems.”
Motasem Duweik, head of origination and client coverage at Standard Chartered Qatar, said: “In light of economic, political and fiscal uncertainties, it is vital for businesses today to make informed decisions based on information from trusted advisers who have strong global and local understanding of business and economic dynamics. Today’s briefing session forms an ideal platform for our clients to closely interact with our economists and senior bank representatives to get specific insights into the latest developments affecting their business, and opportunities present in the regional and global markets.”
Economic highlights
* In Qatar, projects related to FIFA 2022 World Cup are beginning. Inflation may be a concern, The LNG sector is back in focus, with policymakers addressing long-term challenges.
* Mena growth dynamics are diverging. Oil exporters are benefiting. Non-oil exporters face a more challenging fiscal reality. Inflation is selectively picking up. Inter-regional fiscal co-operation is growing.
* Saudi Arabia’s strong spending trends show no signs of abating; planned spending is up again in 2013, underpinned by high oil prices and a record surplus for 2012. A mortgage law is likely this year.
* Abu Dhabi is investing in its own economy once again. Dubai’s non-oil economy is outperforming, Credit growth should begin to improve following more than four years of very tight conditions.
* In Egypt, progress on subsidy reform is slow. A balance of payments deficit, falling reserves and a consequently weaker currency heighten the need to secure IMF funding.