Jun 17, 2011
| Last Updated
- Higher oil revenues support massive government expansion, with richer countries supporting more cash-strapped neighbors.
- Property overhang dampens inflation in UAE and Qatar, while supply bottlenecks boost inflation in Kuwait and Saudi Arabia.
- Credit growth is becoming more of a support as social transfers boost deposits, but public-sector borrowing needs raise the risk of crowding out the private sector.
Macroeconomic Dynamics: Government Leads the Way
Ample government spending and stronger hydrocarbon output sets the GCC countries on a path to far outperform the rest of the MENA[...]
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