The bank will hold another session for its clients in Abu Dhabi on April 28th. The bank also held similar briefings for clients in Bahrain and Qatar.
The sessions are held exclusively for Standard Chartered’s clients, with a cohesive programme that provides in-depth insight and analysis on the global, regional and local economic outlook as well as the financial picture for the year ahead.
Marios Maratheftis, Head of Macro Research, Standard Chartered Bank and Samiran Chakraborty, Head of Research, India, Standard Chartered Bank discussed the implications of the transformation that the world is going through, to the business environment in the MENAP region.
“This transformation is partially driven by the deleveraging 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,” Marios Maratheftis, said.
“The MENA region is changing rapidly. Countries which 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 still have to attract inward investments by reforming existing fiscal, subsidy and legal systems,” Marios said.
“In light of economic, political and fiscal uncertainties, it is vital for businesses today to make informed decisions based on information from trusted advisors that 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 and outlook on the global and regional economy,” Sami Mahfouz, Head of Global Markets and co head of Wholesale Banking Standard Chartered UAE, said.
Standard Chartered is one of the leading international banks operating in the Middle East region for over 90 years. The Bank employs more than 3500 employees and out of its regional headquarters in the Dubai International Financial Centre, Standard Chartered manages regional and international conventional and Islamic operations.
Standard Chartered’s research team was ranked the number one firm in the world for economic forecasting by Bloomberg Markets in 2011.
“MENA growth dynamics are diverging. Oil exporters are benefiting from strong oil prices, which will underpin spending plans for 2013. Non-oil exporters face a more challenging fiscal reality this year. Inflation is selectively picking up. Inter-regional fiscal co-operation is growing,” he said.
“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; this is positive in the medium term, though it might drive a near-term housing crunch. Energy efficiency is a policy priority this year,” he said.
“Abu Dhabi is investing in its own economy once again. Dubai’s non-oil economy is outperforming, underpinned by regional trade flows and its safe-haven status. Credit growth should begin to improve following more than four years of very tight conditions,” Marios, said.
“In Qatar, projects related to FIFA 2022 are beginning. Inflation may be a concern, especially as spending outlays materialise this year. The LNG sector is back in focus, with policy makers addressing long-term challenges,” he said.
“In Egypt, progress on necessary subsidy reform is slow amid an uncertain political environment and prolonged discussions with the IMF. A balance of payments deficit, falling reserves and a consequently weaker currency heighten the need to secure IMF funding,” he said.