The countries of the MENA region have been, for the most part, economically isolated for decades. With the exception of Arab labour remittances, which had a precipitous decline in the 1990s, there has been little economic exchange between resource-rich and resource-poor countries.
Over the past decade, however, MENA's economic landscape has been changing, giving rise to increasing hope about the region's economic integration and development. These signs have been manifested in five main factors: investments; people; trade; infrastructure; and communications and media.
Arab investors have put more of their money than ever before into their countries. Indeed, Arab foreign direct investment in MENA has grown almost sixfold between 2002 and 2008. This has been a reaction to investment opportunities across the region, aided by a combination of increased demand through rapidly growing populations, unprecedented reforms, a desire to reallocate Arab money closer to home and to hedge against the uncertain environments in Europe and North America.
Despite the shift in immigration trends toward Asian labour, the number of Arab migrant workers is on the rise. The GCC's strong economic growth over the past decade, accompanied by a surge in demand for higher labour skills, has sparked rising numbers of Arab workers, especially at the semi-skilled and professional levels. In Saudi Arabia and the UAE, for example, data suggest that the number of Arab migrant workers - mainly from Egypt but also from Jordan, Syria and Lebanon - has risen by about 40 per cent over the past 10 years. This increase in intra-MENA labour migration has had an important role in distributing oil wealth to the Levant and North Africa.
Over the past several decades different circumstances within MENA created obstacles to trade. The oil-rich countries overlooked the development of trade in non-oil industries, while in other countries the lack of a wide industrial base limited the amount of tradable goods they could produce. As a result, MENA has lagged, averaging 19 per cent regional trade compared with 71 per cent in Europe and 57 per cent in Asia in 2007.
Nevertheless, signs of progress are appearing. The introduction of the GCC customs union agreement in 2003 and the Great Arab Free Trade Area accord in 2005 have helped reduce tariffs and is expected to promote further trade in the coming years. Indeed, the value of intraregional exports (excluding oil) increased by 240 per cent from 2001 to 2007. Furthermore, trade in services such as tourism, telecommunications and health care have been more active in recent years. This has been a direct result not only of structural reforms in the region, but also the strong economic expansion and tremendous liquidity that have financed key projects and infrastructure in these sectors.
Regional projects in producing and sharing electricity, transporting oil and gas as well as developing transportation links all play important roles in economic integration. In the past many such projects were mainly initiated to ensure self-sufficiency. Today, they are initiated to ensure regional efficiency. Cross-border infrastructure grids, such as power grids, gas pipelines, transport links, and telecoms networks have become more common over the past decade. The MENA leaders have found new ways of dealing with higher demand by developing enough energy capacity to facilitate economic and industrial growth and meet the needs of a growing population.
The GCC's new US$1.4 billion (Dh5.14bn) electricity grid, the Interconnection Project, is an excellent example. Similar projects are under way in the Levant countries. Regional projects in infrastructure for the oil and gas sector includes the Mashreq Gas pipeline that will link markets in Egypt, Jordan, Lebanon and Syria as well as the GCC gas pipelines such as the Dolphin Gas Pipeline project.
The region's transportation systems are also more integrated now than just five years ago, particularly with respect to air transport, as a result of the steps taken to implement the "open skies" agreement by such countries as Bahrain, Jordan, Lebanon, Morocco, Oman, Qatar and the UAE.
In the less-developed road and rail transportation sector, governments are making efforts to improve and upgrade links between the MENA countries to facilitate trade. The 2001 UN Agreement on International Roads in the Arab Mashreq and the 2005 Agreement on International Railways have been implemented in several countries and promise an integrated regional transportation system. Combined with updated infrastructure for better communication and more standardised procedures, MENA's regional integration, through infrastructure, looks more promising than ever before.
The proliferation of broadcast and broadband services has broken down national barriers and helped people in the region feel part of the larger pan-Arab community. Arabsat, the region's largest satellite services provider, offers the full spectrum of broadcast, telecoms and broadband services to more than 164 million people in 21 countries.
The number of pan-Arab and free-to-air GCC TV channels has grown about 45 per cent every year from 2003 to 2006. In broadcasting, the Middle East Broadcasting Corporation (MBC) is a leading international network of Arab origin: another strong indicator of the extent of regional integration on the media front. The number of Arab broadcasters increased more than sixfold between 2002 and 2008. This increase has been accompanied by a rise in related economic activity. We estimate that net advertising revenues at the end of last year reached about $425 million, a 17 per cent increase from 2004. The expansion reflects not only Arab audience's viewership of TV programmes of common interest, but also the rise in economic ties between Arab countries. In particular, companies that in the past pursued only local customers are now actively pursing Arab consumers.
Although there are still several areas - such as removing barriers to the movement of goods and services, improving the business environment, governance and accountability - where the MENA region's governments need to continue reforms to encourage further investments in their economies, there is no doubt that a significant shift has taken place that increases the momentum of change in these economies, especially over the past several years. Provided the reform momentum is sustained, the MENA economies will continue to experience closer economic integration and a better outlook for sustainable growth across the region.
Hatem Samman is director and lead economist of Booz & Company's Ideation Center
business@thenational.ae
WHAT%20ARE%20THE%20PRODUCTS%20WITHIN%20THE%20THREE%20MAJOR%20CATEGORIES%3F
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Race card
6.30pm: Handicap (TB) $68,000 (Dirt) 1,200m
7.05pm: Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m
7.40pm: UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m
8.15pm: Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m
9.50pm: Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m
9.25pm: Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m
Opening Rugby Championship fixtures: Games can be watched on OSN Sports
Saturday: Australia v New Zealand, Sydney, 1pm (UAE)
Sunday: South Africa v Argentina, Port Elizabeth, 11pm (UAE)
Takreem Awards winners 2021
Corporate Leadership: Carl Bistany (Lebanon)
Cultural Excellence: Hoor Al Qasimi (UAE)
Environmental Development and Sustainability: Bkerzay (Lebanon)
Environmental Development and Sustainability: Raya Ani (Iraq)
Humanitarian and Civic Services: Women’s Programs Association (Lebanon)
Humanitarian and Civic Services: Osamah Al Thini (Libya)
Excellence in Education: World Innovation Summit for Education (WISE) (Qatar)
Outstanding Arab Woman: Balghis Badri (Sudan)
Scientific and Technological Achievement: Mohamed Slim Alouini (KSA)
Young Entrepreneur: Omar Itani (Lebanon)
Lifetime Achievement: Suad Al Amiry (Palestine)
CREW
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BUNDESLIGA FIXTURES
Friday (UAE kick-off times)
Borussia Dortmund v Paderborn (11.30pm)
Saturday
Bayer Leverkusen v SC Freiburg (6.30pm)
Werder Bremen v Schalke (6.30pm)
Union Berlin v Borussia Monchengladbach (6.30pm)
Eintracht Frankfurt v Wolfsburg (6.30pm)
Fortuna Dusseldof v Bayern Munich (6.30pm)
RB Leipzig v Cologne (9.30pm)
Sunday
Augsburg v Hertha Berlin (6.30pm)
Hoffenheim v Mainz (9pm)
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
Results
5.30pm: Maiden Dh165,000 (Turf) 1,600m; Winner: Al Battar, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer).
6.05pm: Maiden Dh165,000 (Dirt) 1,200m; Winner: Good Fighter, Richard Mullen, Satish Seemar.
6.40pm: Handicap Dh185,000 (T) 1,200m; Winner: Way Of Wisdom, Tadhg O’Shea, Satish Seemar.
7.15pm: Handicap Dh170,000 (D) 2,200m; Winner: Immortalised, Tadhg O’Shea, Satish Seemar.
7.50pm: Handicap Dh185,000 (T) 2,000m; Winner: Franz Kafka, James Doyle, Simon Crisford.
8.25pm: Handicap Dh185,000 (D) 1,200m; Winner: Mayadeen, Connor Beasley, Doug Watson.
9pm: Handicap Dh185,000 (T) 1,600m; Winner: Chiefdom, Mickael Barzalona, Salem bin Ghadayer
The 12 breakaway clubs
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
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WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
The specs
Engine: 2.2-litre, turbodiesel
Transmission: 6-speed auto
Power: 160hp
Torque: 385Nm
Price: Dh116,900
On sale: now
UAE currency: the story behind the money in your pockets
Essentials
The flights
Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes.
The stay
A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.
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The years Ramadan fell in May
The specs: 2018 Ford F-150
Price, base / as tested: Dh173,250 / Dh178,500
Engine: 5.0-litre V8
Power: 395hp @ 5,000rpm
Torque: 555Nm @ 2,750rpm
Transmission: 10-speed automatic
Fuel consumption, combined: 12.4L / 100km
UAE currency: the story behind the money in your pockets
SCORES
Yorkshire Vikings 144-1 in 12.5 overs
(Tom Kohler 72 not out, Harry Broook 42 not out)
bt Hobart Hurricanes 140-7 in 20 overs
(Caleb Jewell 38, Sean Willis 35, Karl Carver 2-29, Josh Shaw 2-39)
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%3Cp%3EThe%20UAE%20flag%20was%20first%20unveiled%20on%20December%202%2C%201971%2C%20the%20day%20the%20UAE%20was%20formed.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIt%20was%20designed%20by%20Abdullah%20Mohammed%20Al%20Maainah%2C%2019%2C%20an%20Emirati%20from%20Abu%20Dhabi.%C2%A0%3C%2Fp%3E%0A%3Cp%3EMr%20Al%20Maainah%20said%20in%20an%20interview%20with%20%3Cem%3EThe%20National%3C%2Fem%3E%20in%202011%20he%20chose%20the%20colours%20for%20local%20reasons.%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20black%20represents%20the%20oil%20riches%20that%20transformed%20the%20UAE%2C%20green%20stands%20for%20fertility%20and%20the%20red%20and%20white%20colours%20were%20drawn%20from%20those%20found%20in%20existing%20emirate%20flags.%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Kill%20Bill%20Volume%201
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Brave CF 27 fight card
Welterweight:
Abdoul Abdouraguimov (champion, FRA) v Jarrah Al Selawe (JOR)
Lightweight:
Anas Siraj Mounir (TUN) v Alex Martinez (CAN)
Welterweight:
Mzwandile Hlongwa (RSA) v Khamzat Chimaev (SWE)
Middleweight:
Tarek Suleiman (SYR) v Rustam Chsiev (RUS)
Mohammad Fakhreddine (LEB) v Christofer Silva (BRA)
Super lightweight:
Alex Nacfur (BRA) v Dwight Brooks (USA)
Bantamweight:
Jalal Al Daaja (JOR) v Tariq Ismail (CAN)
Chris Corton (PHI) v Zia Mashwani (PAK)
Featherweight:
Sulaiman (KUW) v Abdullatip (RUS)
Super lightweight:
Flavio Serafin (BRA) v Mohammad Al Katib (JOR)
Results
2pm: Serve U – Maiden (TB) Dh60,000 (Dirt) 1,400m; Winner: Violent Justice, Pat Dobbs (jockey), Doug Watson (trainer)
2.30pm: Al Shafar Investment – Conditions (TB) Dh100,000 (D) 1,400m; Winner: Desert Wisdom, Bernardo Pinheiro, Ahmed Al Shemaili
3pm: Commercial Bank of Dubai – Handicap (TB) Dh68,000 (D) 1,200m; Winner: Fawaareq, Sam Hitchcott, Doug Watson
3.30pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Xavier Ziani, Salem bin Ghadayer
4pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,600m; Winner: Rakeez, Patrick Cosgrave, Bhupat Seemar
4.30pm: Al Redha Insurance Brokers – Handicap (TB) Dh78,000 (D) 1,800m; Winner: Capla Crusader, Bernardo Pinheiro, Rashed Bouresly
Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
MATCH INFO
Barcelona v Real Madrid, 11pm UAE
Match is on BeIN Sports
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets