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First Abu Dhabi expects Gulf economies to grow 4.2 percent in 2023

World Investment Prospects 2023 report, that it expects the gross domestic product of the region Gulf About 4.2 percent this year, after reaching nearly 6.5 percent by the end of 2022.

In terms of financial markets, the report indicated that the investment trends witnessed in 2022 may continue during the first quarter of 2023, but the report expects the recovery of these markets to begin by the summer.

Financial analysts believe in First Abu Dhabi Bank that prices Benefit In the United States, it will stabilize later this year, it currently stands at 4.33 percent, and it may have been the main reason for avoiding risk by investors, with the possibility of recession during the first half of the year.

The report indicated that the increasing rise in interest rates led to a decrease in investors’ interest in traditional investments such as bond and stocks, compared to a cash deposit. But, when it happens slack Expected in the United States, it is an indication to invest in risky assets, especially with the expected significant drop in prices Stock Immediately start slack.

forecasts suggest First Abu Dhabi Bank The strong oil revenues will continue to support hydrocarbon exporters in the Gulf region, which in turn will support the activities of the non-oil sectors in the region, and return the surplus to government balance sheets.

However, work is needed to achieve economic diversification, which is one of the main ingredients for economic growth in countries Gulf. The supporting sectors include the inbound tourism sector, which continues to grow, as the number of tourists in some GCC countries has increased to levels that exceeded the pre-pandemic stage. corona.

The activities of the industrial sector continued to expand across the region, including Saudi Arabia And Egypt.

In addition to the main economic indicators, the World Investment Outlook report First Abu Dhabi Bank To a number of trends that draw indicators of future growth, including focusing on specific sectors, including: crude oil and carbon trade, and developments in the Middle East and North Africa region. And EgyptEmerging Markets Outlook, Developed Markets Outlook, andThe real estate sectorenvironmental, social and corporate governance.

There are also many promising opportunities, including the expected growth in investments related to sustainability. The report also touches on the important achievement achieved by the market green bonds With a value of $ 2 trillion, and sustainable bonds, which include social bonds linked to sustainability and transactional bonds, with a combined value of $ 3.5 trillion by the end of the third quarter of 2022, according to the Climate Bonds initiative report that was launched under the auspices of the First Abu Dhabi Bank during "cup27".

The Global Investment Prospects report indicates the growing impact of carbon trading on the financial landscape in the Middle East and North Africa region, in light of the launch of several important trading platforms in the GCC and MENA regions during 2022.

In the Emirates, a partnership was concluded between Abu Dhabi Global Market and AirCarbon Exchange (ACX) to launch the first regulated carbon credit exchange and its own clearinghouse.

The Abu Dhabi Global Market has also become the first jurisdiction in the world to regulate carbon credits in commodities for trading carbon credits and emissions offsets, and to issue trading licenses to operate spot commodity markets and commodity derivatives.

Other initiatives have been launched in the region, including the establishment of a regional voluntary carbon market company in Saudi Arabia. The Egyptian government also launched the first voluntary African carbon market during "cup27".

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The bank said, in its World Investment Prospects 2023 report, that it expects the gross domestic product of the region Gulf About 4.2 percent this year, after reaching nearly 6.5 percent by the end of 2022.

In terms of financial markets, the report indicated that the investment trends witnessed in 2022 may continue during the first quarter of 2023, but the report expects the recovery of these markets to begin by the summer.

Financial analysts believe in First Abu Dhabi Bank that prices Benefit In the United States, it will stabilize later this year, it currently stands at 4.33 percent, and it may have been the main reason for avoiding risk by investors, with the possibility of recession during the first half of the year.

The report indicated that the increasing rise in interest rates led to a decrease in investors’ interest in traditional investments such as bond and stocks, compared to a cash deposit. But, when it happens slack Expected in the United States, it is an indication to invest in risky assets, especially with the expected significant drop in prices Stock Immediately start slack.

forecasts suggest First Abu Dhabi Bank The strong oil revenues will continue to support hydrocarbon exporters in the Gulf region, which in turn will support the activities of the non-oil sectors in the region, and return the surplus to government balance sheets.

However, work is needed to achieve economic diversification, which is one of the main ingredients for economic growth in countries Gulf. The supporting sectors include the inbound tourism sector, which continues to grow, as the number of tourists in some GCC countries has increased to levels that exceeded the pre-pandemic stage. corona.

The activities of the industrial sector continued to expand across the region, including Saudi Arabia And Egypt.

In addition to the main economic indicators, the World Investment Outlook report First Abu Dhabi Bank To a number of trends that draw indicators of future growth, including focusing on specific sectors, including: crude oil and carbon trade, and developments in the Middle East and North Africa region. And EgyptEmerging Markets Outlook, Developed Markets Outlook, andThe real estate sectorenvironmental, social and corporate governance.

There are also many promising opportunities, including the expected growth in investments related to sustainability. The report also touches on the important achievement achieved by the market green bonds With a value of $2 trillion, and sustainable bonds, which include social bonds linked to sustainability and transactional bonds, with a combined value of $3.5 trillion by the end of the third quarter of 2022, according to the Climate Bonds initiative report that was launched under the auspices of First Abu Dhabi Bank during “COP 27”. .

The Global Investment Prospects report indicates the growing impact of carbon trading on the financial landscape in the Middle East and North Africa region, in light of the launch of several important trading platforms in the GCC and MENA regions during 2022.

In the Emirates, a partnership was concluded between Abu Dhabi Global Market and AirCarbon Exchange (ACX) to launch the first regulated carbon credit exchange and its own clearinghouse.

The Abu Dhabi Global Market has also become the first jurisdiction in the world to regulate carbon credits in commodities for trading carbon credits and emissions offsets, and to issue trading licenses to operate spot commodity markets and commodity derivatives.

Other initiatives have been launched in the region, including the establishment of a regional voluntary carbon market company in Saudi Arabia. The Egyptian government also launched the first voluntary African carbon market during COP27.

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