Global Consultancy Firm, Deloitte’s latest survey of 134 Finance leaders and CFO’s in the Gulf concluded that almost 70 percent of the regions Financial leaders were more positive about their organisations financial prospects than they were a year ago. Indeed, 76% predicted a rapid increase in demand for their respective companies products and services over the next 12 months.
According to Emirates Business, Deloittes Middle East CFO Program leader, James Babb felt that the relative to other parts of the world, the region had a “more stable outlook”, due to the region’s governments being “better resourced” to take “responsive action” to mitigiate the effects of the global meltdown. Mr Babbs opinion was shared by most of the respondents of the survey, with a massive 90% confident that the GCC Governments could provide additional economic stimulus, and 62% even suggesting there was no need.
Mr Babb concluded that the Middle East’s could expect a “buoyant outlook”, as long as the price of Oil remained above $50 a barrel, enabling the region to “continue to outperform the rest of the world”
It seems that the economic revival is having a positive and profound effect on the jobs market, with 62% of UAE companies saying they were hiring, as compared to 51%, according to a recent survey by Antal
International, specialists in the recruitment of Management professionals. The report, which surveyed over 9,500 organisations in 55 countries, put the UAE as one of the top countries in the world, currently hiring professional and managerial staff. Within the region itself, the UAE was second only to Saudi Arabia as one of the most buoyant jobs markets.
A recent report by the World Bank concurs the predicted bounceback due to oil revenues, enabling further fiscal stimuli. The World Bank, which now predicts growth at an impressive 4.4% in 2010 compared to
almost zero in 2009, describes the outlook as “remarkable” even predicting a 4.9% rise in 2011. They suggest the expected rise in oil revenue will allow GCC Governments to “continue implementing supportive
Another recent report by the Institute of International Finance, re-iterated the GCC Governments abilities to sustain huge spending over the next few year – Foreign Assets have tripled since 2002 to an
estimated $1.47 trillion (Dh5.3trn) by 2008. Oil and Gas revenues are also expected to rise from around $323 Billion in 2009 to almost $419 Billion in 2010 and $457 Billion in 2011. The report also added
that despite a rise in GCC Government spending, the budget fiscal surplus would also rise from 3% to 10% between 2009 and 2010-2011.