Commentary
Comment, analysis and opinion on the latest events and trends in the Middle East.
Comment
China prepared to take the gamble to secure future oil supplies in Iraq
The country is now the biggest foreign investor in Iraq’s oil sector
Manama needs to convince lenders on housing scheme
Bahrain must promise payments for its social housing scheme to raise private sector funding for it
Iranian politics must take back seat
Tehran’s plans for a $10bn rail upgrade is welcome news for commuters in the congested capital
Kuwait must step up momentum
The emirate must back approval for a new capital market authority by naming a credible team to head it
State support falls short
Abu Dhabi must realise implicit sovereign guarantees are worthless after Dubai distanced itself from debt woes at its state-owned firms
Borouge 2 to test rivals’ strength by offering low prices for its plastics and chemicals
Abu Dhabi Polymers Company (Borouge) is free of debts and is capable of offering low prices unlike its global competitors
Delays make sense for Emal's smelter plans
The business case for an Algerian smelter still makes sense even if the Sonatrach scandal delays it. Fuel allocation issues in Saudi Arabia are beyond the firm’s control
Power has to rise to meet demand in Saudi Arabia
Saudi Arabia will have to forge ahead with additional power projects if it is to remain in surplus
Regional water demand has to be cut
Much larger savings of water could be achieved if habits of consumption were changed
Manama’s banks face a tough year
Gulf Finance House’s action to pay off its debts is something that other banks also need to consider
Abu Dhabi has to cut its cloth economically
When oil was trading at above $100 a barrel, Abu Dhabi seemed to have money to burn. Today the emirate may have to pare back some of its plans
Dubai status as hub at risk
Struggling landlords could see more of their tenants vacate their offices. As much as 40 per cent of Dubai’s gross domestic product could be wiped out by the slump
Iraq to return as dominant player in the energy sector
If its oil production targets are met, Iraq will be challenging Saudi Arabia’s might within a decade
Energy firms gain room to breathe in Kuwait
The Shell deal shows that Kuwait’s Supreme Petroleum Council is proceeding with real purpose
Money will remain tight in the region as lenders remain cautious
The message from lenders is loud and clear. Well-structured projects, with long-term planning and strong sponsors, will secure finance
Cairo needs to convince lenders over public-private partnerships
Overseas lenders may well insist on government guarantees before they are willing to offer finance
Abu Dhabi will pay the price for putting projects on hold
Abu Dhabi has been slow to sign contracts for new schemes and many of them are in limbo. Many contractors will be wondering whether work they are competing for will fall by the wayside
Khalifa Port plans should be scaled back
It is unlikely that demand for port services will increase sufficiently to absorb the excess capacity
Gulf Finance House woes are symbol of sector
What the Gulf Finance House needs now is stability and to take a more conservative approach
Builders in Qatar have to tough it out
Contractors in Qatar say it is hard to negotiate with clients over changes to a project once work has started
Financial crisis has lessons for Maghreb construction sector
Many of the projects announced during the boom years looked far too ambitious from the start
South Koreans rule - for now
The South Koreans’ contracting crown is now theirs to lose. Chinese firms are increasingly appearing on bid lists in the region
Abu Dhabi sets tougher challenge for property construction firms
Firms in Abu Dhabi will have to work harder to win contracts than they did in Dubai
Emirates power policy must back green initiatives
As probably the world’s biggest per capita emitter of carbon dioxide, the UAE still has a long way to go
Medgaz success is the exception for Algeria's energy industry
Those running Algeria’s energy industry also need to accept some of the blame for the failures
Run the rule over Qatari regulation
The success of the central bank bailouts means other regulators face the danger of taking a very minor role in the new regulatory body
Scholarships will raise standards in the region
The real test will come when the students graduate and move across to jobs with Adnoc or Aramco
Koreans come of age in Abu Dhabi power sector
There can be no doubt that South Korean contractors have cemented their international position
Jubail deal is cause for hope in the region
There is more reason for optimism now than there has been at any other time over the past 12 months
Iranian ruling regime is under threat
In many ways, the government is no longer in control of events, a precarious position for any regime
Dubai recovery will be short term
Dubai’s real estate sector has had a terrible year. With prices falling 47 per cent, it is the world’s worst performing property market, and developers have, unsurprisingly, decided to rein in their plans and cancel projects.
Gas firms have to look outside Qatar
As the decade draws to a close, international oil companies (IOCs) and energy contractors working in Qatar have been warned not to expect the state to launch any major gas projects for at least the next five years.
People live in cities not towers
Tall towers have come to symbolise the excesses of the boom years. The focus must be on city centres instead
Kuwait’s big economic opportunity
If the current spirit of co-operation between the government and the parliament is sustained, it will be good news for all involved
New technologies challenge Masdar
For a project as unconventional as Masdar, different ways of judging success must be employed
Baghdad’s big oil opportunity
Gulf statessuch as Saudi Arabia, Kuwait and Abu Dhabi have been transformed by their oil revenues. Iraq should study its neighbours for what not to do as much as what to do
Gulf will lead air freight growth
As the region’s main transport hub, Dubai is the best gauge of the Middle East’s air cargo sector
Desertec solar power plans still impress
Desertec’s ambitions are still impressive, despite the technological compromises
Banks in the Gulf have got to loosen up
The provisions banks have had to make for bad debts has left them wary of making new loans. Policymakers must ensure credit growth does not get out of control
Clients can’t keep squeezing prices from oil contractors in Emirates
Adnoc will need to be prepared to pay more for its projects in the future if it is to meet its targets
Doha plays a waiting game with contract awards
Firms will have to get used to a very different landscape in the emirate. Doha knows that it has the chance to force contractor bids ever lower
Contractors are left guessing in the Gulf
Where there is no consistency of approach from clients, it is difficult for contractors to plan ahead
Three is a crowd in Abu Dhabi plastics market
The Adnoc/Ipic team is likely to resent another local company trying to take a slice of the shrinking pie
Sanaa needs its Gulf neighbours
The West’s interest in Yemen does not extend far beyond a fear that it could incubate Al-Qaeda terrorists. The interests of the Gulf countries range far wider and should lead to them taking a far wider helping role
Doha offers Iran a bridge to West
Balancing the competing demands of Washington and Tehran could be Qatar’s trickiest diplomatic task yet
Dubai must toe Abu Dhabi line
Ceding power will be tough for Dubai, but it is necessary for the sake of its economy and for the strength of the federation as a whole. Abu Dhabi’s decision to spend tens of billions of dollars bailing out Dubai begs the question of what Abu Dhabi will get in return
MPs should back Kuwaiti five-year plan
The economy’s health depends on the notoriously obstructive parliament voting for the proposal
Saudi wastewater strategy is still privatisation
Once the regional economy picks up, the government’s privatisation drive should gather speed
Capital will flee towards Egypt
International banks seeking to deploy capital will increasingly look to emerging economies with potential outside the Gulf
Saudi-US ties are crucial to peace
Saudi Arabia, as a long-standing ally, could play a critical role in helping Washington achieve it aims
Rising contractor prices will affect the region's oil giants
The kind of savings that Adnoc made last year on contractors’ prices are no longer available
Gulf contract disputes will lead to greater transparency
As Gulf states take on more international partners, they will have to get used to scrutiny
Dubai should delay Hassyan
Electricity authority needs to hold off on private plant until finance markets have improved
Public works will aid Kuwait
Writing off personal loans is only likely to encourage Kuwaitis to be more economically reckless
Oil firms should beware of the risks in Iraq
Lack of a national oil law means none of the oil firms can be certain their contracts will be legally secure
Burj Dubai tower offers a fresh start
The official opening is now more about Dubai trying to regain its previous optimism and ambition. Emaar Properties will be hoping the celebrations offer a chance to forget the past 12 months and start afresh
Algeria's tough energy terms are self-defeating
Algiers must take a long, hard look at its attitude to the firms it is asking to spend millions of dollars
Steady growth in Saudi Arabia will benefit all
The danger is that high levels of spending could create a Dubai-style boom, followed by a similar bust
Ties with China benefit Riyadh
King Abdullah bin Abdulaziz al-Saud’s first visit outside the Middle East after he became king was to China. His January 2006 trip to Beijing, five months after succeeding his half-brother, was the first by a Saudi monarch to the People’s Republic since diplomatic relations were established in 1990.
Last Word
Gulf states revise sustainable building principles
Pressure is easing for radical action to cut carbon emissions and regional states are beginning to realign their environmental priorities
Iraq's journey from democratic dream to sectarian headcount
An ancient divide is becoming the dominant factor in Iraq’s new politics. Voting is no answer
New life in the GCC project finance market
It’s a lenders market as Gulf borrowers prepare to tap the credit market
Fujairah offers a contingency plan to combat Iranian oil threat
Tehran is driving the West to distraction with its nuclear plans. The Gulf, meanwhile, will complete a project in April that should help make Gulf oil supplies more secure
Qatar takes the long view as its economy booms
Most of Qatar’s present energy industry investment programme will be completed this year. The next challenge is defining a long-term strategy for Qatar’s economy as a whole
