Signs of stabilisation in Egypt and UAE

Financial markets across the MENA region have been hit over the past few months, but there are at least signs that growth has stabilised in key economies. After a disappointing first half of the year, timely data indicate that both the UAE and Egypt have turned the corner. And our GDP Tracker suggests that growth in Saudi Arabia remained strong. We continue to think that the Gulf economies will slow over the coming years as they adjust to cheap oil. But these latest developments support our view that this is likely to be a gradual process. As for Egypt, we think some of the constraints on growth should lift in the coming quarters.