The United Arab Emirates (UAE) plans to outsource most government tasks to the private sector and cut the number of ministries, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said Monday.
The announcement comes as energy-rich Gulf Arab states have been hit by low oil prices, encouraging them to streamline institutions and attract more foreign investment. “We will have a road map to outsource most government services to the private sector . . . The new government will have a smaller number of ministries and more ministers to deal with national and strategic issues,” the Prime Minister said on his official Twitter account. He announced the formation of a single education ministry, marking the abolishment of the Ministry of Higher Education, and fused several other state bodies into related ministries. No time frame was given for the changes. [Reuters, 2/8/2016]
Protests intensified in Iraq’s Kurdistan region on Tuesday after the government unveiled new austerity measures to avert an economic collapse. Some Kurdish Peshmerga fighters blocked the main road outside their base in Sulaimaniyah on a third day of strikes and demonstrations by police and other government employees demanding their salaries. The Kurdistan Regional Government (KRG) announced last week it would pay only part of state workers’ salaries the region’s fiscal health improved. The new measures do not include employees of the Interior Ministry or peshmerga fighters who have pushed the Islamic State (ISIS or ISIL) back in northern Iraq. Kurdish officials have warned that the economic crisis could increase desertions from the Peshmerga and are asking foreign powers for financial assistance. The KRG has tried to make up the shortfall by increasing independent oil sales, but at oil current prices the region is still left with a monthly deficit of $717 million. [Reuters, 2/8/2016]
Egypt may miss its target of repaying the $3 billion it owes to foreign oil and gas companies by the end of 2016, Egyptian Prime Minister Sherif Ismail said Tuesday. Ismail told reporters at the World Government Summit in Dubai that the debt will “at least [be reduced] to a very reasonable” level by the end of year. The Egyptian government previously said it would repay its arrears by mid-2015, before pushing the target date to mid-2016 and then the end of the year. Ismail declined to offer a new target date, emphasizing the Egypt’s aim to “finalize this by the end of this year.” Ismail also said the government expects to present a long-awaited value added tax bill to parliament at the end of this month. He expects the bill to be ratified into law in the second quarter of 2016. [Gulf News, 2/9/2016]
General Motors has temporarily suspended its operations in Egypt due the country’s foreign currency crisis, a company source said. General Motors reportedly notified its 2,000 workers in Egypt that it would cease production – which requires about $35 million per month – until further notice or until it acquires the foreign exchange needed to import production components. “The entire sector has a currency crisis we can’t make a car without some of the parts. We stopped production temporarily as of yesterday until we can clear the imports held up in customs,” the source said. “There is still some leeway with the government and the banks to solve the issue.” [Reuters, AMAY (Arabic), 2/8/2016]
European Commission Spokesman for Agriculture and trade Daniel Rosario said that the European Commission is considering a proposal for tax-free imports of 35,000 tons of olive oil from Tunisia per year in 2016 and 2017. “The temporary and limited increase of a quota of olive oil provisions from Tunisia is part of the EU’s engagement in supporting the economy of the country,” Rosario said. The European Parliament is scheduled to discuss the proposal at a session on February 25. Meanwhile, Speaker of Tunisia’s House of People’s Representatives (HPR) Mohamed Ennaceur called on Monday for the European Union to establish a bailout plan for the Tunisian economy. Ennaceur said Europe should intensify its financial support for Tunisia’s development, transform Tunisia’s debts into investments, and help Tunisia recover capital illegally placed abroad, among other measures. [ANSAmed, 2/9/2016]
Also of interest
IEA raises estimate of surplus oil supply on higher OPEC output | Bloomberg
Dubai to press ahead with world’s largest mall as Gulf economy slows | Reuters
Pakistan to sign 15-year deal for 3.5 million tonnes of Qatari LNG per year | Reuters
Iraq raises official selling price of March Basra Light crude to Asia | Reuters
Egypt mulls terms of nuclear Dabaa contract with Russia | Ahram Online
Egypt’s non-oil exports down 16.5 percent in 2015 from 2014 | Ahram Online
National Bank of Egypt subsidiary says drops bid to buy CI Capital | Reuters
National Bank of Egypt subsidiary says drops bid to buy CI Capital | Reuters
Egypt cancels temporary tariff on sugar imports | Reuters
Tunisia passes two laws on loans from AfDB to fund road projects | TAP
Tunisia’s reported investments up 27 percent in January | TAP
Tunisia’s parliament starts looking at draft economic and financial laws | TAP
US Ambassador calls on Tunisia to work to revive free-trade agreement | TAP
UAE plans to trim ministries, outsource most government services
The United Arab Emirates (UAE) plans to outsource most government tasks to the private sector and cut the number of ministries, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said Monday. The announcement comes as energy-rich Gulf Arab states have been hit by low oil prices, encouraging them to streamline institutions and attract more foreign investment. “We will have a road map to outsource most government services to the private sector . . . The new government will have a smaller number of ministries and more ministers to deal with national and strategic issues,” the Prime Minister said on his official Twitter account. He announced the formation of a single education ministry, marking the abolishment of the Ministry of Higher Education, and fused several other state bodies into related ministries. No time frame was given for the changes. [Reuters, 2/8/2016]
Protests intensified in Iraq’s Kurdistan region on Tuesday after the government unveiled new austerity measures to avert an economic collapse. Some Kurdish Peshmerga fighters blocked the main road outside their base in Sulaimaniyah on a third day of strikes and demonstrations by police and other government employees demanding their salaries. The Kurdistan Regional Government (KRG) announced last week it would pay only part of state workers’ salaries the region’s fiscal health improved. The new measures do not include employees of the Interior Ministry or peshmerga fighters who have pushed the Islamic State (ISIS or ISIL) back in northern Iraq. Kurdish officials have warned that the economic crisis could increase desertions from the Peshmerga and are asking foreign powers for financial assistance. The KRG has tried to make up the shortfall by increasing independent oil sales, but at oil current prices the region is still left with a monthly deficit of $717 million. [Reuters, 2/8/2016]
Egypt may miss its target of repaying the $3 billion it owes to foreign oil and gas companies by the end of 2016, Egyptian Prime Minister Sherif Ismail said Tuesday. Ismail told reporters at the World Government Summit in Dubai that the debt will “at least [be reduced] to a very reasonable” level by the end of year. The Egyptian government previously said it would repay its arrears by mid-2015, before pushing the target date to mid-2016 and then the end of the year. Ismail declined to offer a new target date, emphasizing the Egypt’s aim to “finalize this by the end of this year.” Ismail also said the government expects to present a long-awaited value added tax bill to parliament at the end of this month. He expects the bill to be ratified into law in the second quarter of 2016. [Gulf News, 2/9/2016]
General Motors has temporarily suspended its operations in Egypt due the country’s foreign currency crisis, a company source said. General Motors reportedly notified its 2,000 workers in Egypt that it would cease production – which requires about $35 million per month – until further notice or until it acquires the foreign exchange needed to import production components. “The entire sector has a currency crisis we can’t make a car without some of the parts. We stopped production temporarily as of yesterday until we can clear the imports held up in customs,” the source said. “There is still some leeway with the government and the banks to solve the issue.” [Reuters, AMAY (Arabic), 2/8/2016]
European Commission Spokesman for Agriculture and trade Daniel Rosario said that the European Commission is considering a proposal for tax-free imports of 35,000 tons of olive oil from Tunisia per year in 2016 and 2017. “The temporary and limited increase of a quota of olive oil provisions from Tunisia is part of the EU’s engagement in supporting the economy of the country,” Rosario said. The European Parliament is scheduled to discuss the proposal at a session on February 25. Meanwhile, Speaker of Tunisia’s House of People’s Representatives (HPR) Mohamed Ennaceur called on Monday for the European Union to establish a bailout plan for the Tunisian economy. Ennaceur said Europe should intensify its financial support for Tunisia’s development, transform Tunisia’s debts into investments, and help Tunisia recover capital illegally placed abroad, among other measures. [ANSAmed, 2/9/2016]
IEA raises estimate of surplus oil supply on higher OPEC output | Bloomberg
Dubai to press ahead with world’s largest mall as Gulf economy slows | Reuters
Pakistan to sign 15-year deal for 3.5 million tonnes of Qatari LNG per year | Reuters
Iraq raises official selling price of March Basra Light crude to Asia | Reuters
Egypt mulls terms of nuclear Dabaa contract with Russia | Ahram Online
Egypt’s non-oil exports down 16.5 percent in 2015 from 2014 | Ahram Online
National Bank of Egypt subsidiary says drops bid to buy CI Capital | Reuters
Egypt cancels temporary tariff on sugar imports | Reuters
Tunisia passes two laws on loans from AfDB to fund road projects | TAP
Tunisia’s reported investments up 27 percent in January | TAP
Tunisia’s parliament starts looking at draft economic and financial laws | TAP
US Ambassador calls on Tunisia to work to revive free-trade agreement | TAP
The United Arab Emirates (UAE) plans to outsource most government tasks to the private sector and cut the number of ministries, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said Monday. The announcement comes as energy-rich Gulf Arab states have been hit by low oil prices, encouraging them to streamline institutions and attract more foreign investment. “We will have a road map to outsource most government services to the private sector . . . The new government will have a smaller number of ministries and more ministers to deal with national and strategic issues,” the Prime Minister said on his official Twitter account. He announced the formation of a single education ministry, marking the abolishment of the Ministry of Higher Education, and fused several other state bodies into related ministries. No time frame was given for the changes. [Reuters, 2/8/2016]
Protests intensify in Iraqi Kurdistan amid economic crisis
Protests intensified in Iraq’s Kurdistan region on Tuesday after the government unveiled new austerity measures to avert an economic collapse. Some Kurdish Peshmerga fighters blocked the main road outside their base in Sulaimaniyah on a third day of strikes and demonstrations by police and other government employees demanding their salaries. The Kurdistan Regional Government (KRG) announced last week it would pay only part of state workers’ salaries the region’s fiscal health improved. The new measures do not include employees of the Interior Ministry or peshmerga fighters who have pushed the Islamic State (ISIS or ISIL) back in northern Iraq. Kurdish officials have warned that the economic crisis could increase desertions from the Peshmerga and are asking foreign powers for financial assistance. The KRG has tried to make up the shortfall by increasing independent oil sales, but at oil current prices the region is still left with a monthly deficit of $717 million. [Reuters, 2/8/2016]
Egypt may not meet 2016 target to pay back oil arrears
Egypt may miss its target of repaying the $3 billion it owes to foreign oil and gas companies by the end of 2016, Egyptian Prime Minister Sherif Ismail said Tuesday. Ismail told reporters at the World Government Summit in Dubai that the debt will “at least [be reduced] to a very reasonable” level by the end of year. The Egyptian government previously said it would repay its arrears by mid-2015, before pushing the target date to mid-2016 and then the end of the year. Ismail declined to offer a new target date, emphasizing the Egypt’s aim to “finalize this by the end of this year.” Ismail also said the government expects to present a long-awaited value added tax bill to parliament at the end of this month. He expects the bill to be ratified into law in the second quarter of 2016. [Gulf News, 2/9/2016]
GM suspends Egypt operations due to currency crisis
General Motors has temporarily suspended its operations in Egypt due the country’s foreign currency crisis, a company source said. General Motors reportedly notified its 2,000 workers in Egypt that it would cease production – which requires about $35 million per month – until further notice or until it acquires the foreign exchange needed to import production components. “The entire sector has a currency crisis we can’t make a car without some of the parts. We stopped production temporarily as of yesterday until we can clear the imports held up in customs,” the source said. “There is still some leeway with the government and the banks to solve the issue.” [Reuters, AMAY (Arabic), 2/8/2016]
EU proposes extra olive oil imports from Tunisia in 2016-17
European Commission Spokesman for Agriculture and trade Daniel Rosario said that the European Commission is considering a proposal for tax-free imports of 35,000 tons of olive oil from Tunisia per year in 2016 and 2017. “The temporary and limited increase of a quota of olive oil provisions from Tunisia is part of the EU’s engagement in supporting the economy of the country,” Rosario said. The European Parliament is scheduled to discuss the proposal at a session on February 25. Meanwhile, Speaker of Tunisia’s House of People’s Representatives (HPR) Mohamed Ennaceur called on Monday for the European Union to establish a bailout plan for the Tunisian economy. Ennaceur said Europe should intensify its financial support for Tunisia’s development, transform Tunisia’s debts into investments, and help Tunisia recover capital illegally placed abroad, among other measures. [ANSAmed, 2/9/2016]
Also of interest
IEA raises estimate of surplus oil supply on higher OPEC output | Bloomberg
Dubai to press ahead with world’s largest mall as Gulf economy slows | Reuters
Pakistan to sign 15-year deal for 3.5 million tonnes of Qatari LNG per year | Reuters
Iraq raises official selling price of March Basra Light crude to Asia | Reuters
Egypt mulls terms of nuclear Dabaa contract with Russia | Ahram Online
Egypt’s non-oil exports down 16.5 percent in 2015 from 2014 | Ahram Online
National Bank of Egypt subsidiary says drops bid to buy CI Capital | Reuters
Egypt cancels temporary tariff on sugar imports | Reuters
Tunisia passes two laws on loans from AfDB to fund road projects | TAP
Tunisia’s reported investments up 27 percent in January | TAP
Tunisia’s parliament starts looking at draft economic and financial laws | TAP
US Ambassador calls on Tunisia to work to revive free-trade agreement | TAP