Middle East Central Asia Economic Structure
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The Middle East and Central Asian economic structure has undergone changes following the global recession of 2008-2009. While both the regions are heavily banking on an increase in oil prices, the fiscal policies of the three largest economies in the region, Saudi Arabia, United Arab Emirates and Kazakhstan, are concentrated primarily on restructuring their economy following the recession.[br]
Middle East Economic Structure: Saudi Arabia and UAE
The Dubai government’s budget for 2010 is aligned to pursuing a progressive fiscal program to support all sectors of the economy. The key features included in the 2010 budget were the completion of the Emirate’s infrastructure projects and improving social aspects of the region. According to the budget, the government’s revenues would reach Dhs29.4 billion, while spending would reach Dhs35.4 billion in 2010. In the social sector, education and health were awarded 41% of the fiscal allotment, infrastructure development was allotted 17.5% and government services were allotted 39%.
Saudi Arabia posted a deficit in 2009 in the wake of the recession. The actual deficit of SR45 billion was less than the projected $65 billion in the 2009 budget due to a rise in oil prices. The 2010 budget projects revenues at SR470 billion, higher than the 2009 revenues. Overall spending is projected at SR540 billion, again higher than the 2009 expenditure of SR475 billion. About 48% of the budget’s allocations are reserved for capital investment projects, with a view to improving the infrastructure, and will also include increased spending on education and training. SR23.9 billion has been reserved for roads, ports and airport development.[br] SR46 billion has been reserved for water and sewage network development. The oil GDP is expected to grow to 4.3% in 2010, provided the price of oil reaches $73/barrel.
Central Asia Economic Structure: Kazakhstan
According to UniCredit, GDP growth in Kazakhstan would touch 2.5% in 2010 due to an increase in commodity prices and large projects in the construction, power, oil and gas sectors. The budget for 2010-2012 predicts GDP growth of 2.4% in 2010 to 3.9% in 2012. The inflation is also expected to fall to 7% by 2012. The 2010 revenues are expected at KZT3.076 billion, accounting for 17.6% of the GDP.
