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Qatar, not Dubai, jewel of the Middle East

Qatar, not Dubai, jewel of the Middle East article image

The Export Finance and Insurance Corporation (EFIC) has indicated that businesses with connections in Dubai can expect payment delays, contract renegotiations and unfair calling of performance bonds with the emirate's construction boom coming to an end. In EFIC’s World Risk Developments newsletter for July, senior economist Dougal Crawford warns: "Up to US$250 billion worth of projects could be cancelled or postponed." Dubai's economy could decline by up to 10 percent this year, he reported. Exporters should instead look to nearby Qatar, which is forecast to grow by 18 percent this year due to an increase in gas investment and production. "While neither Dubai nor Qatar are major trading partners of Australia, they all do matter increasingly to corporate Australia, especially as its resource and engineering companies expand into the Gulf and Africa to take advantage of the infrastructure and resource opportunities on offer there," said EFIC's chief economist Roger Donnelly. The newsletter highlighted that resource-based economies seemed to weather the global economic conditions better than economies that over-borrowed in the boom years.

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