Saudi Arabia and UAE rank among the world's biggest exporters in 2009

By Ribal Dayekh in Dubai
For Al-Shorfa.com
2010-04-10

[Chris Jackson/Getty Images] Dock workers load goods into a cargo ship in Dubai port.

In a report issued Sunday (April 4th) on merchandise trade in 2009, ‎WTO Director General Pascal Lamy said that Saudi Arabia ranks 18th among the world's biggest exporters with a total export value of $189 billion in 2009, down 40% from last year, followed by UAE in 19th with a total export value of $175 billion.

Meanwhile, Saudi Arabia was ranked 30th among the world's largest importers. Its total import value, however, of $92 billion was down 20% from last year. UAE was ranked 24th with a total import value of $140 billion.

W TO figures show that the volume of merchandise trade would expand by 9.5% in 2010, after dropping 12.2% in 2009, the biggest contraction in more than 70 years. The forecasted growth comprises 7.5% for developed countries and 11% for developing countries.

Saudi real estate value declining

Land prices continued to decline in most Saudi cities during the first quarter of 2010. Average prices for land designated for commercial projects declined by 8.3%. Plots designated for residential projects declined in valued 2.3% compared with the same period in 2009.

Home prices in Riyadh witnessed an increase after a slight decline in 2009 with average prices of large apartments up by 6% compared to the second half of last year.

According to Banque Saudi Fransi's report, the main causes for the decline are a shortage of bank loans and the price decline in construction materials. The report also expected an increase in demand for houses in the Kingdom because of rapid population growth, estimated at 2%.

Syria seeks to boost oil production

Syrian Oil Minister Sufian Alao said the government has cancelled a 140,000 barrel per day refinery deal with Kuwait's Noor Financial, saying, "The project is no longer part of the current plans."

The Syrian government seeks to increase crude oil production by inviting foreign companies to invest in the drilling and exploration sector, especially given that crude oil production has dropped from a peak of 600,000 barrels per day in 1996 to 380,000 since 2007.

According to an IMF report, Syria's oil reserves will be totally depleted by 2028, because of increased local consumption and declining production.

Report highlights low salaries in Egypt

A study prepared by the Egyptian Investment Authority demanded that the minimum salary limit in Egypt be raised to be equal to the poverty line as defined by the concerned internal organisations.

Dr. Samir Ridwan, a consultant for the Egyptian Investment Authority, pointed out that the annual poverty line in Egypt is estimated at ‏1,968 Egyptian pounds for the individual, or 164 pounds per individual per month. For the average family of four individuals it is 656 pounds per month.

Ridwan pointed out that the minimum salary limit can never be below the poverty line rate. According to the official statistics, ‎the basic salary of an employee of the sixth level, the lowest rank in the administrative hierarchy, does not exceed 394 pounds per month, i.e. 98 pounds per individual in a family of four, well below the estimated poverty line.

UAE banks complete liquidity payments

Younis al-Khouri, director general of the UAE Finance Ministry, said on April 7th that the national banks have paid off all the outstanding amounts from the first quarter of 2010, especially liquidity guarantee amounts offered by the government in 2009.

The government imposed a 4-4.5% interest rate on the 50 dirham billion guarantee with some variance between the banks according to their contracts with the Ministry of Finance.

The UAE government still has 20 billion dirhams left from a 70 billion dirham facility set up in October 2008 to inject liquidity into the national banking system.

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