IMF downgrades 2024 MENA economic growth to 2.9%
Jihad Azour said the UAE is set to grow by 3.8% in 2024.
2 min
Growth in the Middle East and North Africa (MENA) economies is projected at 2.9% this year as the region battles the impacts of the Israel-Gaza conflict, lower oil production, and tight policy settings, the IMF said on Wednesday.
The fund revised downwards its October outlook for 2024 growth projections by 0.5 percentage point with 2023 growth at 2%, Jihad Azour, director of the IMF’s Middle East and Central Asia Department said at a briefing on the 2024 Regional Economic Outlook Update on Wednesday.
“In addition to its devastating impact, the conflict is having adverse economic consequences on the broader MENA region… at a time when growth was already slowing, and the region was facing existing challenges. In particular, debt levels remain high and inflation has not yet been sufficiently brought down in many economies,” said Azour.
The heightened security situation in the Red Sea has raised more concerns about the conflict’s impact on trade and on shipping costs, while oil production cuts by several oil exporters are weighing on overall GDP growth, although non-oil sector activity remains robust, he added.
Azour said one encouraging development was that inflation has continued to decline in most major economies in line with global trends, except in some parts of the region due to country specific challenges.
With regard to the UAE, the IMF expects the economy to grow by 3.8% in 2024. “This growth is mainly driven by the non-oil sector and, therefore, despite extension of the cuts in oil production and oil export… we expect that growth will be at 3.8%.”
He also expects the UAE to see an inflation rate of 2.3% this year. “Over the last few years, the UAE was able to keep inflation under control, which means that this will help address issues related to price increase, as well as improve the overall macroeconomic situation in the UAE…”
He said as Egypt, due to its proximity to Palestine, was heavily impacted by the conflict, it was necessary for the fund to revise its growth forecast for 2024 to 3% compared to 3.8% last year.
On the negotiations that are underway between the IMF and the Egyptian authorities, he said the first and second reviews are being looked into and the negotiations were continuing.
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Highlighting a significant recovery and robust growth across all key performance metrics.
3 min
Bank of Sharjah has released its results for the period ending 30 June 2024, showcasing robust performance and strong momentum since the beginning of the year. The Bank reported a net profit of AED 171 million, a significant turnaround from the AED 144 million loss in the same period last year.
This remarkable improvement is attributed to a substantial increase in net interest income, stringent credit underwriting, and reduced operating costs, marking a 233% increase over the previous year when excluding the one-time impairment charge from de-linking its Lebanese subsidiary.
The Bank’s exceptional financial results highlight the effectiveness of its strategic focus on sustainable growth, with notable improvements across all major performance metrics. Funded and unfunded income both saw increases, with net interest income rising by 108% and operating income growing by 34%.
Additionally, the cost-to-income ratio improved significantly to 40.1% due to cost discipline measures. The balance sheet remains strong with a loans-to-deposits ratio of 86.63%, indicating comfortable liquidity. The Bank also maintains strong capitalization, with a regulatory capital adequacy ratio exceeding 15% and Tier 1 and CET1 capital ratios around 14%. These positive results underscore the Bank’s underlying strength, operational efficiency, prudent risk management, and ongoing enhancement of shareholder value.
Commenting on the Bank’s results, Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, stated: “We are pleased with our outstanding performance in the first half of 2024, which reflects our commitment to adding value to our customers, supporting our communities, and rewarding our shareholders. Despite the challenging geopolitical situation in the region, the UAE economy has remained resilient and continues to register healthy growth following various economic diversification initiatives that provide consistent impetus for trade, investment, and wealth creation. Bank of Sharjah has entered a new chapter with a new leadership team, focused on building new business streams, expanding our reach across the UAE and the region, and delivering exceptional service to our customers.”
He added: “Our performance in the first half of the year demonstrates the effectiveness of our new strategy, and we look forward to delivering continued growth in the years to come.”
The CEO, Mr. Mohamed Khadiri, commented “2024 has begun exceptionally well for Bank of Sharjah, with the bank achieving a record year-on-year profit. I am delighted with our stellar performance as we continue to strengthen the bank’s fundamentals. Our outstanding results reaffirm that our new business strategy is on track to deliver sustainable revenue growth, driven by business expansion, operational efficiency, prudent risk management, and talent development. This achievement is also a testament to the Bank’s success in providing high-quality financial services that meet the aspirations and growing needs of our customers.”
He further added: “Bank of Sharjah is a strong and respected brand within the local community. We are leveraging our core strengths to build a platform that will operate at its full potential across the UAE and the region. The Bank remains focused on executing our strategy and is well-positioned to maintain strong performance throughout 2024 and beyond.”
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Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
