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Turkey offers infrastructure loan to Syria
Turkey extended a $247 million credit line to Syria in mid-October, to be spent on infrastructure projects that will be carried out by Turkish companies. The allocation ranks among the largest international commitments to Syria and will probably target the water network, the transport network, the electricity and the health systems, as these sectors remain in poor condition and are in massive need of funding. Syria’s Minister of Finance Mohammed el-Hussein stated that meeting the 6 percent annual increase in electricity demand alone would cost the country at least $9 billion. In addition, he said that infrastructure and international development cooperation were priorities for his ministry. However, critics have suggested that the agreement would benefit Turkey by boosting its exports without generating real investment for Syria.
Healthy deposits for Jordan’s banks
Jordan’s banking and financial system showed resilience to the global financial crisis thanks to tight regulations adopted by the Central Bank of Jordan (CBJ). The resulting solid performance of the banking sector led to a 4.5 percent rise in banks’ deposits that totaled $29 billion in the first half of 2010. In addition, all 15 local banks managed to post a profit in 2009, although their earnings declined by 27.5 percent from a year earlier. Faced with high levels of capital inflows, banks boosted their credit portfolio by 4.3 percent or $814 million in loans, lifting the total amount of credit facilities to $19.75 billion. Nonetheless, the Jordanian banks only focused on offering short-term loans; Deputy Chairman of the Jordan Chamber of Industry, Nazzal Armouti, stated that a financial institution offering loans with long maturities and reasonable interest rates is a basic need for the development of the industrial sector.
Dubai, Abu Dhabi housing vacancy to peak in 2012
The average vacancy of Dubai’s and Abu Dhabi’s housing markets is expected to rise by 10 percent in 2010 before it peaks at 12 percent in 2012, according to property consultancy Landmark Advisory. Apartment sale prices and rentals in Dubai continued to fall, with the average quarterly sale price down by 6.3 percent and the average quarterly rent price down by 5.8 percent. Residential sales volumes in Dubai plunged 30 percent in the third quarter of 2010 compared to the second quarter, pushing the rental volumes up by 25 percent. According to Landmark Advisory, this benefits Abu Dhabi companies through the availability of affordable and higher quality housing alternatives for staff working in Dubai. In addition, the consulting firm suggests that investors are holding off for opportunistic investments in the belief that prices will drop further. Its findings also showed that active construction of commercial office space in Dubai and Abu Dhabi that will almost double the existing supply.
