Gulf Air about to launch flights to Kabul

Bahrain-based aviation company Gulf Air launched flights to the Afghan capital, Kabul, on the 15th June. Gulf Air will be the first “full service” regular commercial carrying company in the Middle East to connect the Afghan capital with the rest of the world. Gulf Air plans to operate flights to Afghanistan five times a week. Flights will depart from Bahrain to Kabul International Airport and from there to other world airports. The Technical and Operational Deputy Minister of Transport and Civil Aviation, Captain Sayed Mehdi Sayedi, said that starting a flight connection between Bahrain and Afghanistan will promote the aviation services in the country and start a new phase of relations between Afghanistan and Bahrain.

UAE plans solar project in Afghanistan

In order to support the “International Year of Sustainability” the UAE plans to establish a solar project in Afghanistan. In total the project will supply 8 isolated villages and 600 households. Providing access to clean energy for everyone is the major goal of the initiative launched by the United Nations. The private sector is especially encouraged to invest in projects supporting renewable energy, create new innovations and set up new projects especially in remote areas. For the UAE renewable energy plays a crucial role in diversifying its energy supply and reducing its dependency on fossil fuels. Next to Afghanistan, the UAE plans to invest in clean energy projects in various countries utilising solar, wind and water technology.

Algerian GDP expected to boost by 4% in 2013

According to an International Monetary Fund forecast Algerian GDP will rise by 3.3% in 2012, after an increase of 2.9% in 2011 and is expected to expand by 4% by the year 2013. Base of these prospects are the rising hydrocarbon exports and substantial financial reserves. Besides that, the government’s investment plan comes to fruition, which includes an USD 294m subsidy for local business development. The plan stipulates to support small and medium-sized companies, improve transportation and water infrastructure, education and housing projects. Through the higher state revenues administration was able to increase public spending without making an unsustainable deficit. Investments in projects of the gas and oil sector and simultaneously using these revenues to diversify their economy and improving living standards the country has established a strong base for future economical growth.

Bahrain plans to expand its housing and construction sector

The growing population and the slowing of activity in the building sector present Bahrain’s construction sector with challenges. In contrast to other economic branches contributing much to the excellent performance of Bahrain’s economy, the construction sector experienced a decline of 7% year-on-year in the second quarter of 2011. According to a report by the Economic Development Board about 350,000 housing units will be needed by 2030 to satisfy the growing demand. Currently there is a deficit of 40,000 housing units. To meet the demand of affordable housing USD 1.1bn need to be invested annually until 2020 and then USD 242m until 2030. In acknowledgement of the problem the state is committed to increasing investments and incentives to attract the private sector. The involvement of the private sector could help to solve the current housing shortage and may help the construction sector to expand.

Expansion of information economy in Egypt

According to a report from the UN Conference on Trade and Development (UNCTAD) Egypt has much potential to become a future major player in information and communication technology (ICT). Without doubt information technology has played an important role in overturning the political regime in Egypt. Due to promising development indicators, such as a good infrastructure, an educated and multi-lingual workforce as well as its export-oriented business sector, Egypt provides perfect conditions for an emerging IT industry. Furthermore, its location allows Egypt’s industry not only to serve Europe, but also Asia and Africa. Thanks to these conditions a number of international companies have already established outsourcing centres in Egypt. Next to its successful outsourcing service, Egypt is expected to develop niches, such as Arabic-language services.

Iran’s GDP per capita will double by 2016

Following the development of Iran’s gross domestic product (GDP) per capita and regarding the trend of the GDP Index it is expected that Iran’s GDP per capita is going to double by 2016 in comparison to the 2010 level. Iranian GDP per capita reached USD 5,710 in 2010 and increased to USD 6,660 in 2011. For 2012 the estimated GDP per capita will hit USD 7,590. Further estimations see the growing of the GDP per capita in 2013 at USD 8,530 and USD 11,880 in 2016, an increase of 100% regarding the GDP Index in 2010. This trend is additionally supported by the government released reform package, which aims to reduce subsidies and to strengthen the private sector.

German-Iranian trade relations in 2011

In 2011, German exports to Iran amounted to EUR 3.1bn while imports from Iran were worth EUR 769m. With regard to the year 2010, trade between the Islamic Republic of Iran and Germany decreased by about 18%. Though, Germany remains Iran’s most important western trade partner, after China and the United Arab Emirates. As of recent years, Iran’s economy is able to substitute the reducing trade volume of western countries by its Asian trade partners, primarily China. In 2011, the bilateral trade volume between Iran and China reached USD 45bn. Compared to the trade volume of USD 29bn in 2010 this marks an increase by 55.17%.