US Export Council - MENA Region - Opportunities for US Business

Oct. 15, 2008 - PRLog -- The markets of the Middle East and North Africa (MENA) offer significant opportunities for U.S. Business.

Countries in the MENA Region continue to ease the regulatory burden of doing business, according to Doing Business 2009—the sixth in an annual series of reports published by IFC and the World Bank.

For a third time, Egypt is one of the top 10 economies that reformed their business regulations, while both Saudi Arabia and Bahrain rank among the top 25 worldwide on the ease of doing business.  In two-thirds of the region’s economies, the report records 27 reforms between June 2007 and June 2008 that make it easier to do business.

Economies across the region have been booming, thanks to record oil and gas prices and economic development and trade is growing rapidly.

Oil and gas wealth is being used to build for the future and to diversify economies. The financial centers of the Gulf are expanding – bringing opportunities in banking, insurance, legal services and Islamic finance.

Projects valued at over US$1.2 trillion are currently planned or underway in the Gulf alone, including ports, airports, rail, industrial, residential medical and educational developments as well as water and power projects critical to the region's economic development

Investment in Healthcare in the Gulf alone is forecast to reach US$60 billion by 2025: a major leap from US$15 billion today.

Many of the North African countries have enjoyed stellar economic growth. Morocco has notched up economic growth of 8% in the past year, Egypt 7% and Tunisia 6%

Egypt, which was the world’s top reformer of business regulations last year, continued to lead, with improvements in six of the 10 areas the report covers. Egypt advanced 11 places in the global rankings on the ease of doing business.  

The region’s other leaders in reforming regulations are Saudi Arabia and Tunisia; each made it easier to do business in four areas.

David Altman, Director of the US Export Council said: “It would appear that North Africa ‘is coming of age”. “Local industries are developing thanks to inward investment and there’s far more confidence due to economic reforms, an improving banking climate and a growing credit sector.” “There is obviously plenty of work still to be done to keep up in an increasingly competitive global environment and the region will have to continue to make meaningful structural reforms in the business climate, particularly with regard to trade policy, governance and of course transparency” said Mr. Altman

GDP growth in the Middle East is expected to run at an average 7.5% between now and 2012 although with the international financial crisis those projections may be reset.

The countries across the MENA (Middle East and North Africa) region are investing large sums to develop the world class education and skills necessary to drive innovation, develop new industries and attract foreign investment

For a fifth year, the region’s most popular area for reform is business start-up, with nine economies making improvements. Yemen implemented one of the boldest reforms, reducing the world’s second-highest minimum capital requirement and launching a one-stop shop for business start-ups. The next most popular area for reform, credit bureau enhancements that improve access to credit, saw activity in Egypt, Morocco, Tunisia, the United Arab Emirates, and the West Bank and Gaza.

Mr Altman said “Libya which is now open for US Companies has begun some market oriented reforms. The Libyan economy is driven by the oil and gas sector accounting for 95% of the country’s export revenues.  Economic reform is a top priority for the Libyan government, despite the complexities of Libya policy-makers.” "The US Oil and Gas companies are already operating with most other sectors posing excellent prospects for US firms" he added

Opportunities exist for US Companies in Libya include:

Consumer Products
Oil and Gas Services
Refining
Transport
Engineering Services
Construction - Housing
Road and Bridge Construction
Seaports Modernization
Construction of schools and hospitals
Tourism – Growth in hotel construction is forecast to increase the number of beds to 10,000 by 2010 as part of a US$7 billion tourist development plan.
Airports Construction – a new terminal at Tripoli International Airport and the construction of a new airport in Benghazi are a priority.
Power and electricity – the power sector is set to double in terms of output from 4,700MW to 9,700MW within the next five years at a projected cost of US$7.5 billion
Desalination and Water Treatment –
Water and sewerage projects – US$6 billion has been allocated to waste water systems and management

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The US Export Council provides assistance to American firms seeking access to export and investment markets in the Gulf States, Middle East and Africa. http://www.usexportcouncil.com