North America and Global Economy

North America and Global Economy

CPL2-561-781

Economic Intelligence Report

Region: Middle East

Presented to

Dr. Kenneth N. Matziorinis

By

Fares Mechelany 110145396

Cong Chau 118513027

McGill University

Center for Continuing Education

Table of Content

Table of Content

I- Regional Map

II- Break Down by Country……………………………………………………………..6

III- Introduction and Gulf Co-operation council agreement

IV- Regional Overview

V- The Countries Of the Middle East

Bahrain

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Kuwait

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Oman

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Qatar

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Saudi Arabia

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

United Arab Emirates

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Israel

Background

Lebanon

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Transnational Issues

Syria

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Jordan

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Yemen

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Iran

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

Iraq

Background

Geographic and Cultural Information

Institutional and Political Information

Main Affiliations With International Organizations

Economic Information

Trade Information

Development Indicators

Infrastructure And Communications

References

I- Regional Map

II- Country breakdown

Gulf Co-operation Council

BAHRAINKUWAIT OMAN

QATAR SAUDI ARABIAUNITED ARAB EMIRATES

Other Countries

ISRAEL LEBANONSYRIA JORDANYEMEN

IRAN IRAQ

III- Introduction and Gulf Co-operation council agreement

The region's vast natural resources have long been a focus of interest for Canadian trade and investment. The wide divergences in political and economic circumstances throughout the region present a host of challenges and opportunities for business.

GCC Agreement

The GCC moves ahead with a long-promised customs union, despite some sour political ties

It is not exactly like opening a joint cheque account, but the decision by the leaders of the six Gulf Co-operation Council (GCC) states in December to move ahead with a planned customs union does mark a watershed in relations between them. The union is a concrete step toward further economic co-operation between the states, something that the group has been slowly working to achieve since it was established in 1981. Its execution will, moreover, serve as a test of the commitment of GCC leaders to a proposal for a common currency by 2010.

Under the customs union accord, goods entering the GCC are to face a uniform customs tariff of 5%, and will not be taxed again should they cross from one GCC state to another. An exception to this system will remain products such as pork and alcohol, which are banned in some countries and highly taxed in others. Although the GCC has made no explicit statement on this presumably the locally imposed high customs taxes on these products (often in excess of 100%) will remain. The UAE, for example, has announced that it will maintain a 100% tariff on tobacco products.

Glitches

There are a few more glitches that have yet to be resolved. The member states agreed that a number of locally produced items will continue to be protected, apparently through both higher customs tariffs at local ports and an exception to the agreement on duty-free movement of goods across borders. The states have also agreed temporary measures to resolve concerns about anti-dumping measures. These exceptions relate to some of the worries expressed about the establishment of a customs union. Saudi Arabia in particular has pursued a strategy of import substitution, and the lower tariffs required by the customs union will increase competition faced by local industry.

The other temporary fix adopted by the GCC relates to the distribution of customs revenue. The new system opens up the possibility for shifts in customs revenue collection, as exporters potentially opt for the bulk discharge of goods at larger ports and transhipped goods no longer attract any legitimate customs charges. In mid-2002, however, GCC finance ministers agreed that revenue would be distributed on the basis of the ultimate destination of the imported goods. The system is probably a bit unwieldy, and already there are suggestions that it be changed.

Although there will be some battles fought over these issues, it is highly unlikely that the GCC will backtrack on the union. Rather, some sort of more permanent fudge on these issues is likely to emerge over the next few years, with the nature of the compromise being influenced by the actual experience of the customs union.

IV- Regional Overview

Imports of each country with Canada (In Thousands of Cad $)

Imports / 1995 / 1996 / 1997 / 1998 / 1999 / 2000 / 2001
Bahrain / $ 1,467 / $ 1,479 / $ 2,391 / $ 5,831 / $ 5,097 / $ 7,606 / $ 11,815
Kuwait / $ 35 / $ 208 / $ 1,971 / $ 2,607 / $ 3,096 / $ 865 / $ 18,864
Oman / $ 998 / $ 599 / $ 842 / $ 854 / $ 1,593 / $ 5,721 / $ 2,750
Katar / $ 511 / $ 371 / $ 37,840 / $ 9,626 / $ 6,111 / $ 9,884 / $ 14,333
Saudi Arabia / $501,830 / $650,775 / $647,775 / $393,852 / $429,452 / $916,072 / $800,432
Arab / $ 5,989 / $ 14,657 / $ 13,652 / $ 11,925 / $ 29,012 / $143,415 / $ 72,211
Lebanon / $ - / $ 5,612 / $ 5,668 / $ 7,972 / $ 15,326 / $ 8,489 / $ -
Sybia / $ - / $ 29,155 / $ 1,367 / $ 11,554 / $ 2,442 / $ 45,390 / $ -
Jordan / $ - / $ 1,438 / $ 885 / $ 1,004 / $ 989 / $ 2,721 / $ -
Yemen / $ 57 / $ 11,179 / $ 28,924 / $ 136 / $ 263 / $ 103 / $ 125

Exports of each country with Canada (In Thousands of Cad $)

Exports / 1995 / 1996 / 1997 / 1998 / 1999 / 2000 / 2001
Bahrain / $ 17,641 / $ 15,427 / $ 10,769 / $ 9,414 / $ 12,649 / $ 13,923 / $ 13,552
Kuwait / $ 64,836 / $ 77,672 / $ 55,431 / $ 65,869 / $ 38,328 / $ 42,803 / $ 59,699
Oman / $ 24,339 / $ 10,979 / $ 14,849 / $ 15,098 / $ 11,525 / $ 11,091 / $ 19,292
Katar / $ 11,489 / $ 16,965 / $ 16,312 / $ 16,938 / $ 11,162 / $ 23,034 / $ 25,969
Saudi Arabia / $521,085 / $639,104 / $557,689 / $315,558 / $296,416 / $324,361 / $327,348
Arab / $200,878 / $172,857 / $260,353 / $290,616 / $180,354 / $224,265 / $206,270
Lebanon / $ - / $ 64,747 / $ 62,846 / $ 45,270 / $ 46,001 / $ 35,177 / $ -
Sybia / $ - / $ 21,347 / $ 24,251 / $ 27,324 / $ 21,222 / $ 12,347 / $ -
Jordan / $ - / $ 35,114 / $ 14,726 / $ 21,948 / $ 19,579 / $ 22,304 / $ -
Yemen / $ 18,997 / $ 5,922 / $ 10,070 / $ 6,112 / $ 24,367 / $ 18,097 / $ 35,977

V- The Countries of the Middle East

Bahrain

BAHRAIN

Background

Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Possessing minimal oil reserves, Bahrain has turned to petroleum processing and refining, and has transformed itself into an international banking center. The new amir is pushing economic and political reforms, and has worked to improve relations with the Shi'a community. In 2001, the International Court of Justice awarded the Hawar Islands, long

Geographic and Cultural Information

Official name / : State of Bahrain (Dawat al Bahrayn)
Location / : Middle East, archipelago of 35 islands in the Persian Gulf, east of Saudi Arabia
Capital / : Manama
Population / : 645,361
Climate / : Arid; mild pleasant winters; very hot, humid summers
Area / : 620 Sq. km.
Languages / : Arabic (official), English, Farsi, Urdu
Religions / : Shi'a Muslim (60%), Sunni Muslim (28%), other (12%)
National holidays / : National Day (16-17 December), Independence Day (15 August)
Religious holidays / : Id Al Fitr (end of Ramadan), Id Al Adha (Feast of the Sacrifice),Muharram (Islamic New Year). Dates may vary according to the Islamic lunar calendar

Institutional and Political Information

Political system / : Constitutional Monarchy
Legal system / : Based on Islamic Law (Shari'a) and English Common Law
National government / : A unicameral 30-member elected National Assembly was dissolved in 1975. The National Action Charter created a bicameral legislature on Dec. 23, 2000; approved by referendum of Feb. 14, 2000.
Head of state / : Amir Hamad bin Isa Al Khalifa (since March 1999)
Head of government / : Prime Minister Khalifa bin Salman Al Khalifa
Last elections / : None
Next elections / : None
Suffrage / : None
Main political parties / : None

Main Affiliations With International Organizations

Arab Bank for Economic Development in Africa (ABEDA),Arab Fund for Economic and Social Development (AFESD), League of Arab States, Arab Monetary Fund (AMF), Economic and Social Commission for Western Asia (ESCWA), United Nations Food and Agricultural Organization (FAO), G-77, Gulf Co-operation Council (GCC), International Civil Aviation Organisation (ICAO), International Labour Organisation (ILO), International Monetary Fund (IMF), International Maritime Organisation (IMO), International Criminal Police Commission (Interpol), Organization of the Islamic Conference, Islamic Development Bank (IDB), International Telecommunication Union (ITU), Organisation of Arab Petroleum Exporting Countries (OAPEC), United Nations (UN), United Nations Educational, Scientific and Cultural Organisation (UNESCO), United Nations Industrial Development Organisation (UNIDO), Universal Postal Union (UPU), World Health Organisation (WHO), World Meteorological Organisation (WMO), International Bank for Reconstruction and Development (IBRD), World Trade Organisation (WTO)

Economic Information

Gross domestic product (GDP) / : $US 8 billion (2000 est.)
GDP structure / : Agriculture 1 %, Industry 46 %, Services 53 %
GDP growth / : 2.5 %
Inflation / : 2 %
Foreign debt / : $US 2.7 billion (est.)
National currency / : Bahraini Dinar (BHD)
Exchange rate / : $1 CAD= 0.242 BHD (2002)
Unemployment rate / : 2.7 %
Natural resources / : Petroleum, natural gas, fish , pearls
Agricultural production / : Fruit, vegetables, dairy products, fish, shrimp
Main industries / : Petroleum processing and refining, aluminium, shipbuilding, financial services, tourism

Trade Information

Exports / : $US 5.8 billion
Imports / : $US 4.2 billion
Main exports / : Petroleum and petroleum products, aluminium
Main imports / : Crude oil
Main partners for export / : India, Saudi Arabia, USA, United Arab Emirates, Japan, South Korea
Main partners for import / : France, USA, UK, Saudi Arabia, Japan
TRADE BETWEEN CANADA AND BAHRAIN
- in thousands CAD$ -
1995 / 1996 / 1997 / 1998 / 1999 / 2000 / 2001
Exports / 17 641 / 15 427 / 10 769 / 9 414 / 12 649 / 13 923 / 13 552
Imports / 1 467 / 1 479 / 2 391 / 5 831 / 5 097 / 7 606 / 11 815
Main Canadian exports / : Pulp and paper products, machinery, electronics
Main Canadian imports / : Clothing, aluminium, machinery

Development Indicators

Population / : 645,361
Population growth / : 1.73 %
Fertility rate / : 2.79 children born/woman
Infant mortality rate / : 19.77 deaths/ 1000 births
Life expectancy / : 73.3 years
Literacy rate / : 87.6 %
Human development index / : 39th out of 173 countries worldwide (2002)
HIV/AIDS - people living with the disease / : n/a
HIV/AIDS - deaths / : n/a

Infrastructure And Communications

Airports / : 3 airports ( 2 with paved runways)
Railway / : none
Roadways / : 3164 km
Main ports / : Manama, Mina'Salman, Sitrah
Gas pipelines / : Natural gas, 32 km
Oil pipelines / : Crude oil 56 km, petroleum products, 16 km
BILATERAL RELATIONS CANADA-BAHRAIN
Canada's ties with Bahrain are not extensive. Bahrain is represented in Canada through its Ambassador in Washington. Ambassador Melvyn MacDonald is accredited to Manama from Riyadh.
In November 2000, former Prime Minister Kim Campbell visited Bahrain to speak at the Annual Conference of the Arabian Society for Human Resources Management.
Bahrain was not represented at the Landmines Conference in December 1997, nor has it signed the Ottawa Convention.

Kuwait

KUWAIT

Background

Kuwait was attacked and overrun by Iraq on 2 August 1990. Following several weeks of aerial bombardment, a US-led UN coalition began a ground assault on 23 February 1991 that completely liberated Kuwait in four days. Kuwait has spent more than $5 billion to repair oil infrastructure damaged during 1990-91.

Geographic and Cultural Information

Official name / : State of Kuwait
Location / : Middle East, bordering the Persian Gulf, between Iraq and Saudi Arabia
Capital / : Kuwait City
Population / : 2 111 561 (2002 est.)
Climate / : Dry desert, hot summers, cool short winters.
Area / : 17 818 sq km
Languages / : Arabic (official), English is widely understood
Religions / : Sunni Muslim (45%), Shi'a Muslim (40%), Christian, Hindu, Parsi and others (15%)
National holidays / : February 25
Religious holidays / : Ramadan, Id al Fitr (end of Ramadan), Id al-Adha (Feast of the Sacrifice). Dates vary according to the lunar calendar

Institutional and Political Information

Political system / : Constitutional Monarchy
Legal system / : Civil law system with Islamic (Shari'a) law significant in personal matters.
National government / : Unicameral national assembly (Majlis al-Umma) of 50 members elected by popular vote to serve 4-year terms.
Head of state / : His Excellency Amir Jabir al-Ahmad al-Jabir al-Sabah
Head of government / : Prime Minister and Crown Prince Saad Abdullah al-Salem al- Sabah
Last elections / : 1999
Next elections / : 2003
Suffrage / : Adult males who have been naturalized for 30 years or more or have resided in Kuwait since before 1920 and their male descendants over the age of 21.
Main political parties / : No political parties are allowed, although informal groupings exist.

Main Affiliations With International Organizations

African Development Bank (ADB), Arab Fund for Economic and Social Development (AFESD), League of Arab States, Arab Monetary Fund (AMF), Council of Arab Economic Unity (CAEU), Economic and Social Commission for Western Asia (ESCWA), Food and Agriculture Organization (FAO), G-77, Gulf Cooperation Council (GCC), Organization of the Islamic Conference (OIC), Council of Arab Unity, International Atomic Energy Agency (IAEA), International Bank for Reconstruction and Development (IBRD), International Civil Aviation Organization (ICAO),International Fund for Agricultural Development (IFAD),International Labour Organization (ILO), International Monetary Fund (IMF), International Maritime Organization (IMO), Inmarsat, Intelsat, Interpol, International Telecommunications Union (ITU), Organization of Arab Petroleum Exporting Countries (OAPEC), Organization of Petroleum Exporting Countries (OPEC), United Nations, United Nations Educational, Scientific and Cultural Organization (UNESCO), United Nations Industrial Development Organization (UNIDO), Universal Postal Union (UPU), World Federation of Trade Unions (WFTU), World Health Organization (WHO), World Meteorological Organization (WMO), World Trade Organization (WTO)

Economic Information

Gross domestic product (GDP) / : $US 30.9 billion (2001 est.)
GDP structure / : Agriculture 0.3%, Industry 60%, Services 39.7 %
GDP growth / : 4% (2001 est.)
Inflation / : 2.7 % (2001 est.)
Foreign debt / : $US 6.9 billion (2000 est.)
National currency / : Kuwaiti Dinar (KWD)
Exchange rate / : $1 CAD= 0.194 KWD(2002)
Unemployment rate / : 1.8 % (official 1996 estimate)
Natural resources / : Petroleum, fish, shrimp, natural gas
Agricultural production / : Practically no crops, fish
Main industries / : Petroleum, petrochemicals, desalination, food processing, construction materials, salt

Trade Information

Exports / : $US 16.2 billion (2001 est.)
Imports / : $US 7.4 billion (2001 est.)
Main exports / : Petroleum oil and refined products, fertilizers
Main imports / : Industrial goods, consumer goods, machinery, transport equipment, food, construction materials, clothing
Main partners for export / : Japan, United States, South Korea, Singapore, Netherlands, Pakistan
Main partners for import / : United States, Japan, United Kingdom, Germany, China
TRADE BETWEEN CANADA AND KUWAIT
- in thousands CAD$ -
1995 / 1996 / 1997 / 1998 / 1999 / 2000 / 2001
Exports / 64 836 / 77 672 / 55 431 / 65 869 / 38 328 / 42 803 / 59 699
Imports / 35 / 208 / 1 971 / 2 607 / 3 096 / 865 / 18 864
Main Canadian exports: / : Passenger motor vehicles and parts, lumber, transmission apparatus, carpets, computers and components, motor boats
Main Canadian imports: / : Women's and men's overcoats, various women's garments, track suits, swimwear, ski suits, jewellery

Development Indicators

Population / : 2 111 561 ( 2002 est.)
Population growth / : 3.33 %
Fertility rate / : 3.14 children born/woman
Infant mortality rate / : 10.87 deaths/ 1000 live births
Life expectancy / : 76.46 years
Literacy Rate / : 78.6 %
Human development index / : 45th out of 173 countries worldwide (2002)
HIV/AIDS - people living with the disease / : n/a
HIV/AIDS - deaths / : n/a

Infrastructure And Communications

Airports / : 7 airports (3 with paved runways)
Railway / : none
Roadways / : 4450 km
Main ports / : Ash Shu'aybah, Ash Shuwaykh, Kuwait, Mina'‘Abd Allah, Mina' al Ahmadi, Mina' Su'ud
Gas pipelines / : Natural gas 165 km
Oil pipelines / : Crude oil 877 km, petroleum products 40 km.

Oman

OMAN

Background

In 1970, QABOOS bin Said Al Said ousted his father and has ruled as sultan ever since. His extensive modernization program has opened the country to the outside world and has preserved a long-standing political and military relationship with the UK. Oman's moderate, independent foreign policy has sought to maintain good relations with all Middle Eastern countries.

Geographic and Cultural Information

Official name / : Sultanate of Oman
Location / : Middle East, bordering the Arabian Sea, the Gulf of Oman and the Persian Gulf, between Yemen, the United Arab Emirates and Saudi Arabia
Capital / : Muscat
Population / : 2 622 198 (2001 est)
Climate / : dry desert; hot, humid along coast; hot, dry interior. Strong south west summer monsoon (May-Sept.) in far south.
Area / : 212 457 sq km
Languages / : Arabic (official), English, Baluchi, Urdu
Religions / : Ibadhi, Sunni and Shi'a Muslims (90%), other (10%)
National holidays / : November 18 (National day, birthday of Sultan Quaboos)
Religious holidays / : Id al-Adha (Feast of the Sacrifice), Muharram (Islamic New Year), Mouloud (Birth of the Prophet), Leilat al-Meiraj (Ascension of the Prophet), Start of Ramadan, Id al-Fitr (end of Ramadan). Dates vary according to Islamic lunar calendar.

Institutional and Political Information

Political system / : Monarchy
Legal system / : Islamic law (Shari'a) and English Common Law, ultimate appeal to the Monarch
National government / : Bicameral, an upper chamber or Majlis al-Dawla (48 seats appointed by the monarch) and a lower chamber or Majlis al-Shura (83 seats, members elected by limited suffrage)
Head of state / : His Majesty Sultan Qaboos Bin Said al Said, the monarch is both chief of state and head of government (since 1970)
Head of government / : -
Last elections / : September 2000 (indirect)
Next elections / : September 2003
Suffrage / : In elections of 2000, approximately 175 000 Omanis were chosen by the government to vote for the Majlis al Shura
Main political parties / : None

Main Affiliations With International Organizations

Arab Fund for Economic and Social Development (AFESD), Arab Monetary Fund (AMF), Gulf Co-operation Council (GCC), United Nations (UN), Economic and Social Commission for Western Asia (ESCWA), United Nations Food and Agriculture Organisation (FAO), International Atomic Energy Authority (IAEA), International Bank for Reconstruction and Development (IBRD), International Civil Aviation Organisation (ICAO), International Fund for Agricultural Development (IFAD), International Labour Organisation (ILO), International Maritime Organisation (IMO), International Monetary Fund (IMF),International Telecommunication Union (ITU), United Nations Educational, Scientific and Cultural Organisation (UNESCO), United Nations Industrial Development Organisation (UNIDO), Universal Postal Union (UPU),World Health Organisation (WHO),World Intellectual Property Organisation (WIPO),World Meteorological Organisation (WMO),World Trade Organization (WTO)