Exports grew from Middle East, Russia and Africa in 2017 says WTO

WTO director general Roberto Azevedo warned that “a cycle of retaliation is the last thing the world economy needs.” Reuters
Updated 12 April 2018
0

Exports grew from Middle East, Russia and Africa in 2017 says WTO

  • Stable demand for oil and other commodities lifts exports 2.3%
  • “A cycle of retaliation is the last thing the world economy needs,” warns WTO director general

The Middle East, Africa, and Russia saw steady export growth of 2.3 percent in volume terms last year on the back of stable demand in quantity terms for oil and other natural resources, according to the latest report by the World Trade Organization.
Imports generated by the combined regions increased slightly by 0.9 percent partly as a result of higher primary commodity prices, “which raise export revenue in resource exporting countries and allow more imports to be purchased,” the WTO said.
Energy prices have more than doubled since January 2016, but even at around $70 per barrel oil prices “still remain below the $100 level that prevailed before the middle of 2014,” the organization noted.
World trade in global goods is expected to maintain its robust recovery since the global financial crisis, but might falter if trade tensions between China and US escalate further.
Trade in goods was forecast to grow 4.4 percent this year after a decade averaging 3 percent a year following the crisis. Last year it grew 4.7 percent — much higher than the 3.6 percent forecast in September — and a further 4 percent rise is expected in 2019, the WTO said.
“However, this important progress could be quickly undermined if governments resort to restrictive trade policies, especially in a tit-for-tat process that could lead to an unmanageable escalation,” WTO Director-General Roberto Azevedo said in a statement. “A cycle of retaliation is the last thing the world economy needs.”
The United States and China have threatened each other with tens of billions of dollars’ worth of tariffs in recent weeks, leading to worries that Washington and Beijing may engage in an all-out trade war.
The WTO’s 2018 forecast puts world trade growth at the top end of previous expectations, since the organization said last September that it expected 2018 growth of 1.4 to 4.4 percent.
The latest forecast raises that to 3.1 to 5.5 percent based on current GDP forecasts, but “a continued escalation of trade restrictive policies could lead to a significantly lower figure,” the WTO said.
“These forecasts do not, and I repeat, they do not factor in the possibility of a dramatic escalation of trade restrictions,” Azevedo told a news conference.
“It is not possible to accurately map out the effects of a major escalation, but clearly they could be serious,” he said. “Poorer countries would stand to lose the most.”


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
0

Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.