The year in Gulf country GDP

The GCC unsurprisingly remains on top of the region's economic growth. The Institute of International Finance (IIF) 2013 "Regional Overview on the Middle East and North Africa" noted that the gap between oil-exporting and oil-importing countries had widened even further in the wake of continued political turmoil, with the GDP of oil exporters rising from four times that of the oil-importing countries in 2010 to nearly five times in 2013. Saudi Arabia's GDP, the largest in the region, is now nearly three times that of Egypt. Analysts do not see this changing anytime soon, with continued instability in countries such as Syria and Egypt prompting a downward spiral for their neighbors and contributing to the image of the Gulf as a safe haven for business.

However the regional turmoil could still be reflected in overall market prices. A recent study by SEI Investment Company notes that geopolitical concerns, along with running speculation that the decade-long commodity "super-cycle" is winding down, are reason to remain hesitant on MENA markets.

And regardless of oil imports and exports, most Middle East countries still demonstrate a lack of diversified markets and globally competitive companies. The Kingdom of Saudi Arabia has exhibited awareness of this flaw, as they have announced numerous initiatives this year to promote alternative energy. The oil industry alone currently accounts for 45 percent of the KSA's GDP, a share that has recently been scrutinized with the United States' shale gas boom and its threat to KSA dominancy in energy.

Nevertheless, sustained oil prices have allowed the majority of the GCC countries to steadily grow financial surpluses[SO1] . As a result, IIF and other experts predict a sharp GDP growth for the Gulf of 3.2 and 3.9 percent over the next two years, as opposed to 2.4 percent growth in non-oil countries following a relatively meager 1.8 percent in 2013. Total net foreign assets for oil-exporting countries will rise to USD2.5 trillion by the end of this year, equivalent to 99 percent of their aggregate GDP, reports IIF. Conversely, oil-importers' reserves will account for 28 percent of total GDP this year.

The outlook into the next year remains strong for Saudi, with an estimated 4.5 percent overall growth and a robust 5.2 percent growth rate in non-hydrocarbon alone.

Monetary policy is seen as beneficial to economic robustness, as the country has been among the first to implement Basel III standards and is actively pursuing policies to develop the financial sector. The IIF notes that banks could potentially adopt more conservative lending policies in the next year following strong credit growth in the two years prior.

Challenges for Saudi in the coming year remain the development of the local labor force and the diversification of revenue. As IIF notes, "although Saudi Arabia has accumulated large foreign assets to withstand a short-run oil price volatility, a sustained drop in oil prices remains a risk" while growth in other industries remains fairly low.

The Kingdom recently deported 60,000 illegal workers in a crackdown on illegal employment that led one million undocumented expatriates to leave the country in the prior six-month amnesty. The resulting sweep has left a labour gap that the government hopes to fill with Saudi nationals, though the impact is still playing out, primarily in the construction sector.

United Arab Emirates: real estate rise

As the second-largest Arab economy and a center for international business, the UAE has perhaps benefitted most from its portrayal as a 'safe haven' amidst regional instability. The country is on quick rise following the quiet years of the financial crisis, as reflected in the UAE's most telltale market, real estate. Nike Jordan Melo Shoes