MENA

 

MENA consists of a group of countries – Algeria, Bahrain, Egypt, Israel, Jordan, Kuwait, Libya, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, UAE, and Yemen.

The World Bank reports – 

Over the last three decades, Middle East and North Africa (MENA) countries have witnessed the slow unraveling of the old social contract, where a dominant public sector offered jobs, social services, and security—but at the same time protected a privileged business class. The brutal upheavals of a decade ago across the region sealed the end of that tired compact. 

 

 

 

 

There is no precise listing for the MENA countries, but the GDP per capita is listed at about 8K USD on average. This is weighted down by some poorer figures and some MENA countries are far richer.

Bahrain, Saudi Arabia, Israel, Kuwait, Qatar, and UAE all have far higher GDP per capita figures than the others with Qatar being at 63K per person at the World Bank. Many sources place Qatar as far higher and the highest in the world.

Three MENA countries are in the top ten of GDP per capita countries in the world. 

 

World Bank

Digitization

Just as incomes vary widly across the MENA region, so do levels of digitization. 

Saudi Arabia has especially been involved with exchange work with MAS and Thailand which involves CBDCs.

Many of the currencies are pegged to the USD. When the Fed introduces a CBDC for the e-dollar, then Arab countries will be able to implement CBDCs more easily.

Digitization

Digital Transformation is a dominant theme in the Arab world especially to promote financial inclusion. 

A webinar shows numerous protagnists talking about digital transformation including a statement about the need to embrace private enterprise. 

Cross-Border 

China is the top exporter and importer for the MENA region. 

China has been pushing digitization very hard and it looks likely that interoperability matters would work with MENA trade for China’s CBDC.

China’s investment has been growing especially in Saudi Arabia.

Diversification

The economies in the wealthier MENA countries is oil dependent. The G20 recommends diversification into non-oil sectors and this will need legal changes especially addressing FDI (foreign direct investment).

The G20 describe “tunnel vision” in oil dependent MENA nations and the need to change.

 

 

 

Economic Outlook

The IMF reported on the outlook and stated – “A new social contract should be put in place
with more private sector jobs, and enhanced
governance, transparency, and accountability
for governments. “

IMF Report

 

 

 

By cryptorocks_editor

Editor.