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While the UAE, Saudi Arabia and Egypt can ride the drop in oil prices, growth prospects of Algeria and Nigeria will be severely compromised, Frost & Sullivan has said.
The economic indicators of emerging Middle Eastern and African (MEA) countries for H2 2015 point to a mixed bag of possibilities and challenges. While growth in the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE) and Egypt will pick up pace, Algeria and Nigeria will continue to grapple with the decline in exports and depreciation in currency, says the Global Economic Tracker – Insights and Trends – Emerging Middle East and Africa Q2, 2015.
The KSA and the UAE will withstand the pressure of sinking oil prices owing to strong non-oil sector performance. High public spending on education, healthcare, transport and water infrastructure will spearhead the two economies, it said.
The expansionary Purchasing Managers’ Indices of both countries will brighten business and consumer sentiments throughout 2015. However, the depletion of Saudi Arabia’s foreign reserves will be a cause for concern in the last quarters of 2015.