Recent figures suggest that the downturn in the UAE’s real estate sector has bottomed out but we still hold concerns that increasing supply will exacerbate overcapacity and put further strain on banks’ balance sheets. Elsewhere, a recent severe COVID-19 outbreak in Tunisia prompted a strict week-long lockdown to slow the spread of infections and, amid a struggling vaccine rollout, a loss of tourism this summer will further delay the recovery and reinforce fears about the country’s large twin deficits. Finally, remittances into MENA grew last year and are likely to increase further over the coming years as recoveries get underway, although labour nationalisation programmes in the Gulf present a downside risk.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services