In Yemen, improved economic policies and enhanced cooperation with the international banks have produced remarkable progress. In addition, more than 100 Israeli firms are now listed on the New York Stock Exchange. Jordan has removed all remaining foreign exchange controls, lifted restrictions on foreign investment and announced the partial privatization of the phone company. And Kuwait has sold equity shares in more than 20 state-owned firms since 1994. Overall, regional economic growth is up for the second consecutive year.
Inflation is under control, fiscal policies are sound and debt loads are manageable.
All this is encouraging, but this region remains far from what it could be. Overall growth continues to be held back by a combination of rapid population growth, lack of diversification, continued state ownership and lingering protectionism. The journey to reform has begun, but there are many, many kilometers still to go. In the West Bank and Gaza, the economy faces a different obstacle and its condition is dire. Due largely to the impact of security-related closures, economic trends have turned sharply negative.