In the latest report released by the IMF (International Monetary Fund) the document states, while the global financial market meltdown has had little effects on the Middle East region, it is still responsible for complicated policymaking caused by the depreciation of the U.S dollar.

While regional growth received a strong 5.8 percent in 2007, increases in oil productions have been limited in the oil producing countries. The strong expansion of credit to the private sector as well as increased spending by Middle Eastern governments is made possible right now with high oil prices.

This has resulted in a strong growth of the local economy, especially in countries like Egypt who reported a 7 percent increase over the year of 2007.

One shadow that taints this positive picture is the ever growing demand on the domestic factor. Rising food prices and rent increases put pressure onto inflation.

This is partially a direct result of expatriate workers who have bought investment properties in the GCC (Gulf Cooperation Council) countries like crazy in recent years, causing a massive shortcut of housing and therefore driving up the cost of rent.

While the short term outlook remains positive in the region, future growth is projected to rise by 6 percent in both 2008 and 2009.

The pressures of inflation is expected to cease as many new developments are completed, creating plenty of new housing opportunities, especially in Qatar and the UAE.

One factor that has a great influence on the future outlook is the fact that the currencies of the GCC countries are pegged to the U.S dollar (with the exception of Kuwait). This adds additional strain onto the domestic market which in turn will affect inflation.

This is stimuli enough for policymakers to increase local economies via vibrant privacy sectors, helping to generate new jobs for the growing population.

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