Turkey attracted a new investment valued at USD 510 million by India's Aditya Birla Group, a USD 35 billion multinational company, to establish a viscose staple fiber plant in the southern province of Adana. Economy minister Mr Zafer Çaglayan, Investment Support and Promotion Agency of Turkey president Mr İlker Aycı and Aditya executive board member Mr KK Maheshwari met with reporters to announce the investment at a press conference in Istanbul. The world's largest VSF producer, Aditya expects to complete the construction of the plant in Adana's industrial zone in five years time before they commence an estimated annual production of 180,000 tonnes of VSF. The plant will export 20% of its annual production, which is estimated to contribute USD 100 million to Turkish exports per year while providing jobs for 550 people. The plant is the latest in a series of foreign investments to contribute to minimizing Turkey's current account deficit this year. The Turkish government earlier this year announced a strategy plan that envisages boosting domestic production in six specific sectors which have the highest imports, thus increasing the CAD and the textile sector is one of them. Mr Aycı said that they had been in talks with Aditya for the past two years and thanked the group for finally choosing to invest in Turkey among a few other options in the region. He earlier said the agency expects to announce two more prominent investments from Asia in Turkey before the end of this year but did not elaborate on details. Mr Çaglayan separately said that they expect to announce a new investment in the chemical industry, another high importer sector, in January. The second company to follow Aditya in Turkey would be Japanese bearing producer NTN Corporation. Delivering a speech at the meeting, Mr Çaglayan said that the plant could help cut Turkey's CAD by as much as USD 1 billion following its completion. Considering that Turkey's VSF demand will continue to increase we expect the amount of money allocated for this material will reach USD 750 million in five years time. This amount, plus an expected USD 100 million in exports, means we will initially save USD 850 million.
The total size of new foreign investments in Turkey this year with an aim of minimizing the country's CAD nears USD 9 billion. The most important of them was a USD 5 billion joint oil refinery investment between Azerbaijani state owned oil company SOCAR and Turkey's Turcas (SOCAR Turcas) in İzmir. A steel investment made by South Korea's POSCO in İzmit and another one by Russian Magnitogorsk Iron and Steel Works in Hatay, totaling USD 2.5 billion, along with a recent USD 1 billion carbon fiber investment by the American chemical corporation Dow Chemical Company are other examples of anti CAD investments successfully attracted by Turkey this year. Thanks to a number of sector specific incentives to be introduced in 2012, the government expects investments in this category will continue being made in the years to follow.

The Islamic Republic of Iran's steel production has witnessed an increase of about 10% during the first 11 months of 2011. According to a report by the World Steel Association, Iran's steel output has reached 11.953 million tonnes during January to November 2011, which shows a 9.7% YoY growth over the same period last year. The figure also shows an 18.3% hike in comparison with the number for the same period in 2009. According to WSA, Iran was the second leading steel producer in the Middle East in 2010 after Turkey. The major raw steel producers of Iran are the Mobarakeh Steel Mill, with approximately 47% of the market share, the Khuzestan Steel Company with about 23%, the Isfahan Foundry with about 20% and the Iran National Steel Industries Group with approximately 10% of the market share. Iran is among the 15 major mineral rich countries of the world and exports its industrial and mineral products to 159 countries, including Iraq, China, the United Arab Emirates, India and Afghanistan.

Qatar will invest as much as OMR 500 million in the Omani economy. The investment is part of a pledge by fellow Gulf Co operation Council members to provide USD 10 billion each in support to Bahrain and Oman following demonstrations in those countries earlier in 2011. Mr Khalil bin Abdullah al Khunji chairman of the Oman Chamber of Commerce and Industry said that "We expect other GCC countries to show similar initiative to invest in Oman." The GCC, led by Saudi Arabia, on March 10th 2011 announced USD 10 billion each in aid for both Oman and Bahrain, two of its six members. Protesters in the two countries, drawing inspiration from demonstrations that have unseated the rulers of Tunisia and Egypt this year, are demanding free elections as well as more housing and jobs. Oman's leader Mr Sultan Qaboos agreed in March 2011 to boost the powers of the nation's consultative council. The ruler also dissolved the Economy Ministry and named a new finance chief in a Cabinet reshuffle. Oman's government announced in April 2011 an OMR 1 billion plan to create jobs and raise pay, part of a strategy of increasing state spending to OMR 9.1 billion, after weeks of protests demanding economic changes. The economy of the Arabian Gulf sultanate will grow by 5% at constant prices in 2011. The country's debt is also forecast to amount to 6% of gross domestic product. At the same time, the budget deficit will rise to OMR 1.9 billion or 9.5% of GDP, while subsidies will cost OMR 954 million.

Dubai political and security issues may be playing out in the backdrop, but the prospects for immediate work offered by Iraq's construction activity have the UAE's contracting companies scouting for more. Mr Ali Ghaleb Jaber CEO of Ajman headquartered Tech Group said, "Certainly there are major projects in the pipeline; we will soon be announcing some we have been contracted which are in the finalization stages as we speak." He said that one of its subsidiaries, Piling Tech, has confirmed AED 36.7 million contract in Iraq and its first in the oil sector there. He added, "A majority of the new ones are for residential and commercial projects in Baghdad and southern Iraq." Seeking projects outside the UAE will be a common theme for the country's many contracting companies as well as those in ancillary services. Iraq is rated the brightest prospect despite the volatility in recent days as is Saudi Arabia, which is gearing up for a major spend on social housing projects as well as on infrastructure. In the kingdom's case, the newly unveiled budget surplus will prove an incentive like nothing else can. Some sort of a role, even a lead one at that, in the rebuilding efforts in Libya is not seen as a long shot by local contracting businesses. Mr Jaber is making sure his operations are fully geared to do their part. He said, "We are focusing on Libya as political turmoil is subsiding and stability is returning, while in Saudi Arabia we have a ready mix factory and will be expanding our presence." He said, "In Sudan, Piling Tech already has a branch which will oversee the execution of projects. A major share of our projects in 2012 is expected from outside the UAE compared to our regional project outlook; we do not see much activity in the UAE. Mr Jaber said, "Our target is to have 90% to 95% Iraqis in our manpower pool running the projects including at the civil engineering levels. This is because of the advantage Iraqis have in terms of their awareness of local culture, ground realities and the benefit of easier communication with our local suppliers." On the issue of security, Mr Jaber said emphatically, "We do not see any reason to take extra precautions because the projects we are involved in have no linkages to the politics of the country. We do not see any problems coming in the way of executing the projects we have been contracted for.”