Alkhater said that many oil based economies in the region have their economic activities concentrated in the non-tradeable
sector such as services and construction relying on low skill imported labour with the majority of nationals employed in the public sector.
The company is replacing more expensive and non-tradeable
Kuwaiti supply with Iraqi oil.
In addition, on 13 September, markets regulator China Securities Regulatory Commission (CSRC) allowed banks to raise funds through non-tradeable
preferential stock allotments.
The draft already agreed upon includes Pakistan's assent, in principle, to grant the MFN status to India and a finalised negative list of non-tradeable
items, which will be phased out by the year's end.
By the end of 2006, non-tradeable
shares accounted for 63% of the total shares in the market But following the Gugai reform of 2005, the Chinese law allowed for state and provincially controlled non-tradeable
shares to become tradeable.
Interestingly, this leading role took place in the period where the incentive structure of the economy changed in favour of tradeable and production of the non-tradeable
was expected to have declined.
Low OSPs mean that everyone will maximise the non-tradeable
volumes and that the spot tradeable grades will suffer," said another trader with a western trading firm.
Industry policy can be revisited, ideally at the expense of non-tradeable
activity such as the finance sector rather than by transfer of resources from the more successful tradeable industries to the less.
Given that Gulf governments find it politically difficult to trim fiscal expenditure at a time of booming oil revenues and that monetary policy is heavily constrained, it is difficult to see how inflation will be effectively tamed without some upward adjustment in exchange rates," the report said, but observed that "a substantial portion" of inflation is being generated by non-tradeable
factors, particularly high property rents.
These 35 sectors are then grouped into two major categories: 18 tradeable and 17 non-tradeable
CPPs--mainly held by retail investors--offered at a fixed coupon rate, but are non-tradeable
in the secondary market.
The Country Land and Business Association (CLA) has argued that non-tradeable
farming outputs which benefit society - maintaining the countryside for example - provide a public good and should be paid for.