Gulf countries to earn $1 bln surplus a day from oil
Gulf countries are likely to earn export surplus of $1 billion (about 3.67 billion dirham) a day if the oil prices remain above $135 (about 496 dirham) a barrel, according Global banking major Merrill Lynch.
Analysts estimate that a $10 increase in the oil price could boost GCC export revenues by $55 billion a year. The bank feels that despite the global financial turmoil the Gulf countries offer a safe haven for investments as their surplus from oil windfall mounts. The region’s non-oil growth accounts for 80% of GDP growth and 70% of the $2 trillion investments that target improvements in infrastructure.
According to Merrill, the fiscal prudence of Gulf states makes it a solid macro story, which cushions the storms in global markets and paints a bright medium-term picture. Although the oil surplus will boost liquidity in the short to medium term, it will also result in higher inflation combined with higher asset prices giving way for asset bubbles in the medium term, it said. (Gulfnews)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.