Business | Oil & Gas
Gulf countries to earn $1b surplus a day from oil
Gulf countries are likely to earn export surplus of $1 billion (about Dh3.67 billion) a day if the oil prices remain above $135 (about Dh496) a barrel, according Global banking major Merrill Lynch.
- By Babu Das Augustine, Banking Editor
- Published: 00:08 July 14, 2008
Dubai: Gulf countries are likely to earn export surplus of $1 billion (about Dh3.67 billion) a day if the oil prices remain above $135 (about Dh496) a barrel, according Global banking major Merrill Lynch.
Analysts estimate that a $10 (about Dh37) increase in the oil price could boost GCC export revenues by $55 billion (about Dh202 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 per cent of GDP growth and 70 per cent of the $2 trillion (about Dh7.3 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.
lthough 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.
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