Middle East oil income will exceed Dh3.6tr

Dubai: Despite a nearly 50 per cent decline in oil prices from their July peak, the International Monetary Fund expects oil revenues of the Middle East and Central Asian countries to remain strong.

These countries' oil and gas exports will amount to an estimated Dh3.67 trillion ($1.1 trillion) this year, up from $700 billion in 2007. This is almost entirely due to high world oil prices, which - even after the recent correction - are expected to average about $107 a barrel in 2008, sharply higher than the $71 a barrel in 2007.

The IMF expects the value of the region's oil and gas exports could amount to $7 trillion over 2008-13 on a cumulative basis, compared with the already massive total of $2.4 trillion during 2003-07.

The region's fiscal revenues from oil and gas are projected at $5.6 trillion cumulatively during 2008-13, versus $1.8 trillion during 2003-07.

The accumulation of external assets during 2008-13, which is the counterpart to the region's projected cumulative current account surplus over the period, is expected to amount to $2.8 trillion.