GCC invests $100bn in Arab states
Dammam, June 17, 2008
The GCC states have pumped more than $100 billion in investment into other Arab states, according to a report.
Strong oil prices have also sharply boosted the fiscal surplus of the GCC states and are expected to push up their economies by more than 27 per cent this year to a record $1 trillion, the Emirates Business report said quoting a study by the Dammam-based Federation of GCC Chambers of Commerce and Industry.
The report noted that continued economic boom means the six countries, which pump around 16 million barrels per day of crude oil, would remain under heavy inflationary pressure, adding that the problem is complicated by the peg between the currencies of most member states and the ailing US dollar.
It forecast average oil prices would hit a record $95 this year after soaring to nearly $140 a barrel early this month and said the surge would push the combined GCC current account surplus above 31 per cent of GDP.