Gulf region recovers from global economic crisis

The economic crisis in the Gulf states is over and the region has not experienced any systemic risks, according to Mr Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC) and also Vice chairman of the U.A.E. Central Bank. At a conference in Dubai, Mr. Bin Sulaiman said that the Gulf region has successfully survived the worst of the global economic crisis without experiencing any systemic risks. Mentioning a study done by the DIFC Authority's economic unit, Mr. Bin Sulaiman said that the present value of oil reserves belonging to the six Gulf Cooperation Council (GCC) countries stands at $18.3 trillion and if the price of oil reaches an average of $100 a barrel and the price of gas hit $9, this will lead to revenues of $37.7 trillion, equal to the world's total stock market capitalisation. This sentiment was also shared by other analysts as a recent report by the Bank of America-Merrill Lynch indicated that the improvement in the global economy, higher oil prices and recovering credit market have all acted in favour of the GCC recovery. Merrill Lynch considers the UAE and Saudi Arabia as the two countries to benefit most from a global recovery, while Egypt is expected to face some stumbling blocks due to higher commodity prices that could affect the country's fiscal balance and inflation. The report also noted that Egypt and Lebanon have enjoyed strong performance. Merrill Lynch sees the oil price averaging $ 75 per barrel next year as against breakeven price of $ 65 per barrel. This means that the GCC will start saving again in 2010.Nike Kyrie 5