DUBAI: The Gulf states – including Saudi Arabia and the United Arab Emirates – will keep investments at their planned levels as long as oil remains above $50 per barrel, said EFG-Hermes Holding, Egypt’s largest investment bank.
The Gulf countries most vulnerable to a global economic slowdown are those with the most diversified economies – Oman and the United Arab Enirates, Monica Malik, an economist at EFG based in Dubai, said in a research note yesterday.
Brent crude, on which EFG’s calculations are based, has fallen 3.6% this year on fears of a slowdown in the global economy.
Yesterday, oil prices fell, briefly ducking below $90, on concerns that crude demand may be hit by fears of a US-led economic slowdown and fresh uncertainty on the equity markets, dealers said.
Traders are awaiting the outcome of an Opec meeting in Vienna on Friday
New York’s main contract, light sweet crude for delivery in March, lost 50¢ to $90.21 per barrel, having earlier dropped below the $90 level.
Brent North Sea crude for March dropped 10¢ to 90.80.
GCC members are planning an estimated $1.5tn in investment projects during the next five years, according to Meed Projects, a research company.
“A steep fall in the oil price would require a sharp downturn in Asia, which is not expected,” Malik said in the note.
“The oil price needs to remain above $50-55 for public finances to remain healthy and for governments to continue with medium term investments.” – Bloomberg, AFP |
