The economic fundamentals of the region are generally better than those of the rest of the world. The GCC countries have a combined population of 35 million and are cushioned by US$1.2 trillion (Dh4.4tn) of foreign assets, making it possible for their governments to implement expansionary fiscal policies. However, those GCC countries which are more integrated into the global economy, and whose financial systems have high loan-to-deposit ratios, are affected more than others (UAE and Kuwait more than Saudi Arabia). The myth that the region is decoupled from the rest of the world has been shattered. Not only is it not decoupled, but the region is very much influenced by what happens elsewhere.
Prices of the region’s main exports, such as oil, petrochemicals and minerals, are determined by world markets. The fact that the Gulf currencies have been pegged to the US dollar since the mid-1980s means that the exchange rate and domestic interest rates are also determined mainly by factors beyond our control. But above all, the region is an active participant in world financial markets. It is estimated that the private sectors of the region own US$1.8tn worth of foreign assets. The fear and panic that has hit the world has affected us. If our portfolio abroad suffers we tend to reduce our exposure to our regional stock markets.
We are forecasting an average oil price of US$40 a barrel this year. This is also believed to be the price per barrel assumed in the Saudi budget for the year. Oil prices may well drop below $30 if the US dollar strengthens against the euro, say to its purchasing power parity of $1.18, and there is a greater than expected slowdown in emerging countries, especially China which will grow at 3 per cent instead of the assumed 8 per cent.
Hello,
ReplyDeleteplease remove all the "copy and paste" posts from your blog.
Thank you for respecting the intellectual property rights of many!
@ anonymous 12:46pm
ReplyDeleteThank you for visiting and leaving your comment.
This is from my profile, at base of page:
"This blog will post articles from GCC and International newspapers relating to my areas of interest."
Indeed, I do respect "the intellectual property rights of many" as each entry is labelled with source publication.
If you wish to discuss confidentially, then please email me at: rupertbu@eim.ae
Dear Rupert,
ReplyDeleteto republish texts and articles from official media you should obtain permissions and pay fees.
Otherwise, you are simply getting advantage and generating traffic thanks to others' hard work.
If you wish to point out particular article or source of information, you could post a link to it and summarize the content in your own words.
Thank you!
This really is not how I prefer to communicate, but you have chosen not to take up my email suggestion.
ReplyDeleteAnyway here is a link http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/03-27-2009/0004996200&EDATE=
which was not covered by any of the GCC newspapers today.
On the top line you will see a variety of navigation options and, to save you time, here is the result:
http://blogsearch.google.com/blogsearch?hl=en&q=Boeing%2C+Dubai+Aerospace+Enterprise+Capital+Deliver+First+Emirates+SkyCargo+777+Freighter&btnG=Search+Blogs
All of the headlines in my blog take the viewer to original article.
My blog is targetted at individuals and institutions that have an interest in GCC, but may not have the resources to access all stories that I do. (I should point out all stories have similar navigation options, as you will have seen on the Boeing site.)
Thank you for visiting.