IMF sees Gulf recovery next year

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The Arab Gulf states are heading for a sharp economic slowdown but next year some are likely to bounce back to growth levels approaching the pre-crisis era, the IMF said on Sunday.

Saudi Arabia, the region’s largest economy, is likely to see its economy contract 0.9 per cent this year, before rebounding back to positive growth of 4 per cent in 2010 on rising oil prices. Growth rates in Qatar, the tiny gas-rich peninsula, are likely to decline from 16.4 per cent last year to 11.5 per cent this year, before roaring back to 18.5 per cent in 2010 as swelling gas exports kick in, the Fund said.

But some Gulf Cooperation Council states, notably Kuwait and the United Arab Emirates, are likely to benefit from only modest economic recovery next year.