Thursday 13 January 2011

How rising oil prices should speed up economic recovery in the GCC « ArabianMoney

Oil prices are at a two-year high and heading back to $100 a barrel rather sooner than most forecasters penned just a couple of weeks ago. For the Gulf States still reeling from the impact of the financial crisis two years ago, which burst a real estate boom and left banks nursing huge debts, this is clearly good news.

However, much depends on how the oil money is spent on whether it actually speeds up recovery at home or even impedes it. For such liquidity will only boost local economies if it is invested locally.

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