Another economic boom for Arabia while the world faces stagflation? « ArabianMoney

Sitting back to take the long view this summer Arabian business can sense something is changing. Basically a tsunami of cash from recent high oil prices is beginning to crank up local economies whose real estate booms crashed so badly in the global financial crisis.

The impact is most clear in the largest regional economy, Saudi Arabia, which also experienced the least of the real estate bust. The National Bank of Kuwait forecasts record oil revenues of $267 billion for the kingdom this year and 6.9 per cent GDP growth.

Both oil output and oil prices are up. The Arab uprisings have helped, with the kingdom boosting production to offset the loss of Libyan oil. And Brent crude prices have remained stubbornly north of $100.

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