Gulf investors need a disconnect from oil’s trends | GulfNews.com:
"It is clear that the fall in oil prices has the potential to affect GCC economies significantly. Even the most diversified countries in the region still rely heavily on oil revenues as a source of public funds – the UAE has gone the farthest towards diversification, yet Dh6 out of every Dh10 received goes to fund public wages and benefits.
But the correction in prices should not come as a surprise. While it is partly the result of reduced demand, thanks to economic doldrums in some traditional markets, it is also partly down to increased supply and it will take some time for this new supply to dissipate.
It is true that in the past the performance of capital markets in the Middle East and North Africa was closely correlated to oil prices, and indeed GCC financial markets were highly affected following Opec’s decision last November to maintain its oil market share, rather than propping up prices."
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