A new report just released by the Credit Agricole Corporate & Investment Bank states that Saudi Arabia’s macro economy is currently the most progressive within the Gulf region.
In 2008 Saudi Arabia decided to invest $400 billion dollars in an effort to stimulate their economy. This was seen as the largest investment package among the twenty countries that comprise the G20 nations. Although the country did show a small deficit at the end of 2009 this has continued to decline stealthily since 2002.
Oil prices remain favourable to the regions future development plans and the report indicates that once they remain within the $70 per barrel range this will be sufficient to stimulate the economies within the Gulf region. The biggest hindrance to the regions future potential at present is the sluggishness within the Banking sector and more specifically their cautiousness to lend investment capital. This can still be largely attributed to the uncertainty caused by the Dubai World situation and other non-performing loans still on their balance sheets.
The report goes on to say that the UAE Economy is recovering more slowly because of the downturn in the real estate sector, Dubai World’s debt and less than expected domestic demand. Qatar is predicted to be the world’s fastest growing economy in 2010 largely due to its natural gas reserves. Kuwait plans to invest heavily in diversifying its industry base this year and Bahrain is predicted to grow also due to its expanding tourism plans and increased investments.Paul Holdsworth, Staff Writer, Gulf Jobs Market News