Crude oil is one of the main market drivers across the world, and according to experts, its current rise could help the region recover faster from the financial crisis.
May 25, 2009 4:27 by Aarti Nagraj
With crude prices stabilizing above $50 a barrel, the Middle East economies are likely to pull out of the global financial crisis faster than the rest of the world, says a report in Bloomberg. Saudi Arabia has started attracting renewed interest from investors, it says adding that oil money accumulated between 2003 and 2008 is providing a cushion for the region against the slowdown.
“The expected resilience of oil prices puts the Gulf countries in a relatively privileged position compared to Europe and the US,” Eckart Woertz, an economist at the Gulf Research Center in Dubai told Bloomberg. “In 2010, that is likely to lead to some resumption of growth, unlike in developed-market economies.”
However, the International Monetary Fund (IMF) warned earlier this month that the economies of Middle East oil exporters are likely to suffer from a possible extended global slowdown because of decreasing oil demand.
“A major risk to the economic outlook is the possibility of a prolonged recession. This would keep oil demand and prices low,” it said.