Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Net GCC foreign assets set to hit $2.3t at end-2014: IIF  Join our daily free Newsletter

MENAFN - Khaleej Times - 17/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) With relatively little external debt net foreign assets of gcc countries are projected rise to 2.

the uae is projected to see a rise in average inflation from 1.1 per cent to 2.8 per cent. — kt file photo

the washington-based global association of financial institutions said the region’s gross financial assets are also on course to rise to 2.8 trillion by year-end as a result of continued large surpluses.

however the iif warned that the gcc countries’ fiscal stress could surge over the medium term if oil prices drop sharply while government spending continues to rise.

“assuming an average brent oil price of 105 per barrel in 2014 [as compared to 108 per barrel in 2013] the gcc’s external current account surplus while declining is expected to remain large at 287 billion in 2014. the consolidated fiscal surplus will also narrow from 10.6 per cent of the gross domestic product in 2013 to 8.3 per cent in 2014 reflecting slightly lower oil prices and higher expenditures” it said in its regional overview.

this year overall growth of the gcc is projected to be around four per cent as oil production remains restrained due to increased global supplies and tepid growth in demand the iif said. growth moderated from 5.5 per cent in 2012 to 4.2 per cent in 2013 largely due to a slower rise in crude oil production. non-hydrocarbon real gdp growth a more representative measure of economic activity remained robust at 5.4 per cent in 2013 driven by higher public spending and stronger private sector activity.

the iif in its review showed gcc countries to make further progress in economic diversification.

“although hydrocarbon sector’s contribution to gdp has declined steadily the budget dependence on oil revenues continues to be high” said george abed senior counsellor and director for africa and the middle east at the iif.

gcc private sector growth is projected to rise further to 6.2 per cent in 2014 from 5.9 per cent in 2013 supported by buoyant domestic demand and both private consumption and investment expenditures. government-sector growth is projected to slow to 3.5 per cent in 2014 from five per cent in 2013 as authorities across the gcc move to begin to rein in expenditure growth which had been resurgent for nearly a decade.

economic diversification in the gcc the iif noted continues as signalled by the steady decline in the share of the hydrocarbon sector’s contribution to real gdp from 41 per cent in 2000 to 33 per cent now. “however gcc countries have not done as well in diversifying their domestic revenue base as the oil and gas sector’s contribution to budget receipts remained high at 84 per cent on average in the last three years” it said.

inflation is projected to remain subdued at about three per cent in 2014 reflecting both the absence of global inflationary pressure and the openness of the economies. however in qatar and the uae some price pressures could emerge driven by a rapid increase in housing and related costs. the uae is projected to see a rise in average inflation from 1.1 per cent to 2.8 per cent as the property market recovers and the deflationary impact from rent declines is reversed.

in a recent forecast the international monetary fund had predicted gcc economic growth to be 4.4 per cent in 2014 as oil production rises and the non-oil sector benefits from the large infrastructure projects being implemented. however because of the volatility inherent in oil prices the imf expects downside pressures during 2014 as well as longer-term structural challenges. the imf has said that most gcc economies continue to have “substantial buffers” to cope with short-lived oil price shocks despite an expected drop in their current account surpluses.

the imf also had noted that most gcc countries have accumulated large official external assets and would be able to comfortably weather temporary declines in oil income. total public external assets in the gcc are estimated at nearly 2 trillion which could be used to make up for any shortfall in oil revenue.

— issacjohn?khaleejtimes.com


 






  MENA News Headlines
 Jul 22 2014 - Jihadists organise tours in their Syria, Iraq 'caliphate'AFP
(MENAFN - AFP) Known for kidnapping, public stonings, lashings and executions, the Islamic State (IS) is now expanding into tourism, taking jihadists on honeymoon and civilians to visit other parts ...

 Jul 22 2014 - UN in Syria vaccination drive against polioAFP
(MENAFN - AFP) The United Nations called for help Tuesday to vaccinate 765,000 young Syrian children against polio in a bid to prevent a resurgence of the crippling disease across the restive Middle ...

 Jul 22 2014 - Syria war causes $21.4 bn losses to oil industryAFP
(MENAFN - AFP) Syria's oil and gas industries have suffered total losses of $21.4 billion since the outbreak of the country's war three years ago, Oil Minister Suleiman Abbas said Tuesday. "The ...

 Jul 22 2014 - Five lose Kuwaiti citizenshipArab Times
(MENAFN - Arab Times) WAIT CITY July 21 (Agencies): Kuwait on Monday revoked the citizenship of the owner of a pro-opposition television station and a newspaper along with several other people in an ...

 Jul 22 2014 - Bahrain to cut hotels rates by 20 percentMENAFN
(MENAFN) The Ministry of Culture has launched a promotional program that is agreed upon from four and five-star hotels across Bahrain and will see them slash prices by 20 percent for citizens and ...

 Jul 22 2014 - Saudi Mobily profit falls 18.6 percent in Q2MENAFN
(MENAFN) Etihad Etisalat (Mobily), Saudi Arabia's No.2 telecom operator, dropped by 18.6 percent in net profit in the second quarter, matching analysts' forecasts, according to Arabian Business.The ...

 Jul 22 2014 - UAE's Sobha Group eyes USD4b for projectMENAFN
(MENAFN) UAE-based Indian developer Sobha Group is negotiating with major local and international banks to secure financing for its USD4 billion Sobha Hartland development in Dubai"s Mohammad Bin ...

 Jul 22 2014 - Marines sailors partner with task force in GabonMENAFN Press
(MENAFN Press) STUTTGART Germany July 22 2014/African Press Organization (APO)/ -- Marines and sailors from Special-Purpose Marine Air-Ground Task Force Africa 14 completed a partnership exercise in ...

 Jul 22 2014 - Abu Dhabi Airport builds facilities to increase passengersMENAFN
(MENAFN) As part of Abu Dhabi International Airport's plan to reach a record high in numbers of passengers, it has added a number of new facilities to its operations, according to Arabian ...

 Jul 22 2014 - UAE's Sheffield builds tallest tower in DubaiMENAFN
(MENAFN) UAE-based Sheffield Holdings Limited will build the second tallest tower in the UAE, and is now 80 percent completed, according to Arabian Business.The new tower, Marina 101, extends over ...

more...


 






Google

Live Currency Rates

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help