The Gulf countries tap into their windfall to get out of all-oil

The Gulf countries tap into their windfall to get out of all-oil

A golf course and the skyscrapers of Dubai Marina, which has become the largest marina in the Middle East, hosting 1,400 moorings for luxury yachts. DAVID CANNON/Getty Images via AFP

ANALYSIS – Saudi Arabia and the Emirates want to diversify their economy.

War in Ukraine coupled with an energy crisis… The Gulf countries, major suppliers of fossil fuels, are taking advantage of this unprecedented situation. In 2022, a barrel of Brent sold for an average of $100. Unheard of since 2008. Gas has approached the astronomical price of 240 euros per MWh in Europe. Suffice to say that these countries have amassed fortunes. In the third quarter of 2022, oil heavyweight Saudi Aramco earned $42 billion, helping Saudi GDP jump 8.6%. “The Gulf region, including Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait, earned quite exceptional revenues from hydrocarbons in 2022 and posted up to $100 billion in overall budget surpluses», Estimates Ano Kuhanathan, of Allianz Trade. This windfall should continue this year, with “5.5% to 6% budget surplus in 2023“, adds the economist while the price of brent could exceed 90 dollars a barrel

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