Emirates Business 24/7 reported that strong oil prices boosted the combined income of Gulf hydrocarbon producers by a whopping USD 182 billion in 2011 and the increase allowed them to nearly triple their fiscal surplus.
The study by Qatar National Bank showed that from around USD 425 billion in 2010, the collective oil revenue of the six nation Gulf Cooperation Council surged to USD 607 billion in 2010. The increase sharply widened their fiscal surplus to about $138 billion in 2011 from USD 43.6 billion in 2010.
The balance sharply expanded despite an increase in actual public spending from around USD 382 billion to USD 468 billion. The 2011 surplus was the second largest positive balance recorded by the 31 year old economic defence and political Gulf alliance after the record surplus of nearly USD 229 billion in 2008. The massive increase in their revenue was a result of a sharp rise in oil prices to a record high average of about USD 109 per barrel in 2011 from USD 78.7 in 2010.
The report expected the surplus to plunge to nearly USD 52 billion in 2012 because of an expected decline in oil export earnings to around USD 563 billion and an increase in actual expenditure to nearly USD 511 billion. It projected the surplus to rebound slightly to around USD 57 billion in 2013.
QNB gave no breakdown for the 2011 surplus but official data showed Saudi Arabia, the world’s oil powerhouse, recorded the largest positive fiscal balance of around SAR 306 billion. It was much higher than the SAR 97 billion surplus achieved in 2010 and in contrast with the 2009 deficit of SAR 87 billion. In the UAE, IMF figures showed the fiscal balance reverted to a surplus of AED 38.5 billion last year from an actual shortfall of AED 22.9 billion in 2010.
QNB figures showed that higher oil prices expanded the GCC’s combined GDP by 28.1% to USD 1,383 billion in current prices last year from around USD 1,080 billion in 2010. It expected GDP to edge up to about USD 1,392 billion in 2012 and gain more than USD 100 billion to reach a record USD 1,495 billion in 2013.
Source - Emirates Business 24/7.com
(www.steelguru.com)
