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Gulf GDP to widen 5.8pc despite slump in oil prices

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Press Trust of India Dubai
Last Updated : Jan 24 2013 | 2:11 AM IST

Qatar will lead growth in the region with around 8.7 per cent, while growth will be about six per cent each in Saudi Arabia and Kuwait, 4.5 per cent in the UAE, 4.2 per cent in Oman and 3.1 per cent in Bahrain, the report by Kuwait-based Gulf Investment Company (GIC) said.

It added that the recent decline in oil prices will not affect the economies of Gulf hydrocarbon exporters given the high public spending and reforms being implemented by most members.

"Despite speculation about a further oil price decline, the GCC economies are still expanding as they are based on real growth pillars," it said.

"The first and most important pillar is the high public spending in most member states as it accounts for nearly 35 per cent of GDP... This is coupled with the implementation of massive projects worth nearly USD 1.1 trillion, almost a quarter of the world's investment in infrastructure and energy," it explained.

The report showed Saudi Arabia and Qatar would account for the bulk of those projects which cover oil, gas, electricity and construction.

  

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First Published: Jul 11 2012 | 12:05 PM IST

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