The Gulf Cooperation Council economies constitute about 2% of the world’s gross domestic product (GDP), a leading economist said in a statement.
Dr Saeed Al Sheikh, economist Al Ahli Bank, told Akhbar Al Khaleej that the GCC nations possess 30% of the world’s gas reserves and 40% of the world’s oil reserves.
He asserted that global and regional economic and security conditions make it imperative for countries of the Gulf region to surmount formalities such as bickering about hosting of the Gulf Union’s head offices.
Commenting on a recent report on Saudi banking which said the kingdom’s economy will grow 3.9% this year and 4.4% next year, the Gulf economist said he expected the average price of oil to be at $105 per barrel. He added that oil prices are expected to be moderate during the next half of this year despite hovering around $118 per barrel in the first half.
Dr Al Sheikh said that the Saudi oil production is expected to reach 9.4 million barrels per day during the current year in contrast with last year’s 9.2m barrels per day. He also expected positive growth in the non-oil private sector.