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Dr. Amin El Kholy Benedicte Gravrand, Opalesque Geneva: The markets of the Gulf stand to do well with a strong dollar peg and ongoing significant government spending and investment domestically. There has been legitimate concern recently about the rapid drop in oil prices. However, given a decade of accumulated reserves from twin surpluses, the governments can afford to run at a slight deficit, if that becomes necessary, for a few more years. This maintains a favourable environment for both public equities and infrastructure investments.
The Gulf Region includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.
When asked about their predictions for oil prices in the next five years, the participants at the recent Opalesque 2014 Roundtable agreed that was moot.
Over the past three months, global oil production has been outrunning consumption, according to the Washington Post. The price of OPEC’s mix of crude oil has tumbled $32, or 30%, to the lowest level since 2012.
"That type of prediction has eluded many in the past," commented Dr. Amin El Kholy, who works at Arqaam Capital, a full-service investment bank focusing on frontier and emerging markets. "I think the investment thesis for the Gulf for the next f...................... To view our full article Click here
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