GCC Puts Oil and Gas Exports at $18.3tn

The head of Dubai International Financial Centre (DIFC) while addressing the second day of the MENASA (Middle East, North Africa and South Asia) Forum in Dubai said with the presumption of average oil price at $50, the current value of the GCC's energy exports is estimated at $18.3tn. Governor Ahmed Humaid Al Tayer who is heading the DIFC since last November also said that if the oil price rose to $100, the energy exports would hit $37.7tn, equivalent to the world's total stock market value at the end of 2008.

Al Tayer's projection comes after global cues such as growth in the US, European, Chinese and Indian economies driving demand for crude and related products.

It should be recalled, last week at an international conference on petrochemicals Mukesh Ambani, the oil baron said crude prices could rise to $100 a barrel in the near future.

Under the theme of 'Finance for the Next Decade of Growth', the two-day MENASA Forum, held between 23 and 24 May 2010, widely focused on discussing the critical opportunities and challenges confronting the region over the next decade. Over 250 members of the regional and international banking and financial services industry, regulators and senior business executives attended the Forum hosted by the DIFC.

Earlier, Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee and Chairman of the Emirates Group delivered the key note address on the first day of the Forum. He told that the platform was a great occasion for discussing how the MENASA countries could forge greater integration in trade, investment and finance, and stressed at setting up of a mechanism for cooperation similar to that of the ASEAN.

Arif Masood Naqvi, Founder and Group CEO, Abraaj Capital observed the MENASA region remained as the heart of the emerging markets, helping drive global growth through the combination of population growth, economic reform and hydrocarbon wealth. Likewise, Al Tayer said the vast potential of the MENASA region was "undeniable" despite the challenges being faced in the post-global downturn environment.

By Jose Roy