Mena’s economic growth is fueled by rising energy prices.
The increased uncertainty caused by the Russia-Ukraine conflict, rising rates of interest and other factors has made it difficult for the global oil and gas market to remain resilient.
“Middle East producers, particularly those in the Gulf region have embarked upon ambitious plans to diversify themselves away from oil,” Ritu Singh, Regional Director at Stone X Group Inc, says. “These countries are using oil’s current high prices to reshape and reshape the economies of their economies and the region.”
An International Energy Agency report released earlier this month stated that global oil demand will rise by 2,000,000 barrels per day (bpd), to 101.9 bpd. Asia-Pacific, which is expected to see a growth of 1.6 million barrels per day, thanks to a resurgent China dominates the growth outlook.
Deloitte’s report showed that the global upstream sector is expected to record its highest ever free cash flow of $1.4 trillion by 2022.
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As long as oil prices are high, the International Monetary Fund (IMF), had previously projected that the Gulf economies would receive $1.4 trillion more in revenues over the next four-five years.
According to the Economist Intelligence Unit, GCC countries and Iraq will be most affected by international energy market developments in 2023. GCC states are expected to see high oil and gas revenue spillover and drive business activity in other sectors. This is especially true for GCC state-backed investments in economic diversification projects. The EIU reported that GCC inflation will be contained by fuel subsidy and exchange-rate pegs with the US dollar in 2023.
Singh stated that: “Increased consumption and persistent geopolitical tensions are changing landscape of energy supply chain. The biggest winners in the MENA region are the oil and gas producers and exporters.
Oil-rich Mena nations are diversifying their economies by raising the profile and visibility of their financial markets. They have launched more regional crude oil benchmarks such as the Abu Dhabi Murban Crude. Many state-owned companies are also being listed on their stock exchanges, which increases liquidity and appeals to foreign investors.
According to the Economist Intelligence Unit, GCC countries and Iraq will be most affected by international energy market developments in 2023. GCC states are expected to see high oil and gas revenue spillover and drive business activity in other sectors. This is especially true for GCC state-backed investments in economic diversification projects. The EIU reported that GCC inflation will be contained by fuel subsidy and exchange-rate pegs with the US dollar in 2023.
Singh stated that: “Increased consumption and persistent geopolitical tensions are changing landscape of energy supply chain. The biggest winners in the MENA region are the oil and gas producers and exporters.
Oil-rich Mena nations are diversifying their economies by raising the profile and visibility of their financial markets. They have launched more regional crude oil benchmarks such as the Abu Dhabi Murban Crude. Many state-owned companies are also being listed on their stock exchanges, which increases liquidity and appeals to foreign investors.
