High oil prices ensure strong economies across MENA

Economic growth across the MENA region is set to continue at high levels in 2007 and high oil prices will result in healthy fiscal and external surpluses for the oil-producing countries, concludes a recent report by Standard & Poor’s Ratings Services — “Data Watch: Middle East and African Sovereigns In 2007.” Public finances and external accounts in non-oil producers will remain relatively weak, however.

“Among the regional oil producers, Qatar and Bahrain will achieve the highest rates of economic growth, because performance will be bolstered by heavy investment in the non-oil sector,” said Standard & Poor’s credit analyst Farouk Soussa. The two countries are investing heavily in the non-oil sector. Qatar will expand liquefied natural gas (LNG) production in 2007 and Bahrain will be ramping up its aluminium production capacity.
In Africa, Mozambique and Nigeria will record the highest growth rate, driven by mega-projects including gas, oil, and uranium exploration activities. In Mozambique, for example, there is the $240 million Moma titanium sands and smelter project.

Khaleej Times