The Gulf is home to some of the largest oil and gas exporters in the world
According to the International Monetary Fund (IMF), energy-rich Middle Eastern states are expected to reap an additional $1.3 trillion in oil revenue by 2026.
IMF projections highlight how high energy prices, sparked by Russia’s invasion of Ukraine, are supporting Arab Gulf monarchies as much of the rest of the world struggles with inflation galloping and fears of recession.
Jihad Azour, IMF director for the Middle East and North Africa, told the Financial Times that oil and gas exporters in the region “will see an additional $1.3 billion in cumulative oil revenues” over the next four years.
The Gulf is home to some of the world’s largest oil and gas exporters, as well as several of its largest and most active sovereign wealth funds, including Saudi Arabia’s Public Investment Fund (PIF), the Investment Authority, Kuwait Investment Authority and a collection of funds in the United Arab Emirates.
Gulf funds have also been active during the Covid pandemic, and during the 2009 global financial crisis, notes the Financial Times.
Mr Azour said it was important that the Gulf states use this latest windfall to “invest in the future”, including in preparing for the global energy transition.