Middle East Economic Survey

VOL. L

No 32

6-August-2007

OIL PRICES/GCC

Record Oil Revenues Keep GCC States Afloat As Dollar Slumps

The dollars fall in July to a fresh low against the euro and 26-year low against sterling have again raised questions about the effect on Gulf economies, which receive the bulk of their revenue from oil priced in the US currency. Its slump has pushed up the cost of imports, particularly from the Eurozone and UK, adding to inflationary pressure. The prospect of continuing...