Handy said GCC countries would likely take advantage of falling share
prices in Western stock markets to purchase companies and other assets. He
said GCC foreign investments would drop to about $430 billion from June 2008
through June 2010.
"The outlook for oil prices remains very uncertain, but our current
expectation is that prices will average around $ 60 a barrel in 2009, not
far below the average for 2007," Handy said. "A slight increase to around $
75 a barrel is envisaged for 2010 as global demand begins to recover."
GCC states have invested $2.2 trillion by September 2008, a report by
Securities and Investment Co. said. The report said $500 billion of the
investments have already been launched, although could be suspended should
the price of crude oil continue to fall.
"The GCC has witnessed ample evidence over the past five months that its
financial markets and economies are very much a part of the global economy,"
Security and Investment chief executive officer Anthony Mallis said.
"However, we believe that although the region may yet experience further
pressure, even pain, in the short term, the medium to long-term growth story
remains robust. The economic structure of the region is fundamentally
different to those of developed and other emerging markets."
