Rising oil prices to boost GCC economies

According to a recent report, the economic prospects for oil-exporting economies in the Gulf Cooperation Council (GCC) looks well positioned over the next few years than in the initial phase of the global financial crisis in 2008-2009. This is mainly because the geographic distribution of growth between developed and emerging markets for the next three to five years should keep oil prices firmly on an upward trajectory. World demand for oil tends to rise at about one-half the rate of global GDP growth. The oil demand is rising by about 1.75 percent a year over the next decade. This is mainly because improvements in energy efficiency in developed markets tend to be partly offset by the increasing number of vehicles in fast-growing emerging markets such as India and China.