The combined economy of the six Gulf oil producers went up by around 4.5 per cent in 2010 and is projected to expand at a faster pace of 5.9 per cent this year because of high oil prices.

The surge in oil export earnings will also widen the collective current account surplus in the Gulf Cooperation Council (GCC) countries — comprising Saudi Arabia, Qatar, Bahrain, Oman, the UAE and Kuwait — to 6.9 per cent of the GDP this year from around 4 per cent in 2010, a Federation of the GCC Chambers of Commerce and Industry (FGCCI) report said.

According to the report, this means that the GCC countries will have additional means to stimulate private sector demand.

Citing IMF estimates, the report said the GCC’s oil production would rise from around 15.1 million barrels per day in 2010 to 15.7 million bpd in 2011.

It said the rise would be coupled by a surge in average oil prices, citing the recent sharp price increase to nearly $120 a barrel because of fighting in OPEC-member Libya.

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