Oil boom is spurring a new Middle East bonanza

[dArKeR]

THE OBSERVER , LONDON
Monday, Apr 12, 2004,Page 12

Iraq is in turmoil and the Israeli-Palestinian conflict festers, but the Middle East is now the second-fastest growing region in the world.

Only China and northeast Asia outperformed its stellar economic growth of 5.9 percent last year.

The world average was 3.2 percent.

"That fact may surprise many, given the regional geopolitical backdrop. A combination of high oil prices, low interest rates and robust domestic confidence delivered the best regional growth performance for almost a decade. These factors should continue to drive strong growth in 2004," says Daniel Hanna, Dubai-based economist at Standard Chartered.

An unusual combination of high oil prices and high production volumes have underpinned Middle East growth.

Stock markets have clocked record years; the Kuwait exchange ended last year up 102 percent, followed by Egypt (88 percent) and Saudi Arabia (76 percent), largely on the back of oil-related industries.

http://www.taipeitimes.com/News/worldbiz/archives/2004/04/12/2003136405

[Old and In the Way]

1. Gee, with Iraqi oil off the market, sure makes SA/Kuwaiti stocks

more valuable.

[teryang]

2. With American expenditures on Iraqi war

...the area was bound to prosper further. Why don't they mention this? Japan's economic status as a superpower was based on the Korean war and the Vietnam war when billions were pumped into her economy by the Pentagon.