(Washington Insider Magazine)-Middle Eastern companies are expected to net an extra $1.3 trillion (£1.09 trillion) via an unprecedented oil windfall from elevated fuel costs during the next 4 years.
The IMF, otherwise known as the International Monetary Fund, predicts that fuel exporters, particularly in the Gulf states, will cash in on high gas prices from the oil windfall and seek to increase their market share in a market known for experiencing volatility since the Russian invasion of Ukraine.
Russia used its stronghold in the fuel industry to strengthen its allies and cripple their opponents by increasing exports into Asia and choking off supplies to European countries, sending them scrambling for alternative sources.
Jihad Azour, the IMF’s director of the Africa and Middle East regions, believes the additional revenue should be invested in advancement, particularly in finding greener energy solutions. He believes this to be a pivotal moment for Gulf states to grow in their domestic technology sectors and gain an overall increase in output globally.
The influx in revenue is expected to line some of the globe’s deepest pockets, namely the QI (otherwise known as the Qatar Investment Authority), the Public Investment Fund for Saudi Arabia, the Investment Authority for Kuwait, Mubadala (of Abu Dhabi), and ADQ. It’s expected that these Middle Eastern investors will fund massive infrastructure projects and invest abroad.
The IMF is expecting the Gulf Cooperation Council to triple in economic growth compared to last year’s 2.7% figure, predicting a 6.4% expansion collectively.
The energy firm Saudi Aramco highlighted the abundance of profits by gas and oil exporters in the energy crisis with a reported 90% leap in the quarter running to the end of June to $48 billion, marking one of the largest quarterly profits in all of corporate history.
The Saudi crown prince invested $7.5 billion in US companies such as Amazon and PayPal. Russian state gas company Gazprom warned of a staggering 60% increase in price to export oil to Europe, signaling a continuation and possible deepening of the energy crisis.
Britain is expected to know the full extent of the energy crisis when Ofgem sets the next industry price cap on August 26th, which is expected to increase from £1,971 to £3,582.
