26 October 2003 - 13:23
  • News ID: 7263
UAE Second in Arab Per Capita Oil Income

Abu Dhabi - Crude oil exports have pumped more than $3 trillion into Arab coffers over the past 32 years but only a handful of governments have managed to save part of those funds and build a cushioning investment empire abroad, according to official figures.

The UAE and other Gulf Arab oil giants have snatched at least two-thirds of those funds, given their massive oil production and reserves. In terms of oil income per capita, calculated on the basis of the value of crude sales to the population, the UAE ranks second after Qatar. The figures by the 10-nation Organisation of Arab Petroleum Exporting Countries (OAPEC) showed the region's oil export revenues totalled nearly $3.07 trillion between 1970 and last year, an annual average of around $95 billion. But earnings sharply fluctuated during that period because of persistent variations in crude prices and output by member states. In 1970, revenues stood at only $8.6 billion but they jumped to $74 billion four years later. In 1980, when oil prices shot above $30 because of the Iraq-Iran war and production was at its highest level, earnings skyrocketed to $213.7 billion, the Arab world's highest ever income in current prices. Revenues reversed their upward trend in the following years as they slumped to around $198.4 billion in 1981 and dived to one of their lowest levels of $51.5 billion in 1986 after crude prices collapsed below $10 due to a global price and production war. Until last year, Arab oil income fluctuated sharply, recovering to nearly $178.9 billion in 2000 due to a surge in crude prices. It receded to around $139.5 billion in 2001 and $125 billion last year but is projected to rebound this year. In real terms, the Arabs' oil income is below one-third their revenues during the oil boom of the 1970s, considering high inflation rates and the decline of the US dollar. Although many of them have managed to build an immense overseas investment empire from oil revenue surpluses during the oil boom, such investments have sharply eroded in most countries because of persistent withdrawals to finance wars, meet growing development needs, and shore up chronic budget and current account gaps. The UAE is one of a few regional countries that has been able to maintain and even consolidate its overseas assets given the steady increase in its oil output. Such assets have enabled it to bridge budget gaps and avert heavy domestic or foreign borrowing. A breakdown showed that between 1997 and 2001, the UAE earned around $84.6 billion, nearly 14 per cent of the total Arab oil income of $615 billion during that period. It was second only to Qatar in terms of per capita oil revenues, with a share of $8,413 in 2000 and $5,474 in 2001. Qatar had a share of $13,939 and $10,957 respectively. Although it accounted for nearly 40 per cent of the total Arab oil income, Saudi Arabia had one of the lowest per capita oil shares of just $2,609 in 2001 because of its high population compared with other Gulf states. P.I.N// GN Online
News ID 7263

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