High oil prices swell the coffers of Arab nations

Published 9:00 pm Sunday, October 15, 2006

CAIRO, Egypt – A sharp rise in oil prices has led the gross domestic product of Arab states last year to increase to more than $1 trillion for the first time, an Arab official said Sunday.

The GDP of the 22-member Arab League countries reached $1.05 trillion at the end of 2005, a $180 billion increase from the previous year, said Ahmed Gweili, chairman of the Arab Economic Unity Council.

High oil prices in the past two years have added billions of dollars to the coffers of some Arab states, mainly in the Gulf, leading to budget surpluses and a boom in stock markets and real estate prices.

Gweili said oil revenues increased 44 percent to $350 billion last year.