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FINANCIAL NEWS
Gulf banks to remain unaffected by euro’s debt crisis
20 Nov 2011
(MENAFN) Oman Central Bank Executive President, Hamood Sangour Al-Zadjali, said that Gulf banks had little exposure to the euro zone’s debt, which would keep them unaffected by the crisis, reported Arab News.
Al Zadjali added that the effect of the debt crisis would hamper euro’s economy, which might weaken oil demand, a move that would affect oil prices, thus, negatively affecting the Gulf nations’ economies since they largely relied on oil exports.
He also said that crude represented 69 percent of Oman’s budget revenue, and the hydrocarbon sector contributed with 46 percent of the country’s economic output.
It is worth noting that Oman’s 2012 budget will depend on oil price of USD75, however, the government hopes prices to go up to near USD100.
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