Monday 12 October 2009

Rainy-day oil funds see Mideast through downturn

DUBAI, United Arab Emirates — The Middle East has weathered the global economic downturn better than other parts of the world because its energy exporters were able to tap billions of dollars in oil profits collected when prices were booming, the International Monetary Fund said Sunday.

By reaching into those reserves, major oil producers like Saudi Arabia shielded their economies from the worst of the slump by maintaining government spending and injecting liquidity into domestic banking systems rattled by the credit crisis.

Doing so not only blunted the impact of the downturn on their own economies, but also helped shore up the economies of neighboring countries without large oil reserves, the IMF said. Read more

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