Arab cash reserves booming

Cash reserves in the Arab region are forecast to record a massive $115 billion growth in 2012. The large surge is being put down to higher oil prices, which have rocketed over regional instability, although prices are beginning to ease.

International cash reserves in Arab nations [2] are forecast to record a massive $115 billion growth in 2012, mainly due to higher oil prices, the Arab Investment & Export Credit Guarantee Corp (IAIGC) said.

In 2011, foreign assets rose by about $20 billion. The 21-state Arab League [3] controlled almost $1,018 billion in cash reserves by the end of last year, up from $998 billion at the close of 2010 and more than twice the amount reported in 2006, the IAIGC said.

Most of the surge occurred in Saudi Arabia.

Arab cash reserves have grown $115 bilion in 2012