GCC economies need an oil price of at least $22 a barrel, to continue to flourish, a leading Arab banker said, cited by the Gulf News on Thursday.
“As long as oil prices stay above the $22 to $25 a barrel range, there are positive implications for GCC economies,” said Arab Banking Corporation (ABC) president, Ghazi Abdul-Jawad.
“ABC is continuing to expand in the Arab world in a bid to achieve diversification of income,” said Abdul-Jawad.
The group is currently very liquid, he added, and would not require financing from the market.
However, ABC’s London-based subsidiary, ABC International Bank (ABCIB), is seeking a $150 million facility, which is already fully underwritten, the paper quoted him as saying.
The funds will be used for general corporate purposes, he added.
Meanwhile, he said that the group is looking for new opportunities in the Arab world, while its exposure to the troubled countries of Thailand, Indonesia, China, Russia and Pakistan has been reduced to $365m, representing 0.7 percent of total credit exposure.
The strategy of expansion in the Arab world, via a series of domestic banking platforms, has reaped early rewards, said the economist.
Net income from new business units in Tunisia, Algeria and Egypt, which were non-existent prior to 1999, amounted to over $11m last year, which was more than double the 1999 return.
A further 40 percent increase is targeted for the current year, he said – Albawaba.com
