Tag Archives: economy

Watch “IEA Just Dropped A Bomb on Oil Industry” on YouTube

If renewable energy like solar , wind and geothermal ( using the heat from the deep underground …) get more efficient and reliable , the demand on oil and natural gas would be undermined a lot by 2050 as some expect . To compare , see how coal has become much less expensive than it were a 100 years ago due to finding several alternatives like natural gas and oil plus nuclear energy . Not only is there renewable energy technology evolving but also some biofuels made from algae and even plastics are now being discovered and invented . Development is taking place in many areas, and some oil producing companies and oil exporting countries themselves are starting to invest in renewable green energy projects and other infrastructures for sustainable green economic development.

Industrial growth in the Arabic Gulf

    
   As emerging or rising nations, the Arabic Gulf countries like Kingdom of Saudi Arabia, United Arab Emirates,  Bahrain,  Qatar, Oman, and Kuwait have experienced industrial growth in general. According to statistics , the value of industrial investment increased in these  countries from 181 billion $ in 2009 to 369 billion $ in 2013. This industrial development was achieved thanks to the governments there providing adequate infrastructure such as developing enough electric power factories and building up large airports and harbors for example. Many industrial cities in that region have been established like Jubail industrial city in Saudi Arabia that has dozens of factories and industrial facilities. Another example is Dubai industrial city that has many manufacturing companies and enjoys many facilities like big office spaces , open storage yards and labour villages in Dubai in United Arab Emirates. Since all of the above mentioned countries have high income , high GDP, and great accumulated wealth from Petro dollars, they are offering huge amount of development funds and incentives for industry there to grow and prosper. The Gulf countries ( in South West Asia ) do have cooperation between private sector and public sector. Moreover,  highly skilled and experienced workers and engineers from all over the world are encouraged to work there due to high level of income and high wages, which are among the highest in the world. However, many locals or citizens in the wealthy Arab Gulf countries are sent for free at the expense of the state or government to study abroad in USA, Europe , Australia and Japan , so these students can gain the formal education to be a well qualified worker in the future once they return to their homeland. Another factor assisting industrial development in the Gulf is that some of the Gulf countries are now among the 40 highest spending countries on research and development.

Another important factor as well contributing to industrialisation is the abundance of natural gas and petroleum that is easy and cheap to extract and export. This region enjoys very important share in the oil industry and production despite the increasing production of crude oil worldwide.

   They are oil exporting countries, so they have accumulated 2,450 billion dollars in the years between 2003 to 2013. Petroleum is not only a great source of wealth and income to the Gulf countries,  but also natural resources or cheap fuel to generate energy used to mobilize industry. Crude oil can be used as a low cost and abundant raw material or primary material that can be processed intob petrochemical and chemical industry. Methane gas, ethane gas and  Amonia can be produced and processed from crude oil. In specific, Amonia plays a significant role in the production of agricultural fertilisers that can boost agricultural productivity. These agricultural fertilisers are exported to South Asia and East Asia where population mass is big and increasing agricultural productivity can truely benefit the economy there and feed the population.

   The fertiliser production capacity grew 4 percent in the Gulf where as the growth average in the world was 1.7 % in 2013. Thus , the Petrochemical and chemical industry is the second largest manufacturing sector of the whole industry  in the Gulf and so the Petrochemical industry is estimated to be around 97 billion $
Of industrial production per year.
In the coming future ,  the Gulf region can develop and play a growing importance in the world industry.

   They realize that they have to diversify their economies  because of the falling prices of oil due to the expanding supply of crude oil worldwide. Technological progress and development has increased the extraction and production of oil among which is the increase of one million barrels of oil from USA in one year only. Alternative renewable energy sources such as hydroelectric,  wind , solar, geothermal and bio fuels are increasing in a continuous manner and so can reduce the demand and hence the price of oil barrels year after year. In 2012 and 2013 , 19 % of energy consumed worldwide has been from renewable sources of energy. In that manner, the gulf region (which is rich in Petroleum and natural gas )has to rely on industrial,scientific  and technological development  step by step in order to remain rich and economically secure.

Great Economy of USA

The United States of America has the largest size of economy in the world. The US real GDP* (Gross Domestic Product after taking inflation into account) in the second quarter of 2014 has become approximately 16,000 billion dollars, which is around one fifth of the world economy. The economic growth was 4.2 % in second quarter of 2014 that was higher than many developed countries. Meanwhile, the US Dollar “$” is the most widely used currency in international transactions and world trade as a reference and a means of exchange nowadays. Moreover, the US dollar constitutes 61% of the world reserve currency according to some statistics. The total national wealth of USA in 2008 was $ 118 trillion (including $ 57 trillion or $ 57,000 billion household net worth). In 2009, 30 % of the entire world’s millionaires were residing in US. In 2011, 34 % of the world billionaires were American. All of the mentioned facts and statistics above are an indication that USA is one of the wealthiest nations on earth.
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The strength of the Lebanese Banking Sector

Lebanon is a country of wonders and miracles ranging from famous artists and singers like “Fayrouz” to brilliant poets and writers like Gibran khaleel Gibran and from magnificent nature to many scientists and inventors of Lebanese descent scattered in the world. Hence, one of the wonders of Lebanon is its firm and prosperous banking sector which contributes to turning Beirut into an important regional financial center and providing support and guarantee to the whole Lebanese economy.

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General View on Economic Improvement in Lebanon

It has been obvious and clear that Lebanese economy has surpassed local unstable political situation and the global financial crisis in the past years; thanks to the careful and smart monetary policy of the central bank (that avoided much investment in highly risky financial tools and kept away from giving loans without taking adequate guarantees and making enough assessment for each bank customer who requests a loan). The governor of the central bank, Riad Salami, has been rewarded an international prize because Lebanese banking management and system have been proved successful. Besides, Lebanon has been one of few countries in the world that has had an economic growth of 9% and 8% in 2008 and 2009 respectively.

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