17/12/2014 05:44 AST
HSBC Bank Oman SAOG’s customers were recently invited to the Bank’s 17th Annual Middle East Economist Roadshow to hear from HSBC’s in-house London-based economists as they discussed the outlook for the region in light of falling oil prices and a strengthening US dollar.
Simon Williams, Chief Economist, Central & Eastern Europe, Middle East and Africa, HSBC, said, “High oil prices and increased crude oil production supported economic recovery after the global crisis. While Oman’s growth story still has substance, a falling oil price indicates that story has passed its peak. Public spending has trebled since 2005 but revenue remains dominated by oil, which delivers 90 per cent of total receipts. With oil prices hovering around $70 a barrel, a five-year low, Oman’s budget, in line with that of other major oil producers in the region, looks set to be tipped into the red next year for the first time since 2009. While this is unlikely to trigger direct cuts in the large public investment programme given the years of plenty across the region, and not just in Oman, it does bring questions of future spending restraint and accelerating non-oil revenue growth firmly into view.”
David Bloom, HSBC’s Global Head of Foreign Exchange Strategy, added, “The slowdown in global economic activity seems to be intensifying, with particular weakness in the Euro zone. Global financial markets suddenly seem very nervous about economic growth prospects.
Could the weakness in global activity so alter the prospects for the US that the dollar rally runs out of steam? This scenario seems unlikely, given the strength of the US economy.”
HSBC Bank Oman corporate customers had gathered at the Al Bustan Palace — A Ritz Carlton Hotel, to listen to the views of the economists, and took the opportunity to ask questions about the GCC and Oman economies in light of the current operating environment locally, regionally and globally.
“We were delighted once again to welcome David and Simon back to the country to share their expert knowledge and experience with our customers,” expressed Andrew Long, CEO of HSBC Bank Oman. “Our annual Economist Roadshow is a great opportunity for HSBC Bank Oman to connect its customers across the Sultanate to global industry experts in support of their future growth ambitions.” Long added, “The Middle East is a region of growing opportunity and influence in the world economy and this year, understandably, there was a lot of interest and debate about the oil price and how this will impact customers and the GCC region in general.”
Oman Daily Observer
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