Page 108 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

92 Dubai & Co.

Asia—whose consumption of oil is expected to more than double
between 2003 and 2030. China and India will be the main markets
driving this rise in consumption as their massive populations con-
tinue to enjoy greater prosperity and more industrialized standards
65
of living. (See Figure 3.6.)

Figure 3.6 Oil consumption by region, 2003 and 2030 (Source: 2003:
Energy Information Administration [EIA], International Energy Annual
2003 [May–July 2005], Web site, www.eia.doe.gov/iea/. 2030: EIA.
System for the Analysis of Global Energy Markets [2006])

Yes, a bet on the GCC is a bet on sustained oil prices. This seems
like a fairly reasonable wager, however, as fundamental indicators
suggest that $40-plus oil is here to stay. And under a “high” price
scenario, oil prices could be 30 percent higher than they have ever
been by 2030, and GCC wealth would be far greater than it is today.

Short-Term Corrections: Will the Bubble Burst?
With the high values currently placed on GCC assets, there is a
definite risk of short-term market corrections in certain sectors.