Commodity Online
RIYADH : In order to fulfill its commitment of an oil output increase, Saudi Arabia is planning to invest $80 billion, according to an economic report unveiled Tuesday.

Saudi Arabia has decided to increase its oil output to 12.5 million barrels per day and expanding its refining capacity by 43 percent to six million bpd within the next few years.

The report, which was issued by the Federation of GCC Chambers of Commerce and Industry, expects that the gross GCC domestic product will grow by 27.9 percent this year to reach $1 trillion with the increase in oil prices.

The federation believes that the Gulf Cooperation Council of Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman will achieve a 31.2 percent surplus in their current accounts in 2008, compared to 28 percent last year.

The report said growing oil prices would boost GCC economies and their investments in infrastructure, tourism and real estate development projects. “We also expect tremendous growth in the industrial and service sectors,” it added.

The federation estimated non-Saudi GCC investments in oil in the coming years at about $170 billion and GCC countries would achieve a growth rate of 7.5 percent, adding that this would increase investment in non-oil sectors.