DUBAI – The combined GDP of the six-nation Gulf Cooperation Council (GCC) is projected to grow by 5.8 percent to peak at $1.6 trillion at current rates, a new report by Kuwait-based Gulf Investment Company (GIC) said. Qatar will lead growth in the region with around 8.7 percent, while growth will be about six percent each in Saudi Arabia and Kuwait, 4.5 percent in the UAE, 4.2 percent in Oman and 3.1 percent in Bahrain.



It added that the recent decline in oil prices will not affect the economies of Gulf hydrocarbon exporters, given the high public spending and reforms being implemented by most members.



The price of oil is lower on fresh concerns about the Chinese economy and a lower forecast for global demand for crude.



China said Friday that the country’s exports grew just 1 percent in July from a year earlier while import growth slowed to 4.7 percent.

That suggests growth continues to slow in the world’s second-largest economy.



Meanwhile, the International Energy Agency lowered its forecast for global crude demand for the year to 89.6 million barrels a day from 89.9 million.

Benchmark crude fell 90 cents to $92.47 a barrel in New York. In London, Brent crude dropped 97 cents to $112.25 on the ICE Futures exchange.

"Despite the speculation about a further oil price decline, the GCC economies are still expanding as they are based on real growth pillars," the GCI report said. "The first and most important pillar is the high public spending in most member states, as it accounts for nearly 35 percent of GDP. This is coupled with the implementation of massive projects worth nearly $1.1 trillion, almost a quarter of the world’s investment in infrastructure and energy," it explained. – SG/Agencies