Qatar, UAE to stay richest among Arab countries

Qatar and the UAE remained the wealthiest Arab nations in 2007 and are expected to maintain that position this year because of high growth in their economies, according to official estimates.

Although they have recorded one of the highest population growth rates in the world over the past 10 years, strong performance of their hydrocarbon sector has allied with massive public and private investment to catapult the two countries to the forefront of the club of wealthy nations.

The figures by the Cairo-based Council of Arab Economic Unity (CAEU) show-ed Qatar maintained its position as the wealthiest Arab country in 2007, a rank it has kept for the past decade because of its surging gas wealth. Its per capita income peaked at nearly $72,370 (Dh265,822) in 2007 to allow it to maintain its status as one of the richest five countries in the world.

The UAE ranked second in the Arab region and one of the richest 20 countries in the world, with its GDP per capita climbing to a record $42,270 last year.

"The two countries have dominated the Arab region in terms of personal wealth over the past few years and I think they will maintain that position this year and the years to come," said an Abu Dhabi-based banker. "The reason is that their economies have recorded the highest nominal growth rate in the Arab region over the past years mainly because of their surging oil and gas income. In the UAE, the rapid expansion in the non-oil sector is also playing a key role in this respect. I think their per capita income will rise in 2009 despite an expected decline in oil prices."

In recent comments, a senior Qatari economy official said his country is expected to become the wealthiest nation on earth in the next few years as it is pushing ahead with mega projects to become the world's largest LNG exporter by 2011, when output will soar to nearly 77 million tonnes. Growth in Qatar and the UAE over the past five years has exceeded 15 per cent annually, more than double the seven per cent rise in their population.

CAEU figures showed Kuwait, another oil heavyweight, ranked third in the Arab world in terms of GDP per capita, which stood at $33,600 last year. It was followed by Bahrain, with about $24,100 GDP per capita, although it is not an oil exporter. Although it controls a quarter of the world's oil, Saudi Arabia ranked fifth with a per capita of $15,500 in 2007. Oman came after Saudi Arabia with $15,100.

According to the report, most Arab nations recorded increases in their per capita incomes but Sudan, Djibouti, Yemen and Mauritania maintained their position as the least wealthy nations. As for the Arab world as a whole, the combined per capita income stood at only $4,661 in 2007, higher by around 11 per cent over 2006.

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