Middle East oil exporters are cashing in as Ukraine war hits global economy

Middle East oil exporters are cashing in as Ukraine war hits global economy

Abu Dhabi, UAE (CNN) – The Ukraine war is wreaking havoc on the world economy, but in the Middle East its impact hasn’t been so grim for everyone.

Some of the world’s biggest hydrocarbon producers, the Gulf nations are seeing billions of dollars added to their coffers aided by a Ukraine war-driven rally in oil prices. They are expected to register their first budget surpluses after an eight-year oil slump that was compounded by a pandemic-linked downturn.

Research by Mitsubishi UFJ Financial Group (MUFG) in February showed that Gulf Cooperation Council (GCC) countries are likely to see a GDP surge of 6.1% in 2022 on the back of increased oil prices, as well as fiscal surpluses for the first time since 2014. The GCC consists of Saudi Arabia, Oman, United Arab Emirates (UAE), Kuwait, Qatar and Bahrain.

“This will lead to an aggregate GCC fiscal surplus in 2022 of $27 billion,” said MUFG, adding that recently implemented austerity measures as well as the oil surge will support balance sheets.

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Oil prices had collapsed during the pandemic amid oversupply and diminished demand in lockdown. The benchmark Brent crude oil price