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Oil output cut deal to give Gulf Arab countries economic relief in 2017

Xinhua, December 14, 2016 Adjust font size:

A top wealth management expert said here Tuesday that the recent OPEC deal to cut oil output has given Gulf Arab countries some economic relief for 2017.

Gary Dugan, chief investment officer of wealth management of Dubai's first bank Emirates NBD, said the oil market is seeing a stronger price after 13 OPEC member states agreed late November to slash oil output by 1.2 million barrels per day.

On Monday, the price of the black gold climbed to more than 55 U.S. dollars per barrel, a 17-month high.

Dugan also forcast a 15 percent rise for Gulf Arab stocks in the first quarter of 2017, "as valuations remain attractive and investors from abroad continue to put funds into the emerging markets."

"As the delays and cancellations of oil and gas projects start to weigh on supply growth which in turn should lead to firmer crude prices," the investment expert added.

However, Donald Trump's surprise win in the U.S. presidential election may create some headwinds for the region.

"The downside risks have decreased somewhat, but the question exists about U.S. President-elect Donald Trump's future foreign policy in the Middle East," said Dogan.

On relations with China, the expert said the Gulf Arab countries will likely see "more projects and investments" between the two entities.

Since 2014, China has been the biggest trade partner of the emirate of Dubai, the business and tourist hub of the United Arab Emirates. Endit