The Research Unit in Bank of America Securities, Merrill Lynch in its report said that the economies of Saudi Arabia, UAE and Kuwait, will shrink this year amid a drop in oil prices to resume growth in 2010.

The report emphasized that the drop in gross domestic product for the three largest economies in the largest oil exporter in the world comes after the registration of the Gulf states combined growth rate was almost 43% in the past six years.

 
He continued to say that all the economies of the Gulf, except Kuwait suffer a deficit in the budget this year if the average price of a barrel of oil to $ 45 in 2009.

 
The report pointed out that the credit crisis and deepening global recession in the fourth quarter the most recent significant change in macroeconomic fundamentals in emerging markets.

 
He added that the gross domestic product in Saudi Arabia – the largest of the world in terms of oil – would fall by 0.2% with price stability, while the decline in the United Arab Emirates, Kuwait 0.6%, and by 1.8%.
The three countries that the economy will resume growth in 2010 to Saudi Arabia recorded a growth rate of 2.8% and 1.9% United Arab Emirates, Kuwait 2%.
He noted that the Governments of the Gulf saved 70% of oil revenues since 2002, which provides huge reserves to support spending plans if the need arises.