Of oil and the GCC
The overpaid consultants at McKinsey have done an analysis on how much the GCC are likely to invest in foreign assets.
Petrodollars not invested locally will spill over into global capital markets. If oil lingers at around $100 a barrel and domestic investment stays at historic levels, the GCC would send $5.1 trillion in new funds into world markets over the next 14 years, boosting these states’ total foreign wealth to $10.5 trillion by 2020.
I would say that the liquidity in the GCC is good news for Pakistan, but considering that this massive wealth is on the back of draconian oil prices, the net result for the world seems quite negative.
