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chapter two - OAPEC

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countries in particular. The latest data were drawn mainly from the Country<br />

papers received on January 31, 2010, which will be presented to the ninth<br />

Arab Energy Conference.<br />

1-1 Total and Per Capita Energy Consumption<br />

Energy consumption growth in the Arab countries is affected by three<br />

key variables: GDP, population, and prevailing energy prices on local<br />

markets. The following paragraphs provide an overview of these variables.<br />

1- GDP: The global financial crisis which launched in the second half of<br />

2008 led to global economic recession in 2009. This situation had a<br />

negative impact on Arab economies as a whole, and on the petroleum<br />

economies in particular for the <strong>two</strong> following reasons:<br />

- The drop on world oil demand and on the levels of oil prices had led to<br />

significant drop on value of Arab countries oil exports, which is the main<br />

engine of economic and social development.<br />

- The decline in Arab revenues generated from the foreign investments.<br />

Data published in the Joint Arab Economic Report in December 2009<br />

indicate that most Arab countries achieved high growth rates despite the<br />

negative impact of financial crisis in the second half of 2009. The data<br />

showed that GDP growth rate in constant prices in Arab countries reached<br />

26.2% a level that never seen since 2000. GDP in Arab countries increased<br />

to $1899 billion in 2008, due to the rise in oil prices in the first half of the<br />

year. Figure (1-14) shows the development of Arab Countries’ GPD in<br />

Current Prices 2005-2008.<br />

Figure 1-14<br />

Arab Countries’ GPD in Current Prices 2005-2008<br />

($ billion)

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