Net foreign assets in the GCC grew by $456 billion to reach an all time high last year, mainly due to vigorous oil prices, the Institute for International Finance (IFF) said. Hydrocarbon exports are expected to experience the massive boom for 2012, rising from about $685 billion last year to $730 billion in 2012. Net foreign assets (combined) of the GCC members reached a record high of almost $1,605 billion by the close of 2011, up from about $1,149 billion at the close of the previous year. That figure declined in 2009, in response to the worldwide financial crisis of 2008. The IIF reported that assets will reach $1,905 billion by the close of this year, representing an increase of almost $300 billion, and should hit $2,139 billion over 2013 as a result of high oil prices. Nominal GDP in the GCC rose on the backs of increasing output and prices, surging by almost 31 percent to hit $1.4 trillion in 2011. Despite rising imports and fiscal expansions, surpluses across the GCC rose as a result of increasing hydrocarbon revenues. The external current account surplus (consolidated) for the GCC is forecasted to hit $358 billion this year, up from $327 billion last year. Many of the member states reported higher net foreign assets last year. Saudi Arabia recorded an increase of $106 billion, hitting almost $551 billion, while the UAE's assets rose $59 billion to reach $521 billion. Kuwaiti net foreign assets are forecasted to rise from $396 billion at the close of 2011 to $457 billion in 2012. Qatar's assets are expected to nearly double, moving from $59 billion to $107 billion. Oman and Bahrain are also forecasted to report modest increases. The highest levels of business confidence in the Middle East were found in Saudi Arabia and the UAE, according to the ACCA's most recent Global Economic Conditions Survey, completed with the help of the IMA (or Institute of Management Accountants). Confidence levels were at 42 percent in Saudi Arabia and 38.5 percent in the UAE. Both member states rely on robust and sustainable public spending, but Saudi Arabia can count on the highest levels of performance in investments and new orders, according to the report. Egypt has not recovered from the political turmoil of 2011, even after the January elections, and reported negative figures for business confidence. More professionals in the Middle East reported business confidence, up from 26 percent near the end of 2011 to 32 percent in Q1 of 2012, according to a global survey. The latest ACCA/IMA report indicated that business confidence fell from the same period last year, with 30 percent of respondents reporting higher confidence levels in Q1 of 2011 and only 24 percent in Q1 of 2012.
