Thursday, Jun 28, 2012

1110 GMT [Zawya Dow Jones]--London-based Capital Economics expects resource-poor Arab states to outperform their Gulf counterparts in terms of economic growth in the longer run. Expects Egypt and Morocco to lead the top performers' pack with GDP growth rates averaging as much as "7% a year over the next two decades." Despite their transition situation and higher oil prices that weighed down the fiscal woes, resource-poor countries may still enjoy accelerated growth due to economic reforms coupled with a "potential for catch-up growth--given low incomes in these countries." Says Arab Gulf states may have escaped the regional social unrest, but that "simmering tensions between Sunnis in the Gulf and their Shiite-neighbour Iran are near boiling point," which adds to concerns over oil supply disruption.

(leila.hatoum@dowjones.com; Twitter: @ZDJnews)

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28-06-12 1117GMT