Tuesday, July 8, 2008

New “Silk Road” for Energy, Capital Flows

Dubai, Shanghai and Mumbai, or goodbye’’ is one of the sayings that investment bankers like to use these days. The countries of Asia, of course, have a long history of commerce with the states of the Persian Gulf region. But today’s new silk road is linking the two regions through a web of hydrocarbons trade and investment, including an emerging Islamic finance that is quite unprecedented. On one hand, Gulf countries are getting most of their consumer products from Asia (plus machinery and equipment from the EU and the US) and on the other hand, they are sending out all sorts of petroleum products, not only crude oil but also liquid natural gas, refined products like Naphtha, petrochemicals, fertilizers, and metals like aluminum and steel. The Middle East holds 60 per cent of worldwide oil reserves and 40 per cent of worldwide gas reserves—and about two thirds of its energy exports go to Asia.

Read More: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21824388~pagePK:34370~piPK:34424~theSitePK:4607,00.html


Forget yourself for others, and others will never forget you.

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