The impact of September incidents on the economies of the Arab states

Results of September 11 attacks at the US have not fully appeared yet on the Arab states, but the negative results will be more evident during the few coming months.

An Arab economic study conducted by Henry Tawfiq Azzam issued by the London- based al-Sharq al-Awsat stressed that it is expected that the demands for oil will be reduced because of the world economic recession and the weakness in the movements of flights as well as OPEC's increase of its oil production at half a million barrels. He indicated that all these will result in a weakness in the oil market in the year 2002.

The study added that with the escalated feeling of hatred of Arabs following the incidents of September 11th the Arab investments process abroad will be greatly affected, besides the Arab stock market and the sectors of aviation and tourism which also will be witnessing the same result.

In this regard, the Arab Aviation organization estimated the volume of losses of the Arab aviation companies at USD 10 billion and the same volume is applicable to the sector of tourism.

The study also indicated that the negative reflections to be left by the September incidents will be felt on the budgets of several Arab states for 2002.