Saudi Arabia

Gulf states including Saudi Arabia and the United Arab Emirates will be forced to revalue their currency pegs this year following the dollar’s declines and the Federal Reserve’s interest-rate cuts, Bear Stearns has said. Five Gulf nations lowered interest rates last week in step with the US to keep their links to the dollar even as inflation accelerates. When Saudi Arabia left rates unchanged after the Fed’s Sept. 18 reduction, the riyal rose to a 20-year high.

Opec countries meeting in Saudi Arabia clashed on Friday over the declaration to be made by leaders at this weekend’s summit, as Venezuela and Iran pushed for a statement on the impact of the weak dollar on the group’s revenues. The disagreement was revealed when a ministerial meeting Friday afternoon, supposed to be in closed session, was accidentally broadcast live to reporters.

Wall Street bankers are flocking to the Middle East, and it's not for oil or the balmy weather. Years of raging energy prices have made the states surrounding the Persian Gulf one of the fastest-growing regions and a source of immense wealth seeking investments at home and around the world. The sovereign investment arms of Saudi Arabia, Bahrain, Qatar, United Arab Emirates, Oman and Kuwait have an estimated $1.5 trillion at their disposal.