Stabilised oil prices boost the economy

21/09/2009

The stabilising of oil prices has led to orders to South Korean power plants benefiting from increased interest from the Middle East, reports the Korea Times.

Orders from the Middle East were to the value of £5.9 billion in July and August, a 20 per cent increase on the £4.9 billion at the same time the previous year.

Park Chul-hyung, a senior researcher at the Korea Institute for International Economic Policy, said: "It's more like a temporary surge as Middle Eastern countries are resuming halted projects with rebounding oil prices."

He added that things were looking increasingly promising with more research revealing that the economy in the area has already hit the bottom.

Earlier this month South Korean construction group Doosan Heavy Industries & Construction sealed a deal to construct the Qurayyah Combined Cycle Thermal Power Plant, which is 65 km from the third largest city in Saudi Arabia, Ad Dammam.