Rising oil prices and massive government spending are likely to boost economic growth throughout the Middle East this year.

But it will not be enough to keep pace with the world's most dynamic emerging market economies, a survey of forecasters by The Media Line shows.

Among the region's leaders, Saudi Arabia's $450 billion economy is expected to accelerate growth to 4.3 per cent this year from an estimated 3.6 per cent in 2010, according to a median of seven economists polled by The Media Line.

Egypt, whose gross domestic product reached about $220 billion in 2010, will grow 5.7 per cent, hastening from 5.1 per cent in 2010, the forecasters say.

Qatar, with a GDP of $55 billion, is evolving into a major regional factor, propelled by rapidly growing energy revenues.

Five forecasters see economic growth slowing but remaining well into the double digits - a median forecast of 14.3 per cent this year versus 16 per cent in 2010.

'Oil prices are approaching $100 a barrel and this is going to create a very strong tailwind to government expenditures, which will lead to economic growth in the Gulf region,' said Citigroup Middle East global markets economist Farouk Soussa.

'There's a lot of money being spent by governments regionally.'

Imad Al Atiqi, a member of Kuwait's Supreme Petroleum Council, said that speculation could push oil to $110 per barrel within a few weeks.

The climbing price has enabled the Gulf economies to embark on giant infrastructure development projects.

Qatar, which will have to invest heavily in transport infrastructure, hotels, stadiums and housing to host the 2022 World Cup tournament, has budgeted $250 billion for development over the next 15 years.

Kuwait has set aside $104 billion for development between now and 2014 and Oman about $80 billion over the next five years.

Saudi Arabia is in the process erecting five new economic cities on its desert sands.

Global emerging market economies are likely to show a slowdown from their 2010 pace, with the median of six forecasters surveyed by The Media Line seeing growth slow to 6.4 per cent this year from 7.2 per cent in 2010.

But, among the economies covered in The Media Line survey, only Qatar is likely to exceed the emerging market median.

The UAE remains the poorest performer among the economies surveyed.

Dragged down by some $110 billion in debt and a hugely overbuilt property sector in Dubai, the UAE will see growth of 3.2 per cent this year, according to the median estimate of seven forecasters in the poll.

Nevertheless, that will be an improvement over 2 per cent in 2010.

Another risk for the region's economies comes from inflation, created by higher food prices. Right now, consumer prices remain subdued in most of the region, Barclays Capital said in a December report. In Saudi Arabia, for instance, inflation will remain almost unchanged from 2010 to 2011 at about 5.6 per cent, five forecasters estimated.

In Egypt, however, consumer prices will exceed 11 per cent in 2011 as they did in 2010, according to the median of six economists polled by The Media Line.

Food prices remain a sensitive issue, especially in poorer countries where it makes up a major component of household costs.-TradeArabia News Service