Gulf oil producers will continue buying dollar-based assets with their windfall revenues, but not all the money will flow into the US, according to Mohsin Khan, director of the IMF’s Middle East and Central Asia department.

Gulf oil producers including Saudi Arabia, Kuwait and the United Arab Emirates will record current account surpluses of $239bn (€190bn, £128bn) this year, rising to $259bn in 2007, a new IMF report says.