The International Monetary Fund (IMF) is urging the Gulf nations to cut spending and diversify their revenue-base, as its report reveals that economic growth in the six nation Gulf Cooperation Council (GCC) will be 1.8%, down from 3.3% YoY due to a fall in oil prices. It estimates that the Middle East's oil dependent economies missed out on $390bn in oil revenues this year alone. IMF's Masood Ahmed warns that last year will see "a continuation of a low oil-price environment, so we are going to see further, maybe $100bn or so, in terms of lower revenues from oil exports," adding that Saudi Arabia, Bahrain and Oman will become "significant debtors" between 2016 and 2021, with financial needs exceeding their reserves. Today, eyes will be on Saudi Arabia as it is due to reveal its plans for reducing the country's reliance on oil revenues.
The International Monetary Fund (IMF) is urging the Gulf nations to cut spending and diversify their revenue-base, as its report reveals that economic growth in the six nation Gulf Cooperation Council (GCC) will be 1.8%, down from 3.3% YoY due to a fall in oil prices. It estimates that the Middle East's oil dependent economies missed out on $390bn in oil revenues last year alone. IMF's Masood Ahmed warns that this year will see "a continuation of a low oil-price environment, so we are going to see further, maybe $100bn or so, in terms of lower revenues from oil exports," adding that Saudi Arabia, Bahrain and Oman will become "significant debtors" between 2016 and 2021, with financial needs exceeding their reserves. Today, eyes will be on Saudi Arabia as it is due to reveal its plans for reducing the country's reliance on oil revenues.