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World Bank: $ 215 billion in losses if the Gulf states continued decline in oil prices
World Bank revealed that the Gulf states would incur a loss of about $ 215 billion in oil revenues in the event of continued low oil prices for a long time, more than 14% of GDP combined.
And includes Saudi Arabia, Kuwait, Bahrain, the Gulf states, Oman, Qatar and the UAE.
Oil prices are falling more than 50 percent since last June, to reach near their lowest levels in six years on less than $ 50 a barrel.
The World Bank in a report that oil revenues in the Gulf countries accounted for more than half of GDP and 75% of the total export earnings in 2013.
The report said that the proceeds of the Gulf states exceeded the average expenditure, but it is possible that the rise in government spending leads and falling oil prices to change course, it is possible that the surplus turns in the budget, the complex, which amounted to about 10% of GDP in 2013, to a deficit 5% of the total.
The World Bank added that when the average price of a barrel of oil to $ 65, Saudi Arabia will achieve budget deficit of 1.9% of GDP and 5.3% of Bahrain, Oman and Qatar 11.6% 7.4% 3.7% and the UAE, while Kuwait achieved a surplus of 3.1%.
The report went on, despite the enjoyment of the Gulf of substantial financial reserves to cover any shortfall, there are indications that the governments in the region began to reconsider their spending, Saudi Arabia, which has reserves estimated at about $ 700 billion, is currently equipped to increase energy and fuel prices.
Bahrain is also considering, the most affected countries of the Council, a request to obtain support for its budget from its allies in the GCC.
The Sultanate of Oman, has recently released a budget for 2015 does not include spending cuts or collect any additional revenue, but may resort to it in the next year.
The United Arab Emirates has embarked on a search for additional sources of revenue, including charging for expatriates - transfers and if other Gulf states have adopted this policy, it may adversely affect the recruitment of foreign labor and reduces the emerging remittance flows.
The total remittances from the Gulf flows to the rest of the countries in the region about $ 21 billion in 2013, and the form of remittances from Saudi Arabia half the number.
The report revealed that the decline in oil prices could lead to a decline in aid flows from the Gulf to the rest of the countries in the region, adding that bilateral aid to follow oil prices historically.
He added, in spite of the allocation of aid for political reasons in recent times, there may be reasons to believe that this pattern will not be repeated in the current deterioration.
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