Economist Mahmoud Al Hadari said that Gulf states’ losses will continue to increase as a consequence of the decline in global oil prices, reports Almesryoon.
Gulf states’ losses reached $360 billion over the past year and the states will attempt to cover the budget deficit through sovereign funds, said Al Hadari.
Al Hadari added in an interview with the Al Souq programme on Alghad Al Arabi TV that the economic situation is not bad, but oil revenues dropped dramatically, prompting Gulf states to try to boost their economies by diversifying their sources of income in beside oil.
He explained that the political tensions within the region contributed significantly to the persistence of the crisis and to lower oil prices that reached $60 per barrel.
Al Hadari stressed that reliance on sovereign funds, which exceeded $900 million, will lead to economic shortage after running out of all these amounts, especially if the low-oil-price crisis lasts for years.
($1 = AED3.67, at the time of publishing)