Arab Today, arab today low oil price chance for gulf economic reforms
Last Updated : GMT 06:16:56
Arab Today, arab today
Arab Today, arab today

Low oil price chance for Gulf economic reforms

Arab Today, arab today

Arab Today, arab today Low oil price chance for Gulf economic reforms

Oil prices have shed about 75 percent in 18 months due to a supply glut
Davos - AFP

The sharp drop in the price of oil, the lifeblood of Gulf economies, is an opportunity to end subsidies and introduce reforms in the energy-rich region, ministers said Friday.

"With low prices... it is the right time" to cut subsidies on oil products, Kuwait's Finance Minister Anas al-Saleh said at the World Economic Forum in Davos, Switzerland.

In a panel on the future of economic reform in the Arab world, Saleh -- also Kuwait's acting oil minister -- said that record low oil prices would make the lifting of subsidies on fuel products easier on consumers.

"We saw an opportunity to have people do the right thing, which is to pay the right cost of energy," said Emirati energy minister Suhail al-Mazrouei.

"We need to rethink about major reforms that make our budgets independent from oil revenues," he added.

After liberalising fuel prices in June, Mazrouei said the United Arab Emirates is looking into lifting subsidies on other products and services, including on electricity.

"That's not healthy," he said, speaking of gas sold to electricity providers at subsidised rates, stressing the need to "apply international prices".

The head of Bahrain's Economic Development Board, Khalid al-Rumaihi, went further, describing the sharp drop in oil revenues as a "blessing in disguise," because it provides an "opportunity for reforms".

He named fiscal reforms and widening the economic base in Gulf countries as potential outcomes of lower oil revenues, which represent the bulk of receipts for most Gulf countries.  

Saleh argued that governments will need to formulate a way to help needy citizens when oil rebounds.

"What if it goes up again? We'll have to look at rationalising subsidies... to those who need" them, he said.

Unlike Kuwait and UAE, Bahrain is a minor oil exporter. It recently cut subsidies on diesel and petrol.

Kuwait began selling diesel and kerosene at market prices at the start of 2015, and on Thursday its emir announced plans to raise the prices of petrol, electricity and water.

Saudi Arabia, the world's largest oil exporter, also took unprecedented measures to cut subsidies on energy products, as it posted a record budget deficit of $98 billion (90 billion euros) in 2015.

The International Monetary Fund has urged the Gulf monarchies to cut their subsidies' bills as their revenues shrink.   

Oil prices have shed about 75 percent in 18 months due to a supply glut, weak demand, overproduction and a slowing global economy.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today low oil price chance for gulf economic reforms Arab Today, arab today low oil price chance for gulf economic reforms

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 04:54 2017 Saturday ,18 February

Oil prices slip as high stocks overshadow OPEC cuts

GMT 21:38 2017 Thursday ,16 February

Kuwait Oil Price Down 25 cents to $52.30 pb

GMT 14:40 2017 Thursday ,16 February

OPEC daily basket price announced for Wednesday

GMT 19:14 2017 Wednesday ,15 February

Gasoline, diesel prices increase 100 L.L.

GMT 04:39 2017 Wednesday ,15 February

Oman Crude Oil Financial contract closes at US$55.45
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday