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FINANCIAL NEWS
Gulf to influence ME energy sector
25 Jan 2016
(MENAFN) Rising shortages and controlled government debts in the Gulf will have the major macroeconomic impact on the area’s energy industry this current year.
Moreover, economies in the Gulf, involving KSA and the UAE, face problem times in 2016 as the oil price hangs around the USD 30-per-barrel mark, hitting a 12-year low.
In addition, Saudi Arabia posts its biggest budget deficit last Dec at USD 86bn, equivalent to almost 16 percent of GDP, while Kuwait posts its first budget deficit in 15 years.
“In 2015, we saw that most of the Gulf countries took a budget hit from lower oil prices, but they kept spending relatively high and their economies kept growing,” said chief economist.
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