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Wednesday, 17 January 2018

Oil in Gulf States

The discovery and the investing on oil commercially had a great economic and social effect

on the gulf countries. Oil become the main contributor  in the  generation of the national income, also oil become the main financier for gulf countries projects, and that made oil the main controller on social  and economic  development in the last forty  years.
Oil price in the middle of the seventies contributed in high level on the increases of the national income of gulf countries and that helps in the accelerating of social and economic development, gulf countries had established the basic structure,  the basic requirement and services, beside the huge development in the  communication sector, further more lots of industrial cities had been established fitted with basic requirements to motivate and attract industrial investment.        
 Due to the  changes in the oil market  and the big decline in the oil price in the last 3 years, that cause large budget deficit in four gulf countries(UAE-Saudi Arabia – Oman- Qatar),  and that  force them to raise the oil prices so they can deal with the budget deficit.
It was necessary  to make those  decisions  but  most importantly  those countries need to deal with   the deficit in the budget in other ways  such as  executing  a new economic  model  that depend on different sources, also adopting  extra  tax  but the execution of it in all gulf  countries is not possible and that because of  economic inequality.