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.