The effect of the decline in oil prices has extended to emerging economies, including non-oil countries, said EFG-Hermes Head of Research Ahmed Shams, during EFG Hermes 12th One on One Conference on Monday.
Meanwhile, the expected budget deficit in the Gulf states’ will speed up the introduction of economic reform programmes, Shams conjectured.
Shams noted that the focus of the past year’s meeting was on GCC member states’ concerns over the economic effect of oil prices falling to less than $50 a barrel. However, with the continued decline to $35 a barrel, losses have hit markets internationally.
However, Shams noted that the introduction of economic reform programmes in the Gulf and the diversification of sources of income will have a positive impact in the long-term.