(MENAFN) Despite the continuous decline in the global market for the prices of oil causing some concerns in regards to the economy of the countries of the GCC, these countries are expected to be able to withstand the decline due to their accumulated surpluses from previous years, Gulf News reported
These surpluses are forecasted to be used to finance the GCC's intensive public spending plans, which as shown in the newly released budgets of Saudi Arabia, Dubai and Oman, are perceived to remain high despite the drop in oil prices, which is projected to reduce GCC's hydrocarbon export receipts from a peak of USD743 billion in 2012 to about USD410 billion in 2015.
Saudi Arabia, for example, said in its budget that it would accumulate revenues of USD190.7 billion in 2015 whereas expenditures are estimated at USD228.42 billion resulting in a fiscal deficit of USD38.51 billion, while Dubai unveiled a balanced budget at USD11.2 billion, which is its largest budget since the global financial crisis and registering a growth of 9 percent compared to its budget in 2013.
Meanwhile, overall GCC's GDP growth is projected at 3.4 percent in 2015, as compared with 4.1 per cent in 2014, while their combined fiscal balance will change from 4.8 percent of GDP in 2014 to a deficit of 2.1 percent in 2015.
"Overall, we remain broadly positive on the main GCC economies, UAE, Saudi Arabia and Qatar. OPEC's GCC producers were central in the decision not to lower the bloc's output ceiling, which reflects their economic strength and ability to compete for market share, in our view. Low debt and strong reserve positions allow these countries to further their central developmental objectives, and we do not see a major change in their stance at this point," Chief Economist of Abu Dhabi Commercial Bank said.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.