(MENAFN) The members of the Gulf Countries Council are focusing their efforts on diversifying their economies away from the hydrocarbons, particularly as the global plunge in oil prices persist, which already resulted in oil prices losing almost 50 percent of their value since June, Gulf News reported.
The decline in crude prices, going from more than USD100 per barrel to USD48 its lowest in 6 years, have led the some GCC countries to draw budgets predicting a deficit in countries like Saudi Arabia and Oman, while leaving the UAE, which derives only 30 percent of its GDP from crude, to give a balanced budget for 2015.
The diversification efforts of these countries will focus on different sector and methods, like sovereign funds, which provide some countries with ample funds like Qatar's Investment Authority (QIA), mega infrastructure projects like the upcoming port in Oman or a railway project in Kuwait, as well as the focus that the GCC is pacing on their non-hydrocarbon sectors.
As these efforts continue, the city of London through its mayor, who is currently visiting the region, said that they are ready to offer all sort of instruments to finance infrastructure projects in case of any short fall, as well as any advice to help with these efforts, as he plans to meet members with senior members of the government, the Governor of the UAE Central Bank, investment authorities and senior business leaders during his visit.
"They have made big budgets on a predicted oil price, which is considerably higher than the existing oil price. So the question is Plan A is that there is no problem at all and they will continue with ongoing infrastructure projects as most of the Gulf countries has a lot of reserves to continue with the infrastructure spends, however you'll be spending country's treasures effectively. They will be all working their plan B, and the question is how will the Plan B look like?," The Mayor Lord of London said.
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