Gulf's financial wealth could be over in 15 years!!!

[BetterDaysAhead]

DUBAI (Reuters) - The International Monetary Fund (IMF) said on Thursday Gulf Arab states — some of the world’s richest countries — could see their financial wealth depleted in the next 15 years amid lower hydrocarbon revenues if they don’t step up fiscal reforms.

The six-nation Gulf Cooperation Council (GCC) - whose net financial wealth the IMF estimates at $2 trillion - accounts for over one fifth of global oil supply, but economies in the region have been hit hard by a drop in oil prices in 2014 and 2015.

While lower crude prices have put pressure on governments to generate non-oil revenues and fix their finances, “the effect of lower hydrocarbon revenue is yet to be fully offset,” the IMF said in a report.

“At the current fiscal stance, the region’s existing financial wealth could be depleted in the next 15 years,” it said.

The Washington-based international crisis lender said global oil demand could peak by around 2040 or much sooner in case of a stronger regulatory push for environmental protection and energy efficiency.

“All GCC countries have recognized the lasting nature of their challenge ... However, the expected speed and size of these consolidations in most countries may not be sufficient to stabilize their wealth.”

Gulf states have for decades used their energy wealth to provide millions of citizens with government jobs, part of a social contract by rulers that rewards political acquiescence and educational attainment with employment for life.

But high-paying public sector jobs that demand little of workers have translated into low productivity and an entitlement culture, as well as rising costs as populations grow.

Budgets are stretched further by hefty state spending on subsidies, social services and generous state pensions.

GCC governments have only gradually introduced austerity measures to avoid social discontent, such as the introduction of a value added tax (VAT) in some GCC countries. But most continue to struggle to balance fiscal consolidation and growth.

The IMF said the introduction of VAT and excise taxes was positive: “There is significant potential to build on this progress.”

“As the region transitions toward a non-hydrocarbon economy, moving from wide-ranging fees toward fewer broad-based taxes, for example, could provide much-needed revenue diversification.”

Kuwait - which has one of the world’s biggest sovereign funds - could need some $180 billion in financing over the next six years in the absence of more drastic fiscal measures, the IMF said last month.

Saudi Arabia, the Arab world’s largest economy and the world’s largest crude exporter, expects a deficit of $50 billion this year, up from $35 billion in 2019.

https://hiiraan.com/news4/2020/Feb/167056/gulf_s_financial_wealth_could_be_over_in_15_years_imf.aspx

 

[Maximus]

Papa America will be like:

 

[Crow]

Looking forward to it.

 

[HanadR6]

Somalia will take over inshallah

 

[Samira]

We are Islamically obligated to give then sadaqa when that happens. We must be prepared

 

[Awdalia Rising]

So basically Somalia extracting oil is useless since small Arab countries with populations of around 2-8 million are struggling with their economies? What good will it do Somalia with around 15-20 million population ? Maybe we won’t be able to build cities up to the shiny Gulf Arab level skyscrapers and instead use oil money for middle level development and social programs for the poor population BUT we are a very corrupt people so in reality we might end up with little or mid level development and no social programs on account of politicians stealing money

if they are willing to steal aid money why wouldn’t they steal oil money?

 

[HanadR6]

So basically Somalia extracting oil is useless since small Arab countries with populations of around 2-8 million are struggling with their economies? What good will it do Somalia with around 15-20 million population ? Maybe we won’t be able to build cities up to the shiny Gulf Arab level skyscrapers and instead use oil money for middle level development and social programs for the poor population BUT we are a very corrupt people so in reality we might end up with little or mid level development and no social programs on account of politicians stealing money

if they are willing to steal aid money why wouldn’t they steal oil money?

Question: do you think somalia is better off colonised than independent?

 

[Awdalia Rising]

Question: do you think somalia is better off colonised than independent?

deffo colonized. Some clans can’t handle power or know what to do with it. As long as clans exist we either need colonization or a real dictatorship not the clown show Siad was running.

 

[HanadR6]

deffo colonized. Some clans can’t handle power or know what to do with it. As long as clans exist we either need colonization or a real dictatorship not the clown show Siad was running.

Completely agree, you'd think one day a kid born and raised in the west will take over somalia, but unfortunately that's not the case, 90% of these kids are qabilists.

What makes you think there'll ever be a non-qabilist dictator?
And if Somalia was colonised, who will colonize?, defo not the USA

 

[Awdalia Rising]

Completely agree, you'd think one day a kid born and raised in the west will take over somalia, but unfortunately that's not the case, 90% of these kids are qabilists.

What makes you think there'll ever be a non-qabilist dictator?
And if Somalia was colonised, who will colonize?, defo not the USA

because qabilism is in our DNA we have two options colonization or dictatorship. For dictatorship we can’t have a dictator from a clan that has cuqdad against others clans so we need a dictator from a noble clan like Samaroon

there will never be non qabiilist dictator so we must choose from the clans with no cuqdad against other clans.

Somalia is already colonized by Turkey, Qatar, and the African Union

 

[HanadR6]

because qabilism is in our DNA we have two options colonization or dictatorship. For dictatorship we can’t have a dictator from a clan that has cuqdad against others clans so we need a dictator from a noble clan like Samaroon

there will never be non qabiilist dictator so we must choose from the clans with no cuqdad against other clans.

Somalia is already colonized by Turkey, Qatar, and the African Union

Yh I'd prefer turkey colonizing us tbh