Fuel subsidy reforms to make only a modest dent in GCC deficits
Issue 1010
- 18 Feb 2016
| 1 minute read
The spate of cuts to petrol subsidies in the GCC states will lead to savings of around 1% of GDP, according to Moody’s Investors Service. That will help governments to reduce their ballooning budget deficits, but not by much: Oman and Bahrain are still both expected to run fiscal deficits of 17% or more this year, while Saudi Arabia’s is forecast to be around 15% and Kuwait, Qatar and the UAE are expected to come in at 9%-10%. The UAE was first to announce fuel subsidy cuts, last July. Since then most of its neighbours have followed suit – except Kuwait, which is expected to follow in March.
Don't have an account?
Register for access to our free content
An account also allows you to view selected free articles and set up news alerts.
Register