How GCC countries could re-calibrate their strategies due to low oil prices: Deloitte

How GCC countries could re-calibrate their strategies due to low oil prices: Deloitte

The dual crisis engendered by the conflict over production levels within OPEC + and the reduced demand caused by the COVID-19 pandemic have prompted a global, sector-wide downturn in the oil and gas (O&G) industry that has left oil-dependent economies vulnerable in terms of fiscal revenue.

Demand for oil has fallen by over 18% since the beginning of the year, leading to a steep decline of more than 70% in the price of oil. Deloitte has just released its new report, "Impact of oil industry crisis on the GCC and potential responses", which explores the responses GCC countries can take to address the impact of the oil industry crisis on their economies.

"The oil industry is facing its gravest crisis in 100 years, leading to a steep decline in fiscal revenues for many countries in the GCC. With the global economic downturn signaling lasting reduced oil prices, we looked at whether some countries in the region, particularly Saudi Arabia, would benefit from re-calibrating their visions by prioritizing the most resilient transformation programs to stimulate their future economies,“ explains Bart Cornelissen, Monitor Deloitte Partner, and Energy, Resources & Industrials Leader at Deloitte Middle East.

The Deloitte report finds that GCC economies have different options