‘Comprehensive salary’ to reduce dependency on oil revenues vital – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

SourceArab Times Kuwait
SectorOil & Gas
CountryGulf

Gulf economies to be exposed to risk of increasing turmoil KUWAIT CITY, April 6: Oil revenues constitute the lion’s share of Gulf government’s revenues, which allows them to maintain a low level of taxes. However, the large dependence of the citizens of Gulf countries on government jobs of low productivity has a detrimental effect on the private sector due to the decrease in specialized individual talent, reports Al-Qabas daily. Chief emerging market economist at Bloomberg Economics in Dubai Ziad Daoud said, “The economies of the Gulf countries will be exposed to the risk of increasing turmoil as the importance of crude oil diminishes in the global economy and its prices fall. Instead of governments paying huge sums of money on government jobs of low productivity, these countries should give their citizens a fixed monthly salary.

This may help facilitate the transition of these countries to the post-oil phase. Even before the COVID-19 outbreak, the International Monetary Fund expected the exhaustion of Gulf wealth amounting to about two trillion dollars by 2034. It indicated that the countries of the region will find it increasingly difficult to finance their budgets and maintain their pegs to the dollar, and the slowdown in job ...read more...