COVID-19 brings to the fore GCC’s Fiscal Vulnerability

Revenue from oil forms significant portion of overall revenue for GCC countries, with 20-year(2000-2019) average at 74%. This dependence on oil as revenue source has long been a pain point for GCC’s fiscal position, surfacing during periods of low oil prices and receding during periods of high oil price.In the backdrop of fall in oil prices due to COVID-19, building a sustainable fiscal policy in GCC has resumed higher importance. Ascend to Prosperity Referred to as black gold, oil has propelled GCC economies to prosperity. Oil prices have been on the rise from 2000 to 2008supported by rise in globalization...

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