Rising oil prices revive Qatar and Kuwait, big loss for Saudi


Qatar and Kuwait will benefit most from rising oil prices in the coming years, while Saudi Arabia will be engulfed in its external debt, which has risen in the past two years, a US report showed.

The report, issued by CNBC National Economic Corporation, based in New York, said that Qatar would reap a set of gains following the oil break of $ 60 a barrel, its highest level in more than two years.

He pointed out that the most prominent gains are the increase in public revenues, indicating a financial surplus, especially since the current prevailing price and the expected exceeds the price of parity (the price that balances balance of revenues and expenditures) of $ 51 a barrel.

In addition to Qatar, CNBC National reported that Kuwait benefited more from oil price increases, especially with its steps to diversify the economy and income sources.

On the other hand, it is likely that the Saudi economy will witness a significant contraction in 2018, following the recent economic decisions, which had negative results unexpectedly.

Saudi Arabia’s plan to reduce unemployment among Saudis by imposing surcharges on expatriate workers, as well as taxes on consumption, has significantly affected companies and consumers as the growth of the non-oil economy slowed as demand declined.

Riyadh has resorted to borrowing from global and domestic capital markets while trying to cope with low oil prices. Saudi Arabia’s total budget deficit since 2014 has so far exceeded $ 200 billion.