The UAE and other Gulf oil producers suffered from a combined asset loss of nearly $350 billion (Dh1.2 trillion) as a result of the global financial distress but their financial position remains strong enough to respond to faltering revenues and other repercussions, a major Saudi bank said yesterday.
After nearly seven years of an economic and fiscal boom, the six Gulf Co-operation Council (GCC) countries now face a difficult period as oil prices tumble, their crude output dives by more than two million barrels per day and global credits become scarce, the Saudi American Bank (Samba) said in a study sent to Emirates Business.
Given their heavy reliance on oil exports, the decline will likely turn years of fiscal surpluses into deficits in some members, while their economies will either plunge into a recession or sharply slow down this year, it said.
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