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Saturday, 27 December 2014

A chance for GCC to speed up economic reforms |

A chance for GCC to speed up economic reforms |

"There will not be a soft landing for the Gulf economies as the year closes, given the backdrop of the sharp slide in oil prices. Nevertheless, some sort of recovery in prices cannot be ruled out in 2015, led by factors such as global economic growth, the weather and sociopolitical developments.

The market psychology could change and with it feeling of participants, which could lead to the emergence of positives for the oil market.

Fortuitously, GCC states have the necessary cushion, as illustrated in the size of their sovereign wealth funds that can be called in to deal with adverse developments stemming from uncertainty in the oil sector. According to the Sovereign Wealth Institute, the GCC collectively controls a staggering $2.4 trillion of such funds, or 37 per cent of the world’s total. Clearly, there is no shortage of funds for dealing with declining oil revenues."

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