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Saturday, 5 March 2016

The benefits of Gulf’s reforms will be gradual |

The benefits of Gulf’s reforms will be gradual |

"The notion of economic reforms occurring on the back of a sustained low for oil prices is slowly — but steadily — gaining momentum across the Gulf countries. Most of the member states have assumed steps designed at re-engineering the subsidy programme, notably those on petroleum products.

The UAE took the lead by forming a committee to review, supervise and set prices at the retail level every month. The committee started its work by opting for lowering prices for several consecutive months in sync with the global level. The model is a notable one, as it takes into account what is prevailing internationally and makes the necessary adjustments locally.

Not surprisingly, some GCC countries are faster than others in implementing reforms. Kuwait lags behind others, ostensibly due to the country’s political structure, in turn requiring a compromise between the appointed and elected entities, respectively."

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