gulfnews : The effect of rising oil prices on GCC budgets

Annual budgets are especially important in Gulf Cooperation Council (GCC) countries because of the huge economic and social role played by the state. Budgets in these countries are also important because spending through the annual budget is still the main driver of GCC countries' economic activities.
Hence, the business and economic world waits for the announcement of GCC countries' annual budgets to understand the direction of economic growth, especially as most infrastructure plans pass through the budget's projects item.
Since 2003, with the huge rise in oil prices which make up 80-90 per cent of these budgets' incomes, GCC countries said goodbye to annual deficits in their budgets which accompanied them throughout the 1990s. Thus, the tables were turned and surpluses have become a constant feature for GCC countries' budgets ever since.

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