How to Spend a $210 Billion Oil Windfall - Bloomberg:
"The significant rise in oil prices over the past year has big implications for the Middle East and North Africa (MENA), where hydrocarbons still play a pivotal role in the economy. Despite this change, it’s imperative that countries in the region stay resolved to cut their dependence on oil and make their economies more diverse and resilient. Just a year ago, crude was trading below $50 a barrel, amid stories of oversupply and tumbling prices. Today, it is pushing closer to $80 – a level not seen since 2014. It’s the strongest rally since 2011, the last time prices jumped by 60 percent in less than a year. So what impact does this have on MENA countries, and how should they respond? For most oil-exporting nations, higher crude prices mean windfall export and fiscal revenues. We estimate that MENA oil exporters will earn about $210 billion more in 2018-19 than they would have if oil prices had stayed at 2017 levels. Higher prices will probably boost confidence, helping spur growth and investment in non-oil industries – although heightened geopolitical risk could dampen that optimism."
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