What will happen when the Gulf countries’ oil runs out?
Rich gulf countries are being warned that the future is bleak unless they diversify and become less reliant on oil.
The International Monetary Fund has some advice for countries in the Gulf: Diversify, and diversify fast. The oil that made many Gulf countries extremely wealthy is not going to last forever. And the IMF’s 2017 report is predicting the worst growth rate for the region since the global financial collapse several years ago.
Economies in the region have been suffering since oil prices fell dramatically in 2014. Attempts to curb oil production have only slightly raised revenue. And the Gulf Cooperation Council diplomatic crisis that began in June has only made the situation worse.
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The IMF says Qatar and its blockading neighbours could have trouble finding investors if the crisis continues.
So what are the alternatives?
Presenter: Jane Dutton
Guests:
Jane Kinninmont, deputy head and senior research fellow at the Middle East and North Africa Programme at Chatham House
Cornelia Meyer, oil-and-gas specialist
Khaled Al Khater, specialist in monetary policy and political economy