Wednesday, May 20, 2015

Oil subsidies of USD 300B/year threaten Middle East econonmy

atlantic council : "Middle East governments will spend up to $300 billion subsidising fuel costs this year, according to new calculations by the International Monetary Fund (IMF). That amount is equivalent to almost a third of all government revenue in the region. Large scale energy subsidies make little economic sense, according to the IMF, as producers are increasingly strapped for cash after a significant decline in oil prices. In the United Arab Emirates (UAE), steps have been taken to reduce energy subsidies, but the IMF has called for subsidies to be phased out completely. In Saudi Arabia, the IMF estimates that reserves will last only for the next six years at current spending rates. [The National, 5/18/2015]"

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