{"id":18197,"date":"2016-02-24T13:20:14","date_gmt":"2016-02-24T18:20:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18197"},"modified":"2016-02-24T13:20:14","modified_gmt":"2016-02-24T18:20:14","slug":"gulf-states-not-willing-to-cut-production-despite-asset-depletion","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18197","title":{"rendered":"Gulf States Not Willing To Cut Production Despite Asset Depletion"},"content":{"rendered":"

Gulf States Not Willing To Cut Production Despite Asset Depletion<\/a><\/h3>\n
<\/div>\n
\n
\n
The oil exporting countries of the Gulf Cooperation Council (GCC) are likely to report\u00a0twin deficits<\/a>\u00a0due to the downturn in oil prices and a supply glut that could expand, but even as assets are being depleted at an alarming rate none is in enough trouble to cut production.<\/div>\n
\n

According to the National Bank of Abu Dhabi (NBAD)\u2019s 2016 Global Investment Outlook, the region faces \u201csignificant asset depletion\u201d as it will have to further adjust to low oil prices, which the report estimates will remain between $25 and $45 for the remainder of the year.<\/p>\n

At the end of 2014, the countries of the GCC\u2014which includes Saudi Arabia, Kuwait, Qatar, UAE, Bahrain and Oman\u2014had about $3 trillion in net foreign assets. But by the end of 2015, they had divested some $210 billion in those assets, and the bank is predicting another loss of $180 billion in assets by the end of this year.<\/p>\n

The UAE<\/a>\u00a0has reduced energy subsidies and put non-critical projects on hold, and is also considering value-added tax (VAT), income and corporate taxes, privatizations and bond sales to add to government coffers.<\/p>\n

The UAE is faring better than others, according to NBAD because of its high financial reserves and its move to diversify away from oil and gas to some extent. Oil revenue makes up some 65 percent of the UAE\u2019s government income. And while countries that rely on oil exports alone for revenue will be further hit by the flooding of the market with Iranian oil, the UAE\u2019s diversified economy will benefit to some extent from renewed bilateral trade with Iran.<\/p>\n

The UAE\u2019s budget deficit is even expected\u00a0to improve 4 percent this year<\/a>. But the bank warns that UAE equities could be oversold, and \u201ccheap in terms of valuation\u201d, and the UAE currency, the dirham, might be overvalued by as much as 25 percent.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Gulf States Not Willing To Cut Production Despite Asset Depletion The oil exporting countries of the Gulf Cooperation Council (GCC) are likely to report\u00a0twin deficits\u00a0due to the downturn in oil prices and a supply glut that could expand, but even as assets are being depleted at an alarming rate none is in enough trouble to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[12294,4486,4485,12595,595,5332,600],"class_list":["post-18197","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-charles-kennedy","tag-gcc","tag-gulf-cooperation-council","tag-gulf-state","tag-oil-production","tag-oilprice-com","tag-opec"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18197"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18197\/revisions"}],"predecessor-version":[{"id":18198,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18197\/revisions\/18198"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}