Region: Gulf (GCC)
This Agora Executive Briefing assess impact of the twofold crisis – the outbreak of the Covid-19 pandemic and the collapse of the oil price – for the countries of the Gulf Cooperation Council. Gulf Cooperation Council (GCC) countries still lack structural reforms to cope with the dual shocks created by Covid-19 and the slump in oil prices, suggesting governments still perceive the crises as short-term.
To ease financial stress, governments consider economic measures like capital from international markets, aid from neighbors or strategic partners like China, privatization and reducing expatriate labor force. Governments are hesitant to implement reforms affecting their own citizens as they fear to undermine political stability, rather expatriates will pay the price of budget cuts.