InvestorQ : Why has the IMF made a statement that Gulf Countries could see a massive depletion in their wealth in next few years?
ishika Banerjee made post

Why has the IMF made a statement that Gulf Countries could see a massive depletion in their wealth in next few years?

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Niti Shenoi answered.
8 months ago
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This has to do with the oil prices and the inability of the Gulf nations to find an alternative to oil. The IMF has estimated that the Arab Gulf states may lose substantial part of their financial wealth in the next 15 years. The Gulf States currently account for 20% of the world oil supply and their net financial wealth is estimated at $2 trillion. This wealth depletion, according to the IMF, is likely to be driven by weak oil prices and their inability to ramp up non-oil revenues. Most of the Gulf States have spent billions of dollars on welfare by leveraging their oil revenues. IMF estimates that global oil demand could peak by 2040 and if these nations are not able to fix fiscal issues, wealth depletion would accelerate. That is when the real problems for the Gulf nations could start.

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