The GCC States Offer
GCC is also known as the Gulf Cooperation Council, which is made by some states. The states of which it consists are; UAE, Bahrain, Saudi Arabia, Oman, Qatar, Kuwait, and Yemen. The headquarters of the said organization is in Doha, Qatar. The lowering of the price of oil is still in process by the GCC. The main purpose is on the decreasing of the expenditure. Just to tell you, this is very important, however, this is also flawed due to the growth of non-oil. It is increasing but still, the process is said to be very slow. The policy about the fiscal is being modified; however, the direction in which it will go is still in considerations. The states have to offer their own policies, which can be described as;
What Bahrain Has To Offer:
Bahrain being the weakest of GCC has yet to offer much as the growth in the said country and the deficit are tantalizing. Even with the measures towards the betterment of the fiscal, it still is very weak and cannot offer much due to its bounded financial savings. It is to be expected that the economic growth will decrease in the future because of the lowering of the rate of the oil, which causes loss to the government. The development is also stalled due to the lower financial savings. However, the growth will continue to fall until proper adjustments to the fiscal. If the adjustments are not made then the betterment will not spread it will remain the same.
What Kuwait Has To Offer:
The growth in the sector of non-oil has increased but the growth is even slower than before 2014 and the speed of growth is slow. The economic growth can be observed and it has increased by almost three percent and it is all due to the manufacturing of plan to develop. The recovery of the prices of oil had lessened. The part of the bank has also improved and the structures being developed will not stop in the supporting. There are minor problems, which the country still faces. In 2016, the government had planned to invest 115 billion dollars in the field of the oil so that a boost in the said field is to be expected near about 2018. Due to which the growth will also rise and the pressures of the budgets will potentially decrease.
What Oman Has To Offer:
Oman is not in a good shape as the lessened prices of oil are still pressurizing and decreasing the growth of the economy. The agreement of OPEC has caused the growth to be even decreased and this is not going to get better soon. The fiscal deficits are not suitable and are holding the gap, which is causing the growth to be hampered immensely, and its approach towards getting the help from outside has severely increased. It is expected that the growth may pick up the speed in 2018 through the tourism. The growth has not been better even in 2017 and many of the factors like electricity are going to be more hampered. The growth is only expected to be better and not perfect.
What Qatar Has To Offer:
Conditions are moderate for Qatar as the prices of global energy have stayed due to which there is not much of a betterment in the growth and the government is not spending too much because of the hurdles which may arrive in the future, like the 2022 FIFA World Cup. It will take a lot and that is why government varies it. The conditions are not too bad and it still cannot offer anything at the international level. The growth has not been increased since 2016 due to the hydrocarbon area where the results are actually not that good. Qatar is in the process of the making the approach so to host the World cup, which will take a lot of toll on them and it is going to take a lot. In addition, even in the future, the betterment cannot be shown due to the pending factors.
What Saudi Arabia Has To Offer:
Many challenges are being faced by the country as they are suffering from the low oil prices. However, to improve the conditions of the economy, the ways to improve the financial conditions are improved and the reforms are being made so to defend against the growing challenges. A little improvement is made but it only a little. The economic growth has decreased further in 2017 but the ways to recover from the loss have also been devised. The annual growth is moderate and is showing the chances of increasing and the economy will gradually recover from the bumps.
What UAE Has To Offer:
The oil production cuts have limited the growth considering UAE, growth is not permanently down and eventually, the increase in growth is also expected in the mid of 2018 as the expos and tourism sector increases. However, the risks of blowing winds on which they have no control are endangering them but even so that is not massive. UAE is the most stable out of all in GCC and can probably help others. The oil production is eventually expected to increase in 2018 and the economic growth will eventually rise.
The states of GCC have yet to offer anything to the world due to their conditions not being too good. All of the states have passed through a tough time in 2017 and are expecting changes in the growth in 2018. However, UAE and Qatar are the most stable states right now and they are still seeking for more growth. However, they can only provide what they have been from the start and not anything new due to their situations as they have passed through difficult situations in 2017. These only show that states of GCC are not prospering like they should be and are really down to earth. It can be evaluated that if these states were to be passed through a turn down then they will take much in repairing themselves, as they don’t have the facilities to defend them.
Advantages of Gulf Cooperation Council Union and its Monetary Union Policy