[size=30]Bloomberg: An "unimaginable" crisis threatens Saudi Arabia![/size]
Bloomberg writer David Fckling saw that the Gulf states were previously able to "ride" the oil wealth, but that Saudi Arabia and its neighbors may face serious financial problems in the near future.
"The current price war in the oil markets will only accelerate the approach of that moment when a harsh statement of the nature of the Gulf economies will be revealed," Fickling wrote in this regard.
For example, the writer cited the conditions of the financial assets of the Saudi government, the reserves of the Saudi Central Bank of gold and currencies, plus sovereign wealth funds, minus government debt, and pointed out that "it decreased and constituted only 0.1% of the gross national product, and during the four years to 2018, it reached 50% ".
According to the International Monetary Fund, over the same four years, the net financial assets of the six Gulf countries fell by about half a trillion dollars, to reach two trillion dollars.
Fekling concluded that "if there was no peak in oil demand before 2040, then the remaining amount, according to IMF experts, would expire by 2034".
The writer also noted that "if the cost of oil reaches $ 20 a barrel, these assets will be depleted faster, and the treasury of these countries will be empty by 2027."
According to the International Monetary Fund, the author noted that if the price of oil stopped in the range of 50 to 55 dollars, the reserves of gold and foreign currencies in Saudi Arabia would be reduced to the equivalent of five months of import spending in 2024.
He stressed that such an option is very worrying, because the kingdom may find itself in just a few months in a "staggering crisis", and will have to abandon the fixed exchange rate of the dollar, which has supported global oil trade for an entire generation.
Fckling mentioned that the Gulf countries need to increase oil prices to ensure balanced budgets.
Although the central banks of the countries of this region and the sovereign funds have accumulated sums that will help them deal with this type of crisis, low oil prices can lead to their rapid exhaustion.
The author drew a dark picture of the future of the Gulf states, noting that the countries of the region "were able to saddle and ride a wonderful wave of wealth for about half a century, but any wave will eventually be broken, and future generations will not see the wealth that the Gulf countries enjoy today."