Free / Subtitles - Washington
03 September 2020
International Monetary Fund: Kuwait's exports of oil and gas this year are set to halve
The new scene produced by the current crisis is almost a precedent in the modern history of the Gulf states, "so you find them slowing down in adjusting the habits of huge spending," according to Bloomberg .
Bloomberg site monitored the reality of declining fuel income in the Gulf countries, especially Kuwait, whose Finance Minister Anas Al-Saleh warned in 2016 that the time has come to cut spending and prepare for life after oil.
Four years later, Kuwait, one of the richest countries in the world, is already struggling to make ends meet, as the sharp drop in energy prices raises deep questions about how the Arab Gulf states are managing the current crisis.
Maryam Al-Aqeel, who succeeded him at the helm of the ministry, proposed last January, before her departure from the ministry as well, to restructure the public sector wage bill, which is the biggest obstacle to the state's public finances.
Her replacement, Barak Sheitan, who took over the ministry in February, warned for his part that there was not enough money to pay the salaries of state employees after October.
Head of Bensiri Company for Political and Financial Communications, Fawaz Al-Sarin, commenting on what is happening in Kuwait, "We will wake up one day and realize that we spent all our savings, not because we did not verify our bank account statement but because we looked at it and said, maybe there is a bank defect, then we bought The latest Rolex watch ", referring to the wobbly running of the country.
free fallThe International Monetary Fund said that Kuwait's exports of oil and gas this year are set to fall to nearly half their highest levels in 2014.
The price of a barrel of oil was $ 40, but it is still very low, compared to the period before the Russian-Saudi conflict, which days preceded the start of the new Corona virus pandemic.
For its part, Saudi Arabia is trying to curb interest and impose taxes to cope with the dire financial situation.
In Bahrain and Oman, where reserves are less abundant, the two countries are trying to borrow and seek support from their wealthier neighbors.
Bloomberg, took Kuwait as a vivid example of the crisis facing the Gulf states and said that they are still dependent on fuel for 90 percent of their income.
The state employs 80 percent of Kuwaitis who are paid more than their counterparts in the private sector.
The housing, fuel and food benefits can total $ 2,000 per month for the average family.
Salaries and subsidies absorb three-quarters of state spending, which is heading to the seventh consecutive deficit since the oil recession in 2014.