The Intelligence from The Economist Crude awakening: the Arab world after oil
Jul 14, 2020
Roger McShane, Middle East editor for The Economist, dives deep into the shifting tides of oil economies in the Arab world. He discusses how historic price fluctuations are prompting urgent reforms and diversification efforts in oil-dependent nations. The conversation also touches on the implications of a post-oil landscape for governance and social change. In a lighter vein, the rise of midwifery during the pandemic showcases changing attitudes towards childbirth, offering vital health benefits amidst evolving societal norms.
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Arab World After Oil
- Cheap oil impacts Arab world, forcing reforms and potential unrest.
- Fiscal break-even prices for oil are much higher than current prices, causing budget deficits.
Oil Producers' Struggles
- Algeria's break-even price is over $100, while oil is at $40, forcing budget cuts.
- Saudi Arabia, despite cash reserves, faces pressure to accelerate its Vision 2030 plan.
Ripple Effect on Non-Oil Producers
- Non-oil producing countries like Egypt rely on remittances from Gulf workers.
- Reduced Gulf spending affects trade, tourism, and budget support for these nations.
