The economic magazine “Med” confirmed that the State of Qatar still has the highest score in the economic recovery index from the repercussions of Corona, as it ranked first, followed by the UAE second.
Saudi Arabia ranked fourth, then Bahrain, while the Sultanate of Oman ranked fifth, and Kuwait ranked last in the Gulf.
Qatar’s revenues from natural gas “the secret”
The Abu Dhabi-based magazine said on Sunday that Qatar’s revenue dependence mainly on natural gas, not oil, made its financial position more robust.
Qatar, the UAE, and Saudi Arabia approved large support packages for the government and private sectors, which helped absorb the stagnation that dominated all areas of the economy, while the response of other countries was less strong.
Immediately after the outbreak of the pandemic, the Qatar Central Bank decided to support the affected companies with 3 billion riyals ($ 824 million) and a maximum of two million dollars for each company, to be paid in parts every 3 months, to be paid over 3 years, starting after the end of the first year.
The magazine said that the continuation of the pandemic revealed a sharp contrast between the countries of the region, as certain countries responded strongly to the repercussions of the epidemic, while others were less prepared to confront.
She pointed out that one of the most worrying signs regarding the profound impact of the global crisis on the region is the increasing unemployment numbers in almost all countries, including the Gulf countries with historically low unemployment rates.
She pointed out that what is also worrying is the high number of regional sovereign ratings that have been downgraded by international credit rating agencies, pointing to the divergence of ratings of the GCC countries with prosperous economies.
Kuwait and Oman
According to the magazine, the economic performance that is heavily dependent on oil has caused concern, especially in Kuwait and Oman.
Kuwait and Oman experienced two of the most severe recessions in 2020, and are expected to have weaker real GDP growth rates in 2021, according to the International Monetary Fund.
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The problem is due to the two countries’ dependence on oil to a large extent, in addition to the financial imbalance, and the severe blow represented by the weakness of the projects sector as a result of the reduction in government spending.
The Gulf countries made great efforts to confront the repercussions of the pandemic on the economy sector, which was severely affected by the decline in demand for oil and the collapse in crude prices in the months that followed the outbreak of the pandemic.
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