Surviving the low oil price in the Middle East

 

Fiscal balances are deteriorating in Middle East oil-producing economies. The key to short-term survival is to have a significant reserve cushion and/or access to international capital markets to issue debt. Both reserves and access to international debt markets vary by country, so the question is: which economies face the most pressure?

The sharp decline in oil prices has hit government revenue in Middle East oil producing economies – some more than others, depending on the composition of the economy. Meanwhile, governments remain committed to high public spending. Sovereign fiscal breakevens provide an indication of the pressure currently exerted by low oil prices on a sovereign's fiscal position. For all countries in this assessment, fiscal breakevens are substantially higher than the current oil price.

In this infographic we present 2016 fiscal data for five major oil producers in the Middle East — Iran, Iraq, Kuwait, Saudi Arabia and United Arab Emirates.

For a full copy of the Middle East Sovereign fiscal breakevens infographic, please register your details below.


Middle East Fiscal

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