International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of Oil Prices on GCC Economies
Rubina Vohra

Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, and the United Arab Emirates comprise the Gulf Cooperation Council (GCC). They are all rich in oil reserves and a large part of their gross domestic product and economy is reliant on their ability to export oil at competitive prices to other nations. The GCC nations benefitted financially from rising oil prices from 2000 – 2007. Since 2008 they were also impacted by the sinking oil prices which have had varying effects on their budget and economic growth. This paper aspires to ascertain the forces underlying slowdown of growth, sharply falling revenues from exports, expanding budget deficits, and shrinking current account by establishing a link between economic growth, change in oil prices and the current account during 2000-2015.The study finds evidence of falling and volatile oil prices and economic growth as driving force behind growing budget deficits and dwindling current accounts in GCC nations.

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