Commodities
Oil Prices Cushion UAE, Oman from Regional Conflict Impact
The UAE and Oman are expected to experience stronger government finances this year despite regional conflict, thanks to high oil prices offsetting the impact of disrupted exports.
Capital Economics forecasts that budget balances will worsen by about 2% in Saudi Arabia, 5% in Kuwait and Bahrain, and as much as 10% in Qatar compared to last year.
The disruption to energy exports is expected to continue until early next year, with oil prices trading around $100 a barrel on Monday morning.
The UAE's strong foreign exchange reserves and sovereign wealth funds shield it from regional or global financial impacts, while Oman's increased oil output has improved its fiscal balances.