Energy subsidy reform in the Gulf is likely to be slow-going

Large energy subsidies in the GCC lead to a number of distortions in their economies, including smaller current account and fiscal surpluses as well as weaker investment in the non-hydrocarbon sector. Even so, subsidies remain a key part of the Gulf’s social contract and any efforts at reform are likely to be gradual at best due to fears of stoking social unrest.


Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.