The fall in the price of oil this week has put further pressure on fiscal positions in the Gulf, and most governments are likely to run large budget deficits over the rest of this year. For now, dollar bond sales seem to be the preferred way of financing these shortfalls. Elsewhere, Oman, Bahrain and Jordan have laid out plans to reopen tourism sectors. But with coronavirus outbreaks in the region worsening, there is risk that policymakers could be forced to reverse course, causing the economic recovery to stall.
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