Growing risk of fiscal crises in the oil-poor Arab countries

One of the most striking – and often overlooked – developments in the Middle East and North Africa (MENA) following the Arab Spring has been the stark divergence in the fiscal health of the region’s resource-rich and resource-poor countries. While governments in the GCC have received a huge windfall from higher oil prices, their counterparts in other part of the MENA have seen budget deficits widen and public debt rise. In this Watch we take a closer look at the fiscal health of the region’s resource poor countries – and explain why, in the absence of external assistance, some may soon face a fiscal crisis.