Regional Report: MENA

Low oil prices have resulted in reduced revenues for oil producers throughout the world, including those in MENA region. Even Saudi Arabia, which triggered the decline in prices with its decision to increase production as a means of retaining the country’s market share, has been forced to begin borrowing from capital markets, to the tune of $4 billion in July, 2015, with plans to raise a total of $27 billion for the time being. International Monetary Fund (IMF) estimates that $50/bbl oil will lead to a deficit of $140 billion for the Kingdom. Nevertheless, Saudi Arabia plans to keep its oil spigot fully open to continue to produce above 9.5 MMbpd, and expects its fellow OPEC member nations to follow in its footsteps.

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