The Saudi government is expected to intensify a program to employ Saudis in the private sector as weak oil prices bite into state finances.
Oil’s prolonged downturn would likely encourage Gulf states to divert funds away from global markets and focus on domestic needs.
The economic forecast for the Gulf region remains positive despite lower oil prices in 2015, according to a U.N. report.
UAE, Qatar, Kuwait and Saudi Arabia are among Bank of America Merrill Lynch’s top 10 emerging market picks for 2015.
Public spending will be the driving force behind support for bank lending, according BNP Paribas.
The price decline aligns with the falling scrap and iron ore prices internationally over the past few months, says the industry.
As the global economic conditions falter and regional tensions persist, MENA economies may face more headwinds in the New Year.