dissertation attempts to explore the effects of low oil prices on both
Saudi Arabia and the UAE, in light of the recent 2014 decline in oil
prices that continue to decline today. Most significantly, low prices
seem to deteriorate fiscal positions, put pressures on fixed exchange
rates, hinder growth and cause worry as to the sustainability of
oil-exporting countries. This dissertation uses a mixture of literature
and secondary data to present its findings, drawing upon the fact that
Saudi Arabia should be of a higher focus due to the lack of economic
diversification and foreign exchange reserves that exist in the region.
Finally, this dissertation serves as an overall insight into low oil
prices, briefly looking at historical instances with a clearer focus on
the recent crisis. This dissertation will primarily use a historical
comparative method in evaluating and analysing the effects of low oil
prices on Saudi Arabia and the UAE.
This comparative analysis will consist of a considerable amount of
examination of secondary data, due to the proliferation of data that
exists on oil prices with specific reference to both the macroeconomic
and microeconomic structures of Saudi Arabia and the UAE. It is
noteworthy at this point is the dismal state of economic
statistics in the GCC in general, a situation that has been repeatedly
lamented by the International Monetary Fund, meaning that there has
been a lot of theory on this subject area as opposed to concrete data
that would portray the reality of the situation.