Lower oil prices over the last several years are a “blessing in disguise”

Lower oil costs in the course of the most recent quite a long while are a “surprisingly positive turn of events” that is constrained the “right conduct” from governments and the private division over the Gulf, as indicated by Khalid Al Rumaihi, the CEO of the Bahrain Economic Development Board.

Talking at the GCC Financial Forum in Manama, Al Rumaihi said that lower oil costs have guaranteed that “administrations need to take a gander at changing their income cost blend.”

“At the point when oil costs were at $100, you could bear to have spending plans that spent a specific way,” he said. “As oil costs declined, spending shortfalls have mushroomed everywhere throughout the Gulf and they’ve needed to alter in like manner.

“It’s driving the correct conduct. It’s constraining changes that ought to have occurred momentarily back.”

Khalid Al Rumaihi, the CEO of the Bahrain Economic Development Board.

For instance, he indicated Bahrain’s power segment, in which numerous Bahraini families and organizations have generally had financed power for which they pay extensively not exactly the expense of creation.

“What the administration did, shrewdly, was state that Bahrainis in their first house will keep on profiting by financed power,” he said.

“On the off chance that you have a second home, you’re truly wealthy and will end paying [the genuine market value]. In the event that you have a business, you ought to pay at any rate the expense of creation. It’s compelling individuals to pay the genuine cost of utilities.”

Financing businesses

Al Rumaihi included that “businesses are grumbling” about paying more without appropriations.

“In case you’re a steel producer and you can’t manage the cost of the feed stock cost, perhaps you shouldn’t  [operate]. Possibly it was an affectation for this nation. It might bode well for another nation,” he included. “We ought not be financing enterprises on the off chance that we won’t have an upper hand.”

Whenever utility costs will go up, he included, will happen in April 2019.

“We should value the utility as per cost and we should give the private area a chance to change,” he said.

Follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, to get all the latest business news from the UAE and Gulf countries, which is updated daily.

Get Amazing Stories

Get great contents delivered straight to your inbox everyday, just a click away, Sign Up Now
Email address
Secure and Spam free...

Get Amazing Stories

Get great contents delivered straight to your inbox everyday, just a click away, Sign Up Now
Email address