GCC nations remain reliant on oil revenues
Saudi Arabia and Kuwait most reliant on hydrocarbons
The group of GCC nations is still hugely reliant on oil and gas revenues, with Saudi Arabia and Kuwait the most dependent on hydrocarbons.
A report by Alkhabeer Capital found that hydrocarbons have helped the GCC economies outperform their global peers, growing by about 24% a year from 2008-2013.
Hydrocarbon revenues in Qatar and UAE account for close to 60% of the total revenues of the countries, however in Saudi Arabia and Kuwait, the figure is close to 90% and 93%, respectively.
This is in contrast to other resource rich economies such as Norway, where revenues from oil account for just about 30% of government revenues.
“The low contribution of the non-hydrocarbon sector primarily reflects the policy decision of maintaining a low or zero-tax environment to assist private sector activity,” said the report.
“Although there has been speculation of introduction of GCC-wide value added tax, we do not expect such a decision in the foreseeable future.”