Analysis by Máté Szalai
The aim of the analysis is to interpret the economic effects of the dual crisis of 2020, namely the spread of the new coronavirus and the latest collapse of the oil price, on the states of the Gulf Cooperation Council. While the economies of the six monarchies are far from collapsing, the developments of the last few months have exacerbated the already existing structural challenges and placed enormous fiscal pressure on state budgetary policies. The most important effects of the dual crisis will be visible in the recalibration of national reform programmes, the acceleration of nationalisation tendencies in the labour market and weakening economic cooperation; nevertheless the strategy of the Gulf States, built on participation in economic globalisation and connectivity, will likely remain unchanged.