Economics
Crisis Austerity in Oil-Rich Gulf May Test Political Balance
- Gulf states roll back spending to counter pandemic downturn
- Crisis renews calls for reform of vulnerable economic model
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The coronavirus pandemic is hitting Gulf Arab economies hard and emboldening the region’s dynastic rulers to push through unpopular fiscal measures that will impact their citizens. The question now is how long their resolve will last.
Saudi Arabia, the biggest Arab economy, tripled its value-added tax and trimmed allowances for government workers. Oman cut salaries of new state employees.