Tuesday, January 3, 2017
Lower global oil prices contributing to new tensions in both oil-producing and oil-importing countries.
Rapid population growth in most Arab countries has resulted in a youth bulge and higher unemployment. Oil producers face an extended period of low global prices, forcing them to cut costs. However, reduced subsidies on basic services risk breaching the social contract by which these governments maintain stability with limited representation. Net energy importers, while benefiting from lower fuel costs, are also struggling to compensate for declining remittances and to create new job opportunities as migrant workers return from the cash-strapped Gulf.