On the issue crude prices, which has led the UAE to withdraw subsidies on petroleum products, the minister said this issue is not only a challenge for oil producers like the UAE, but for many other countries who are dependent on it to fuel the progress of their economies.
Advertisement
The UAE’s oil sector is expected to see a slowdown of about 2-3 per cent if oil prices do not bounce back from the current levels below $50 a barrel, according to Ali Al Mansouri, chairman of Abu Dhabi’s Department of Economic Development.
“It is a gift to the world that oil has dropped to $50”, Al Mansoori said.
It has also mooted corporation tax, tax on remittances and a few others, to compensate for continued low oil prices which have hit revenues. “My colleague, the minister of energy, has indicated several times that they look at $80 as an ideal price for oil as we go on in the next phase”, said Al Mansouri, addressing a press conference to mark the beginning of the Global Agenda Summit.
In the previous year, oil prices have collapsed as US shale production surged while worldwide demand declined somewhat, pressuring a number of oil-producing nations including Saudi Arabia and the UAE, which had depended on higher prices to meet certain budget requirements.
“The world economy is definitely going to pick up”.
The UAE has a clear plan to reduce the share of oil in the economy by 10 percent within the next 15 to 20 years, he said.
Oil prices plummeted by more than 50 per cent in the last one year.
On Monday morning, the price of Brent crude oil, the global benchmark, was around $48 a barrel.
He further urged world economies to take advantage of low oil prices and build a momentum towards growth.
Advertisement
On Iran’s oil output coming on to the market after the lifting of sanctions and its impact, he said oil output is managed by production quotas imposed by the Opec.
