What might decreasing oil revenues mean for the Persian Gulf oil states? With low crude prices, high supply, and global economic challenges, it is natural to wonder whether the level of dependence on petrodollars by Saudi Arabia and the other Gulf Cooperation Council (GCC) countries bodes ill for their future.
Perhaps the most predictable outcome of the current oil glut is that it spells doom for the Arab oil monarchs, who will no longer be able to provide their citizens with massive payouts and social welfare benefits. However, a look at the realities of the GCC states—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—shows this outcome is far from certain.
Instead, as petrodollars become less of a global force amid specific domestic policy dilemmas, changes are likely to be more noticeable on the regional and global levels.
