“The GCC is home to about 30 percent of the world’s proven oil reserves. West Texas Intermediate slid to $39.86 per barrel on Friday before closing at $40.45 per barrel on the New York Mercantile Exchange, its lowest close since 2009. WTI may decline to $32 on the persisting surplus, Citigroup Inc. said Wednesday. Dubai stocks edged closer to a bear market, having fallen 16 percent since the benchmark measure hit 2015’s peak in April,” reports Bloomberg.
With oil prices sliding, there is speculation that members of the Gulf Cooperation Council (GCC), of which the UAE is one, could be forced to trim government spending, in the process hampering the ability of these economies to withstand lower crude prices.
GCC member countries are home to about 30% of the world’s proven oil reserves, according to Bloomberg.
iShares MSCI UAE Capped ETF
