Lack of diverse income ensures collapse.
IRENA 20 [International Renewable Energy Agency; (IRENA) is a lead global intergovernmental agency for energy transformation that serves as the principal platform for international cooperation; 04/04/2023; “Low oil prices drag Middle East economies to collapse”; https://www.proquest.com/docview/2385912526/citation/8D09E65B454D4595PQ/1?accountid=14667] iman
The low oil price environment in the global market is dragging the Middle Eastern oil-producing countries to collapse, whose economies are strongly dependent on crude oil production and exports.
Due to the novel coronavirus (COVID-19) keeping global oil consumption weak, and the oil price war between Saudi Arabia and Russia, crude oil prices are fluctuating below $30 per barrel since March 6 when OPEC and non-OPEC nations failed to reach an output curb deal.
Low crude prices are seriously threatening most oil-producing countries in the Middle East and North Africa (MENA) who need higher oil prices to balance their budgets.
Nigeria needs a breakeven price of $144 per barrel of Brent crude on average to balance its government balance this year, while Bahrain requires $96 a barrel, according to data from global rating agency Fitch Ratings.
Saudi Arabia, OPEC heavyweight and the world's largest crude exporter need a breakeven of $91 per barrel, while Oman needs $82 a barrel, Abu Dhabi requires $65 per barrel and Qatar needs $55 a barrel, the data shows.