PwC Middle East published a report by economic expert Richard Boxshall that public wage bill, which is higher in the Gulf than in developed countries, is not related to service quality due in part to the lack of incentives for execution and the negative impact of attractive government jobs About the labor market in the private sector.
The Gulf states have taken some measures to address the public sector employment system whose economic viability is falling day by day and some countries cost about one-fifth of GDP, double the average in the Organization for Economic Co-operation and Development (OECD) ). In addition, some states have reduced public sector pension funding, which has led to increased efforts to launch new employment in the private sector.
In Kuwait, the Public Service Bureau is working to implement aggressive strategies to reduce the number of expatriates in the public sector, including an initiative that requires most of Kuwait's administrative functions.
This edition of the Middle East Economic Review deals with the impact of the surge in oil prices in the first half of the year, which has led to differences between OPEC member countries regarding the organization's strategy and the relative ambiguity in the results of the Organization's meeting last June. Despite the above, most of the countries that can produce it have increased.
"The Middle East has made significant developments in recent months. Among the major developments for Saudi Arabia and other oil-exporting countries is the impact of higher oil prices at higher than expected levels for public finances and is expected to increase government spending spending and economic growth ".
On the other hand, oil supply remains low and increased compliance and rising crude oil prices have led to pressures from the major oil-producing countries and the recovery of US oil production, which almost offset the projected cuts in production . OPEC must now avoid another circle of arm and bust. In July, most countries with additional production capacity increased their production. Due to the continued decline in Venezuela's production in August, the problem of increased compliance reappeared. The overall drop in production during the summer helped push prices higher than $ 80. Although the fall in prices is back, the overall year is likely to be higher than expected prices and revenues, boosting the country's economic situation and boosting confidence in Gulf economic growth.