John K. Defterios, Anchor and Emerging Markets Editor, CNN International speaks during the 2012 of the World Economic Forum at the congress centre in Davos, Switzerland, January 27, 2012. (Wikipedia/Michael Wuertenberg)
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Saudi Arabia's roadshow to London, New York, Boston and Los Angeles to raise billions of dollars from international fund managers captured global headlines, but the path ahead to shore up its finances is littered with potholes.It is a similar challenge throughout the Gulf oil exporting states, according to the latest regional economic snapshot from the International Monetary Fund. Tucked inside its report was an alarming number, that non-oil growth is forecast to come in at 1.75 percent this year after averaging 7 percent between 2000-2014 .According to Standard Chartered bank, Saudi Arabia's budget deficit will remain stubbornly high this year at over 13 percent; tumble to 4.3 percent next year and about 1 percent by 2018 . The bank says the non-oil economy is now in recession and that the conflict in Yemen may be costing the kingdom over $250 million dollars a month. Despite efforts to wean the kingdom off its dependency on crude, a price recovery is essential to another key component of Saudi Arabia's 2030 plan, an initial public offering of Saudi Aramco in two years.
U.S. president’s uneasy alliance with OPEC
Shock and awe in Saudi Arabia
of the GCC
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