Report: Oil accounts for 79 percent of Gulf states' income
ABU DHABI — Gulf Cooperation Council states have been urged to tax crude oil
proceeds to diversify their economies, according to a new report.
The McKinsey Quarterly said GCC crude oil and natural gas earnings rose
from $200 billion in 2002 to $325 billion in 2006. The report said the oil
sector
was responsible for 79 percent of the Gulf states' income in 2005.
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Oil revenues accounts for 92 percent of Kuwait's budget. Qatar has the
lowest proportion of oil to total revenue, at 64 percent, Middle East Newsline reported.
Analysts urged GCC states to tax oil revenues in a drive to diversify
their economies. They cited the current oil boom as an opportune time to
impose such a tax.