ABU DHABI Ñ Qatar has warned of a collapse of the economies of oil-producing countries in the Middle East.   

Qatar's government has projected that the drop in oil prices reflected long-term economic decline.

Officials said oil prices, amid a drop in demand, were not expected to return to anywhere near the level of mid-2008.

"For the first time in a quarter century, world demand for oil is falling," Qatari Energy Minister Abdullah Bin Hamad Al Attiyah said. "The price has collapsed since July 2008."

Addressing the Asian Ministerial Energy Roundtable in Tokyo on April 26, Abdullah said the economic stability of oil producers was under threat, Middle East Newsline reported. He said companies have been suspending investment plans in energy.

"Low prices and the resulting drop in income of producing countries is creating problems for their economic stability and investment in additional capacities essential for the future," Abdullah said.

"The illiquidity of global financial markets is also making it difficult for companies to invest, even in high-return projects."

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