The UAE and Saudi Arabia revealed $40.6 billion of stimulus packages aimed at supporting their economies hit hard by the coronavirus outbreak and the oil price crash, EDNews reports citing SPG Global.
The UAE's central bank on Saturday announced a package of Dirhams 100 billion ($27.3 billion) that will allow banks to provide relief to private sector companies. Saudi Arabia's central bank announced the same day a Riyals 50 billion ($13.3 billion) package to prop up the private sector.
The effective collapse of the OPEC+ coalition when the group and its allies failed to agree on an additional 1.5 million b/d of cuts on March 6 has triggered a 30% collapse in prices, with no floor in sight. Brent crude is now threatening to dip below $30/b and test levels last seen back in 2004. Some industry veterans even fear prices could plummet further to historic lows
The crash is set to hit most Middle East nations right when oil demand is being hit by the coronavirus. Saudi Arabia, OPEC's biggest producer, has taken drastic measures, including a two-week suspension of all international flights starting Sunday and locking down its oil-producing region of Qatif, where Saudi Aramco has major crude facilities. The UAE, OPEC's third-biggest producer, will stop issuing visas to foreigners, except diplomats, starting March 17.