Oil .. outside expectations and the glory of the linkage to the dollar

Jamal Fakhro for CNN: Gulf taxes to come to deal with the debt and the unity of its essential oil .. outside expectations and the glory of the linkage to the dollar


United States DollarHe told CNN interview with Jamal Fakhro, an economist and the first deputy chairman of Consultative Council.

Dubai, United Arab Emirates (CNN) – said Jamal Fakhro, First Deputy Chairman of Consultative Council and an expert renowned economist, said that the oil prices are difficult to predict because of the ambiguity of the reasons driven, stressing that the Gulf states are seriously considering to go about taxing to enhance the financial capabilities shadow conditions list, felt that linking local currencies to the dollar proved its worth, with the economic and political unity of the Gulf will return the results were the best of all.

In response to a question about the changes taking place in the region and the potential impact of the economic openness to Iran in conditions said Fakhro: “The region is already undergoing fundamental changes, economic, political, and should not neglect the political side, we wish today that oil revenues countries rates are improving getting better, and return stability to the region , but now we are in front of us a very large bill to the theme of the fight against terrorism, whether at the level of Daash, or whether the problems in Yemen, and responding to security in the region as a whole. ”

He added: “We need to solve our issues and re-political security to our region, then we will look at the economy, the economy alone will give me the money and sophistication today, but the economy in the absence of security can not be sustained and that people enjoy it.”

He declined Fakhro speculation about oil prices, saying that the reasons for the low prices is still unknown, can not be considered a genuine, may remain in the future of those reasons and rising oil prices, adding: “Everyone is talking about something unknown in oil prices, there are those who say that they will take to 20 dollars, and there are those who say that it will rise to $ 60 by the end of the year. Hence the important thing is not the fact that oil prices in our region, but what is important is how to diversify our economy and not rely on oil. ”

He added: “Now this is a circumstance in which you should sit down and think about how we will maintain the continuity of development in our region, the subject of sustainable development, but we’re talking about a real application do not apply it, unfortunately.”

And about deficits in the budgets of some Gulf countries and the possibility of confrontation through modification support and tax policies responded Fakhro said: “There are countries considering actually real and began to apply direct support to those who deserve it .. support is supposed to go to the citizen in need and not to every citizen, with respect to tax policy I expect that there will be change, and there is at the level of the Cooperation Council will study the issue of tax and developed. ”

Abizaid and Bahraini economist said: “I think that the existence of a tax is not a defect or error. The error is that the state is working not get the right of economic returns achieved by the private sector. State will not be able to continue to finance its budget in the absence of other sources of funding, today resorted some countries to borrow, and a large amount of borrowing limits, and these countries are not able to repay these debts, and inevitably will negatively affect the citizens and their rights and privileges to which they have lived it. ”

He stressed Fakhro possession Bahrain opportunity to keep the economic position despite competition existing saying: “Bahrain has long been a key financial hub .. some countries were able to attract and take a share of the banking sector shares, but for now Bahrain able to be attractive to financial institutions .. Times are changing We are required to maintain Bmjarath on our earnings. ”

He stressed Fakhro that the development of the Gulf states were not to face what is currently the challenges it faces if it goes unity posed projects, and explained it by saying: “If we apply the economic unit completely or have implemented political unity we could be the most powerful, economically, politically and socially, and even militarily. Today experience Yemen proved one fact that these countries can not be the only one unit, we like it or not, can not for the Gulf States that small governments independent, we are our strength from our unity remains and if not united economically and politically will face many problems in the future. ”

Fakhro expressed the view that the Gulf states are currently reaping the fruits continue to link their currencies to the dollar, saying that such a policy “wise” proved her health in the long term, he said, adding: “Sometimes there are voices calling for change and the transition to the European currencies and other currencies, but time has proven that our choice of a dollar coin is the correct choice and the right thing, and I think that the days have proved that. ”