MANAMA: The oil prices which have touched the lowest ebb in the recent history reaching $70 a barrel should used be used as an opportunity by the Middle East countries, according to an expert.
Douglas McWilliams, ICAEW Economic Adviser and Executive Chairman of the Centre for Economics and Business Research (Cebr), who is in Bahrain to launch the regional and global economic forecast, in an exclusive interview told The24X7News (www.twentyfoursevennews.com) that this oil prices crisis should be seen as an opportunity by the Middle East countries by addressing the fundamental flaws in their respective economies.
“The Middle East region is at the bottom of the world when it comes to education and development of human capital, the major driver of the economic development,” Douglas, said adding that this region needs to set their priorities in the right direction.
“Firstly, the concept of oil based economies is fading away and the Middle East countries need to tread on the path of diversification by moving their economies away from the hydro-carbon dependency. Secondly, there is a need to focus on the development of the education sector as human capital propels the economic growth and this single benchmark only can help in sustaining a lead role for any nation,” he said.
The ongoing depression in oil prices, he said, may further push to $50 a barrel but within six to eight weeks this pendulum will bounce back.
He was of the view that the largest oil producer like Kingdom of Saudi Arabia might be interested in the current prices crisis as it might force to eliminate the threat of fragmented oil producers like that of the US.