SHARJAH / WAM
The Arab League has commended measures taken by the United Arab Emirates (UAE) in response to the impact of the decline in world oil prices.
”There are promising signs emerging from the project implemented by the UAE to diversify sources of national income,” Arab League’s Secretary-General Dr Nabil Al Araby said in a keynote address at the Conference on the Repercussions of the Oil Crisis on Arab Economies’ Management, organised by the Arab Administrative Development Organization (ARADO) in the Egyptian capital, Cairo, on Tuesday.
In his address, read out on his behalf by Deputy Secretary-General Ahmed Bin Heli, Al Arab said the deep transformations the Arab region is experiencing had imposed a new reality and challenges that require Arab institutions to join forces to interact with them and respond to them.
Al Araby also called for a common Arab approach to handle the impact of low oil prices on Arab economies. ”Arab oil policies need to be co-ordinated and harmonised at both regional and international levels so that Arabs can act as one bloc to mitigate the negative impacts on Arab oil industries,” he said.
Low oil prices, he noted, had resulted in delay or cancellation of a number of oil investment projects and this could affect world oil supply and cause a shortage in demand when the global economy recovers and the demand rises again.
As holders of two-thirds of the world’s oil reserves, Arab oil producers pump 24.2 mbpd, or 32 percent of the world oil output, he added. The two-day event will examine the latest industry and prices trends, causes behind the current oil crisis, and the world oil price outlook, as well as the impact of shale oil on MENA oil producers.