Contributor
Mohamed Z. Bechri is a former economics professor at the University of Tunisia. He served as principal economist at the Central Bank of the United Arab Emirates from 2001-22, where he conducted policy-oriented research and was the lead author of “The U.A.E. MSMEs Business Survey Reports” for 2019 and 2020. He was also an economist in the International Monetary Fund’s African Department from 1993-95. His main research focus is on monetary policy, institutions, and development. Bechri holds a doctorate in monetary economics from La Sorbonne University in Paris and a PhD in economics from the University of Southern California in the United States.
Gulf central banks can increase transparency by adopting credible reform agendas focused on the publication of accurate statistics, disclosure of analysis and forecasting methodology, and forward-looking explanations of policy decisions.
Given the volatility of hydrocarbon prices and other external shocks, Gulf Arab states can benefit from adopting countercyclical fiscal policies – a bold, but necessary, shift that will limit fallback during economic downturns.
Amid a global financial slump, government reforms in the Gulf Arab states have helped stock markets achieve a remarkable boost in market capitalization.
With the fluctuations of oil and gas prices creating shocks to their economies, Gulf states may want to rethink the peg to the U.S. dollar.
