The inflation rate in the Middle East is now estimated to be 8.8% in 2020. With Egypt, possibly the fastest growing Arab country, growing at only 2%, most oil producing countries in the region are seeing economic contractions. The combination of Covid-19 hitting the local population and the oil decline has severely affected this region.
Arab oil exporters are forecasting oil supply cuts of about 50% in 2020 and 2021, levels that have been approved by OPEC agreements. The combination of significant cuts in production, $42 a barrel for oil, and Covid affecting local marketplaces, will have a significantly negative impact on regional economies.