Oil in Egypt, Oman, and Syria : some macroeconomic implications

Working paper

This study considers the experiences of Egypt, Oman, and Syria in managing their oil and gas sectors. All three countries depend on the technological and financial leadership of international oil companies to deliver output, and displayed openness and flexibility to retain them. Sectoral policies were often amplified by macro-economic policies. In Oman and Egypt, financial and fiscal reforms allowed governments to reduce their vulnerability to oil revenue volatility. Their sectors can rely on a more diversified composition of financial flows. Both are mobilising more local resources and human capital. Syrian output rose successfully without recourse to commercial bank lending, but its government remains vulnerably dependent on oil revenues. Its poor record on technical progress and on financial development constrained both sectoral development and economic growth. All three countries continue to experience sectoral imbalances, particularly in the downstream. Although general, these conclusions reveal a need for focusing on qualitative aspects of oil dependency. Perhaps oil and gas represent an evolving range of opportunities and problems rather than a blessing or a curse.

Authors: Alami, R

• Publication status: Published
• Peer review status: Reviewed (other)
• Publisher: Oxford Institute for Energy Studies
• Series: OIES paper
• Publication date: 2006-01-01
• Edition: Publisher's version
• Paper number: M30
• ISBN: 1901795497
• Language: English
• Keywords: imbalances; oil financing; OIES; Egypt; Syria; the Middle East; Oman; financial fows; fiscal reforms; oil dependency; gas financing; macroeconomics