The Federation of the Gulf Cooperation Council Chambers (FGCCC) recommended the establishment of a coordinated mechanism between the private and public sectors to monitor the impact of the coronavirus outbreak.
Each Gulf state must set its work goals and review all measures taken to support the private sector, especially in wake of the pandemic, it said in a reported published on Sunday.
It highlighted the importance of providing the necessary recommendations to update and develop them according to the stages of the spread and impact of the virus.
It is necessary to develop proposals and scenarios for the post-coronavirus stage to ensure the recovery of the private sector establishments, said the report. It warned against ending the government subsidy until it is guaranteed that the impact of the outbreak can be overcome.
The report noted that GCC governments have taken a series of effective financial and economic subsidy measures, which effectively contributed in protecting the economy, employees and the private sector.
Entrepreneurs and small and medium-sized enterprises were the most protected from the repercussions of the virus’s spread.
The report pointed out that the latest international estimates have indicated that GCC states, like most countries in the world, endured major economic turmoil through simultaneous supply and demand shocks.
The sharp drop in oil prices by more than 60 percent has exacerbated the negative effects, it added, citing an International Monetary Fund (IMF) report which said growth in the GCC is projected to contract by 2.7 percent in 2020.
The FGCCC noted that as the pandemic eases, Gulf countries must set prioritize sustainable development, which demands restoring confidence by providing wide fiscal and monetary policy support.
