Most of the Gulf countries have announced their budgets for this year, which appear to be in a better shape than in 2016. The UAE, for example, planned a balanced budget while Saudi Arabia brought down its budget deficit by 33 per cent and Oman is forecast to reduce its by 31 per cent.

Interestingly, these developments have not only been triggered by expectations of oil price increases jump from $45 per barrel in 2016 to $57 in 2017, but also from a series of financial reforms introduced by all Gulf states, which have boosted revenues and reduced excessive consumption.

It is the first time since the discovery of oil that demand for electricity in Saudi Arabia has not surged but actually declined by 3 per cent, an indication of a rationing of excessive consumption, caused by low prices rather than demand.

Such figures suggest that GCC economies have begun recovering after the deterioration in oil prices two years ago and conditions might probably be even better than what the data may suggest. Accordingly, GCC countries have drafted annual budgets with oil price at $50-$55 per barrel and with possibilities of higher prices.

However, there are some parties abroad and at home trying to spark baseless fears in Gulf society. Or even spice up the interpretation of measures taken, which definitely would be in the interest of building modern and oil-free economies.

These desperate attempts come after malicious polices since 2011 failed to sow the seeds of chaos in the six states, as had happened in some Arab countries, This was thanks to awareness among Gulf rulers and their resolve to maintaining their painstakingly achieved advances on all fronts.

Yet this does not mean that things are now perfect like it was in years of the oil boom. There are now real challenges facing most of the world’s economies, but the GCC has the tools that would allow them to overcome such challenges.

But let’s not forget that these challenges are not foreign to the GCC. In1986 and 1998, they faced tougher ones when oil prices plummeted to $7-$10 per barrel. But today things are different and hurdles are occurring while an oil barrel is worth $50.

Things would have been even better had it not been for the instability of the region, which incurred additional costs for the GCC states to protect their countries and achievements and fend off aggression against them, a priority to every Gulf citizen.

There have been some foreign and local media attempting to portray the Gulf economies as if they are about to collapse, forgetting the fact that Gulf citizens are still enjoying a much higher standard of living. We don’t have people living in cemeteries or suffering from poverty as is the case for Iran, which has participated in the malicious campaign against the GCC states.

Neither are there people crossing boarders to purchase unavailable goods in the home country as is the case for Venezuela, nor people living in the streets as in developed countries.

Obviously the situation in the GCC bloc is the opposite of that and they still attract millions for shopping, entertainment and tourism.

The bottom-line here is that the three Gulf economies — UAE, Kuwait and Qatar — will easily surmount challenges, while Saudi Arabia remains the Arab world’s largest economy. Saudi investments abroad, for instance, are estimated at $3.6 trillion or 20 per cent of the overall size of the US economy. The economies of Bahrain and Oman are quiet small and it is easy to deal with them inside the GCC system.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.