It is the era of shale oil, renewables and electric cars; oil price is never going to return to $100, said Anthony Hobeika, CEO, MENA Research Partners.
Hobeika was making his statement at the MEP UAE Conference 2018 held on 9 May 2018, at Grosvenor House, Dubai.
He said: "[The oil price at] $60 is the new normal, and the UAE has to learn how to survive. We are seeing very slow signs of recovery."
However, he said that the UAE is going through a great change. He said: "We are seeing 10 years worth of change in just a few years. There are transformational plans by the government. The government has a lot of short-term and long-term measures."
The oil crisis has hit the UAE and led to a slowdown. Unlike previous oil shocks, the government is doing something about it and diversifying the economy, Hobeika added.
The short term measures involve cost rationalisation, tax reforms and privatisation, whereas the long term measures are UAE Vision 2021, the Abu Dhabi Economic Vision 2030, Dubai Plan 2021, Dubai Industrial Strategy 2030, etc.
Hobeika said: "A range of new industries are arising such as technology, renewable, entertainment, tourism and consumer-led sectors. There is a clear shift from an old economy to a new economy."
Hobeika heads up MENA Research Partners, a research and consulting outsourcing company offering customised and syndicated business intelligence to corporations in the Middle East & North Africa.