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An analysis of Energy Subsidy Removal in Non-Petroleum Arab Countries : Economic Development Initiatives

On a global scale, MENA region countries that rely on net energy imports face significant challenges since they are highly dependent on external sources of fossil fuels to meet their energy needs.

Currency fluctuations and unstable fuel prices are challenges related to energy dependence. This exposure creates significant economic and geopolitical implications, as maintaining a steady energy provision often requires difficult decisions that could compromise national energy security and impact many sectors.

To address these challenges, energy importers have taken measures as means of a sustainable and autonomous economy to achieve energy independence. Several countries provide fuel subsidies to their citizens. These subsidies are typically aimed at supporting low-income households and promoting economic development, but they can also contribute to fiscal imbalances and distort market incentives.