Plunging stock markets in the Gulf show investors are panicking about the prospect of $70 oil next year. But heavy state spending means most firms in the region, with the big exception of petrochemical producers, are likely to do just fine.
The main Saudi stock index sank 4.8 percent on Sunday, bringing its losses from its September peak to 23 percent. Dubai's index is down 21 percent from this year's high. By contrast, the MSCI emerging markets index is down just 9 percent.
Investors fear that if the price of Brent crude stays around $70 a barrel next year - down from around $115 in June - governments in the six-nation Gulf Cooperation Council will cut back their spending in line with shrinking oil revenues, which are their main source of income.
State procurement budgets could be cut, subsidies removed and big construction projects slowed or cancelled. If that happens, corporate
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