Kuwait - Mubasher: Low oil prices could be slowing economic growth in the gulf region for years to come, despite the expansion in crude oil production, said the CEO of Kuwait International Bank (KIB).

Mohammed Jarrah Al-Sabah added during his speech to the International Arab Banking Summit “IABS” 2017 in London that the drop in oil prices and the continuous conflicts pose huge pressures on the entire region's economy, according to a press release.

The decline in oil prices affects oil-exporting Arab countries due to the weak global growth, as well as the oil-importing countries as a result of the lower demand and money transfers from abroad.

Jarrah noted that the oil sector will see an improvement this year, in turn contributing to decreasing deficits, which is expected to maintain high levels despite the recent austerity measures that included reforming local energy prices.

Other Arab countries are seeking to enhance their economic growth through restructuring strategies, however, growth levels remain weak with high levels of unemployment resulting in social challenges, he added.