REGIONAL

Low oil prices, widening fiscal deficits, rising populations, political turmoil, terrorism, religious intolerance and high youth unemployment conjure up a recipe for economic disaster for a region that once controlled the world’s main energy supplies and appeared set fair for long-term economic success. Does the oil curse have the region staring into an economic abyss as fiscal deficits rise?

The current cycle of global oil prices and the consequential erosion of their...