The idea of economic reform is nothing new in the Gulf. But in a region dependent on oil exports and government spending for growth, reform is very difficult to deliver.

Cutting the government subsidies that keep fuel, water and electricity prices at a minimum for locals go to the heart of the social contract between government and society, and are politically sensitive. As are moves to cut government jobs. Or to privatise state industries. Or introduce new taxes.

But fundamental economic reform must happen in the GCC. It is unsustainable and dangerous to remain dependent on a single commodity, and on the state for growth.

This is understood by government and that is why the fall in oil prices in 2014 was used as an opportunity to push ahead with long-talked-about reform programmes such as Saudi Arabia’s Vision 2030.

But three years into the reform agenda, and despite much work being done to lay the foundations for change, it is difficult to see any progress.

An initial wave of actions that saw fuel prices, higher taxes and fewer projects were about a much-needed fiscal adjustment in order to balance the books. But action on fundamental restructuring has lagged behind.

Abu Dhabi recently backed 10-year visas for investors and professionals, as well as allowing 100 per cent foreign business ownership, but the privatisation of state industries has been limited. And important labour market reforms that allow private companies to hire and fire locals have been slow.

These are important and delicate issues, and governments are right to tread carefully. But with oil prices rising, it is to be hoped that the political will to implement vital reform is not ebbing away.

MORE FROM THIS MONTH'S AGENDA

MAIN AGENDA: Reforms refuel the region’s economic engine

INFOGRAPHIC: Fiscal adjustment

INDUSTRY VOICE: IMF mission chief for Saudi Arabia, Timothy Callen, shares his perspective on reform in the kingdom