After two years of economic uncertainty as a result of roller-coaster volatility in oil prices, there is a strong sense that some kind of equilibrium has been reached in the energy markets that will underpin a prolonged period of relative stability in oil prices.

It is a period that represents a perfect opportunity for the region to roll out a new economic model that will provide  sustainable growth and job opportunities.

While rolling back the state and stimulating the private sector may be right, it will not be easy

The fact that the ‘new normal’ oil price is likely to be in the $50-$60-a-barrel price band provides the region with a unique window to implement strategic and fundamental economic reforms that will finally liberate the region from its dependence on oil.

It must be recognised, however, that while rolling back the state and stimulating the private sector may be right, it will not be easy. As government reform programmes move beyond the financial reforms of subsidy cuts and fiscal efficiencies into more sensitive areas of labour market reform and the privatisation of public sector fiefdoms, there will be increasing political opposition to the changes.

It is vital that governments, particularly Saudi Arabia, move quickly to build positive momentum as they implement their programmes.

Security concerns will continue to cast a dark shadow over the region in 2017, in part from the ongoing threat of terrorism from Islamist extremists, but mostly from the continuing escalation in geopolitical tensions between Tehran and the GCC states led by Saudi Arabia.

It is to be hoped that the cooperation between Iran and Saudi Arabia in agreeing to reduce Opec production levels can provide the foundations of an improved working relationship.