The International Monetary Fund says Gulf states need to diversify economies to offset lower revenues from oil.

A recently released IMF report, predicts that economic growth among Gulf-Cooperation-Council member states will be around 1.8 percent in 2016, down from 3.3 percent last year.  Oil prices hit 39 US dollars per barrel on Sunday - down some 70 percent from two years ago.

IMF regional chief, Masood Ahmed told Gulf countries they need to cut government spending and revitalize their private sectors to combat slowing economic growth. According to the IMF, it could take three years before oil prices reach 50 US dollars per barrel again.