Over the next five years or even less, Gulf States would literally run out of money if the current trend in the oil market continues, the economist said.
Of course, a country could choose to print more money, but that would lead to the devaluation of a national currency. However, according to Versailles, Gulf States can't even opt to do that.
"Printing money isn't an option, Gulf States are linked to US dollar," the IMF economist told Sputnik.
Since countries like Saudi Arabia, Oman and Bahrain generate most of their income from the export of oil, they are at the highest risk of going bankrupt. The economies of these countries aren't diverse, which means they can't really rely on other industries to keep their economies afloat, Versailles explained.
According to the International Monetary Fund (IMF), the desert kingdom is expected to end the year with a budget deficit of 20% on gross domestic product. For the first time since 2007, the country has issued securities with a maturity of 12 months.
The IMF also reported that Saudi Arabia's economic growth is expected to slow in the few years, as the government is forced to reduce spending.
The oil market has dramatically changed since last summer due to oversupply in the market. In November 2014, OPEC decided to keep its oil output levels unchanged, which led to a further slump in crude oil prices.