DUBAI—The International Monetary Fund estimates the Middle East’s oil-dependent economies have missed out on $390 billion in oil revenues last year alone and face up to $150 billion in income losses this year as a result of cheap oil prices.

The drop in revenues stemming from the export of oil is the direct result of the plunge in crude prices from around $115 a barrel in the middle of 2014 to below $30 at the start of the year and now above $40, the IMF said.

The loss in potential revenues has put an enormous strain on the economies of major oil exporters such as Saudi Arabia and Kuwait who have posted massive budget deficits in the past year. The IMF had previously calculated that the declining energy prices would erase around $360 billion in oil receipts.

To overcome these gaping budget deficits, Persian Gulf countries have introduced a raft of measures ranging from cutting energy subsidies to raising taxes. Some, such as Saudi Arabia, have also burned through their foreign reserves or started to borrow internationally to ease the fiscal pressures.

“2016 is year number two in a multi-year adjustment process to reach balanced budgets,” said Masood Ahmed, director of the IMF’s Middle East and Central Asia Department. “Probably another four to five years of action will be needed both on spending and on revenues before reaching a comfortable fiscal situation for many countries,” he said.