Question

Write three simple examples about economic diversification in GCC?

Answer 1

The economies of the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE), are mainly dependent on oil. However, in the last decade, these countries have been trying hard to diversify their economy and reduce dependence on oil. As a result, the share of non-oil GDP has increased in all the countries in a recent year. Some examples of economic diversification in GCC are:

1) Investment in raw aluminum processing in Bahrain

2) Increased investment in logistics development, trade sector, and the seaports in UAE

3) Increased growth in the LPG industry and steel mills in Oman