This book delves into the economic development of the six Gulf Cooperation Council (GCC) countries. Since the 1960s, the GCC states have harnessed their potential to exploit the wealth accrued from the oil boom to build their infrastructure and grow their economies. However, the high level of dependency on oil as the primary source feeding their output made their economies volatile and vulnerable to fluctuations in the global oil prices. Moreover, the plunge in oil prices and the threat of depletion of this natural resource pose serious challenges to the GCC countries. Consequently, the GCC governments have realized the importance of diversifying their economies following the need to move away from reliance on hydrocarbon.
This book contributes to the theoretical literature by enriching the debate on the transition of the GCC countries from rentier states to diversified economies. It helps students and scholars understand this transformation with an expansive comprehension of the contemporary challenges facing the region, as well as outlining prospects for the future.
Author(s): Héla Miniaoui
Series: Gulf Studies)
Publisher: Springer
Year: 2020
Language: English
Pages: 208
City: Cham
Introduction
The GCC Countries at a Glance
Towards Post-Energy Economies
GCC Countries’ Contemporary Issues and Prospects
Book Outline
Contents
Natural Resources Curse and Economic Diversification in GCC Countries
1 Introduction
2 Understanding the Cursing-Blessing Dilemma
3 Natural Resources, Economic Development and Diversification in the GCC Countries
3.1 Natural Resources in the GCC Countries: Cursing or Blessing?
3.2 Does the Lack of Diversification Hinder Economic Development in the GCC Countries?
4 Conclusions and Policy Implications
Appendix
References
Climate Agreements’ Implementation Through Energy Transition and Economic Diversification in Kuwait
1 Introduction
2 Energy Transition in Kuwait
2.1 Fossil Fuels
2.2 Renewable Energy
2.3 Energy Projections
3 Economic Diversification in Kuwait
3.1 Diversified or not Diversified?
3.2 An Outlook Toward Diversification and Structural Change
3.3 Policy Reform
4 Conclusion and Policy Recommendations
References
Knowledge-Based Development and Economic Diversification: The Case of Qatar
1 Introduction
1.1 Knowledge-Based Economy
1.2 Innovation Ecosystem
1.3 Knowledge-Based Economy Transition in Qatar
1.4 Public Policies and National Strategies for KBE in Qatar
1.5 Qatar Innovation and Entrepreneurship Ecosystems
1.6 Qatari Public Policies and Ecosystems and KBE Alignment
2 Economies’ Development Stages
2.1 Global Competitiveness Index (GCI)
2.2 Qatar’s Performance in Global Competitiveness Index (GCI)
2.3 Qatar’s Economy Development Stage
3 Innovation Capabilities
3.1 Global Innovation Index (GII)
3.2 Qatar Performance in the Innovation Capabilities
3.3 Strengths and Weaknesses in Qatar’s Innovation Capabilities
4 Entrepreneurial Ecosystem
4.1 Global Entrepreneurship Index (GEI)
4.2 Qatar Entrepreneurial Ecosystem Performance
4.3 Qatar Entrepreneurial Ecosystem, Strengths and Weaknesses
5 Conclusion and Recommendations
References
Food Security in the GCC Countries: Towards a More Diversified and Sustainable Economic Development
1 Introduction
2 Food Security in the GCC Countries: Challenges and Opportunities
3 What Strategies Do the GCC Countries’ Development Visions Suggest for Food Security?
4 Geopolitics Matter: Impact of the Gulf Crisis on Qatar’s Food Security
5 Conclusion
References
Why Should Saudi Arabia Diversify Its Economy?
1 Introduction
2 Part 1: Energy Transition and Economic Diversification
3 From Fossil Fuels to Renewable Energy
3.1 Energy Context in Saudi Arabia
3.2 Renewable Energy Potential in the Kingdom of Saudi Arabia: Key Challenges, Strategies, and Lessons Learned
4 Reorientation of Investments, Government Expenditures, and FDI: The Kingdom of Saudi Arabia 2030 Vision
5 Part 2: Case Studies of Sustainable Projects
6 Smart Megacity: NEOM
7 Sustainable Tourism in Saudi Arabia
8 Conclusion: Projections and Policy Recommendations
References
Corruption, Rentier States and Economic Growth Where Do the GCC Countries Stand?
1 Introduction
2 Corruption, Growth and Economic Diversification
3 Does Corruption Affect Economic Growth in the GCC Countries?
4 Conclusions and Policy Implications
References
Oman’s Shift to a Post-Oil Economy
1 Introduction
2 The Discovery of Oil and Gas and the Shaping of Oman’s Economy
3 The Need to Shift Towards a Post-oil Economy
3.1 Limited Oil and Natural Gas Resources
3.2 Oil Price Shocks
3.3 Climate Change
4 Early Stages of the Oil Era 1970–1995
4.1 Preparatory Stage 1970–1975
4.2 Initiation and Implementation of 5-Year Plans 1976–1995
5 The Rise of Economic Diversification Ambitions and Vision 2020 (1996–2020)
6 Successes and Failures of Vision 2020
6.1 Human Resources Development
6.2 Diversification of Revenue Sources
7 Vision 2040: Handovers and Lessons from Vision 2020
8 Conclusion
References
The Journey of Bahrain to Economic Diversification
1 Introduction
2 Changes in Bahrain’s Economic Structure
3 Diversification and Government Policies
3.1 Provision of Infrastructure
3.2 Provision of Skilled Labor
3.3 Investment Incentives
3.4 Government and Foreign Participation in Equity Stock
4 Diversification in Non-oil Sectors
4.1 The Manufacturing Sector
4.2 Financial Sector
4.3 Tourism Sector
5 Conclusion
References
Towards Changes of Macro-Economic Structures in Middle Eastern Countries. Empirical Evidence for 1970–2018
1 Introduction
2 GCC Member Economies
3 Materials and Empirical Settings
3.1 Data Explanation
3.2 Methods Applied
4 Empirical Results
5 Conclusions
Appendix
References
UAE Economic Diversification: A Medical Tourism Perspective
1 Background
1.1 Need for Research
1.2 Objectives
1.3 Methodology
2 Economic Diversification
2.1 Why Economic Diversification?
2.2 The UAE Medical Sector for Pursuing Economic Diversification
3 A Glimpse into the Medical Tourism Industry
3.1 Current Medical Tourism Situations in Different Countries
3.2 Current UAE Medical Tourism
4 Way Forward and Conclusion
References
Why Gulf Rentier Economies Must Pursue Economic Diversification
1 Introduction
2 The Consequences of Being Rentier Economies
2.1 The Performance of Public Finance (Government Budget Surplus/Deficit) During the Deterioration of Oil Prices
2.2 The International Reserves During the Deterioration of Oil Prices
2.3 The GDP Growth Rate During the Deterioration of Oil Prices
2.4 The Stock Market Performance During the Deterioration of Oil Prices
2.5 The Trend of the Economic Sectors in the GCC Countries
3 The Diversification Strategy for the GCC Countries
3.1 Petrochemicals Industry in the GCC Countries
3.2 Renewable Energy in the GCC Countries
3.3 Tourism Sector in the GCC Countries
3.4 Medical Tourism in the GCC Countries
3.5 Islamic Finance and FinTech in the GCC Countries
3.6 Value Added Tax as Revenue Diversification
4 Conclusion and Policy Recommendations
References
