Forecasting Prospects for Economic Diversification and Sustainability in the Gulf Economies, in Light of the Collapse in Oil Prices

Volume 3|Issue 3| Oct 2018 |Research Papers

Abstract

The economic conditions of the past few years, which have been marked by a collapse in oil prices, have given renewed impetus to questions on departing from the rentier economy and embarking on economic diversification and sustainability for Gulf economies. In this paper, Khalid al-Khater forecasts the conditions to emerge from the existing model for growth and discusses how to transform the Gulf economies from rentier economies dependent on extraction, deduction, and distribution to economies reliant on labor, production, and diversification of activity and exports, as well as the transformation of depleted natural resources into assets generating sustainable growth and the use of the Gulf sovereign wealth funds to achieve this aim. Al-Khater focuses on economic diversification and the conditions to achieve it, from development of human capital to reform of the public and private sectors and the sustainability of the development model.

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