Economic Diversification in GCC Economies: A Heaven for Investors
- Humoud Almutairi
Investors all over the world strive to a heaven for their investments. Strong economies tend to be the most desirable place for investments of all types. As one indicator of stable economies is the economic diversification, this study analyses and highlights improvements in economies of GCC as they strive to move beyond oil and petroleum sectors; grabbing attention of acute investors and global businesses and almost being in noticeable par with the seven largest emerging economies (the E7) that has monopolized the limelight.
Economic diversification of GCC Economies is analyzed by indirect approaches of measuring dependence of economic activity, budget and external accounts of productions and revenues generated by hydrocarbon sector and non-hydrocarbon sectors.
Non-Oil growth in GCC is expected to be around 8% in the next 10 years (PwC Middle East Projections, 2013). A number of additional factors like politic stability, macro-economic reform and modernization, enhancement of private sector competitiveness that enhances growth have been noticeable in the GCC. For eg; UAE, Saudi Arabia and Qatar have the least demanding tax framework globally retaining top three positions in overall tax ranking (World Bank and PwC, 2014). In addition to the mentioned, building up of skills in the region by expats and nationals alike creates a huge opportunity, almost at par with the E7 marketing economies.
The author has cross checked observations based on Figures, tables and analysis with all publically available resources. Authorities like the IMF, the IIF, Central Bank reports and BNP Paribhas findings have been used for conclusions and generation of findings.
The inference is that GCC Economies have started to diversify from Hydro Carbon sectors at a slow, but steady pace due to depleting resources in various GCC states and Competition from various other countries in eth same field; creating an economic environment for investors and a huge pool of Job Opportunities in the future.
All data and Figures are taken with reference to publications from IMF, IIF, Central Banks and BNP Parabhas.
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