Advertisement

Challenges of Economic Diversification in the GCC Countries

  • Ashraf Mishrif
Chapter
Part of the The Political Economy of the Middle East book series (PEME)

Abstract

The chapter addresses some of the key challenges facing economic diversification in the six member states of the Gulf Cooperation Council (GCC). Although GCC countries have made huge strides in economic growth in the past two decades, they continue to struggle with major structural impediments that hinder their economic diversification, including the rentier state model of development, diversification outside the hydrocarbon sector, industrialisation and human capital development. It argues that these challenges are not specific to GCC, and that many developed and developing countries have encountered such challenges in different forms and degrees, depending on their economic systems and levels of economic development. It stresses that GCC countries have the economic, financial and human capabilities to address these challenges, if the political will allows for major structural reforms in the economic system. It highlights a number of case studies from Dubai, Singapore, South Korea, Japan, and Germany that are appropriate for reforms and policy adjustment in the GCC economies; these global experiences could provide new insights for policymakers in the GCC countries to overcome successfully similar challenges.

Keywords

GCC Challenges Diversification Rentier state Oil Industrialisation Human development 

References

  1. Abouammoh, A. M. (2012). Higher Education in the GCC States: Reforms and Regulations. In S. Hertog (Ed.), National Employment, Migration and Education in the GCC (pp. 265–285). Berlin: Gerlach Press.Google Scholar
  2. Auty, R. (1990). Resource-Based Industrialisation: Saving the Oil in Eight Developing Countries. Oxford: Clarendon Press.Google Scholar
  3. Beblawi, H. (2011). Gulf Industrialization in Perspective. In J.-F. Seznec & M. Kirk (Eds.), Industrialization in the Gulf: A Socioeconomic Revolution (pp. 185–197). London: Center for Contemporary Arab Studies, Routledge.Google Scholar
  4. Fargues, P., & Brouwer, I. (2012). GCC Demography and Immigration: Challenges and Policies. In S. Hertog (Ed.), National Employment, Migration and Education in the GCC (pp. 231–257). Berlin: Gerlach Press.Google Scholar
  5. Gelb, A. (1988). Windfall Gains: Blessing or Curse? Oxford: Oxford University Press.Google Scholar
  6. Gulf Base. (2016, April 13). GCC States Set to Borrow Billions to Fund Deficits. Retrieved from http://www.gulfbase.com/news/gcc-states-set-to-borrow-billions-to-fund-deficits/288882
  7. Gulf Base. (2017, February 16). Gulf VAT Rollout at 5% in 2018 May Rise to 10% Over the Years: BMI. Retrieved from http://www.gulfbase.com/news/gulf-vat-rollout-at-5-in-2018-may-rise-to-10-over-the-years-bmi/294985
  8. Hertog, S. (2012a). Public Industry as Tool of Rentier Economy Diversification: The GCC Case. In G. Luciani (Ed.), Recourses Blessed Diversification and the Gulf Development Model (pp. 115–138). Berlin: Gerlach Press.Google Scholar
  9. Hertog, S. (2012b). A Comparative Assessment of Labour Market Nationalisation Policies in the GCC. In S. Hertog (Ed.), National Employment, Migration and Education in the GCC (pp. 65–106). Berlin: Gerlach Press.Google Scholar
  10. Hvidt, M. (2013). Economic Diversification in GCC Countries: Past Record and Future Trends. Kuwait Programme on Development, Governance and Globalisation in the Gulf States, 27. London School of Economics and Political Science, pp. 1–49.Google Scholar
  11. Luciani, G. (2012). Introduction: The Resource Curse and the Gulf Development Challenge. In G. Luciani (Ed.), Recourses Blessed Diversification and the Gulf Development Model. Berlin: Gerlach Press.Google Scholar
  12. Mishrif, A. (2017). Economic Diversification in the GCC Countries: An Introduction. In A. Mishrif & Y. Al Bulushi (Eds.), Economic Diversification in the Gulf Region: The Private Sector as an Engine of Growth (Vol. I). New York and Singapore: Palgrave Macmillan.Google Scholar
  13. Morakabati, Y., Beavis, J., & Fletcher, J. (2014). Planning for a Qatar Without Oil: Tourism and Economic Diversification, a Battle of Perceptions. Tourism Planning and Development, 11(4), 415–434.CrossRefGoogle Scholar
  14. Mueller, H.-G. (2012). GCC Industrial Development. In G. Luciani (Ed.), Recourses Blessed Diversification and the Gulf Development Model (pp. 139–181). Berlin: Gerlach Press.Google Scholar
  15. Ross, M. (2012). The Oil Curse. Princeton and Oxford: Princeton University Press.Google Scholar
  16. Salame, G. (1994). Democracy Without Democrats? The Renewal of Politics in the Muslim World. London: I B Tauris.Google Scholar
  17. Schlumberger, O. (2007). Debating Arab Authoritarianism: Dynamics and Durability on Non-Democratic Regimes. Stanford: Stanford University Press.Google Scholar
  18. Shuai, X. (2013). Will Specialisation Continue Forever? A Case Study of Interaction Between Industry Specialisation and Diversity. Annals of Regional Science, 50, 1–24.CrossRefGoogle Scholar

Copyright information

© Gulf Research Centre Cambridge 2018

Authors and Affiliations

  • Ashraf Mishrif
    • 1
  1. 1.King’s College LondonLondonUK

Personalised recommendations