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Economic diversity is the procedure of transitioning an economy away from dependence on a single sector or income to multiple sectors and markets. This type of economic shift is currently underway in the Gulf Cooperation Council (GCC) area, where Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are experiencing quick socio-economic change.
The GCC area is undergoing a transformative phase focused on financial diversification and sustainable advancement. Historically reliant on oil and gas, GCC economies are now making every effort to diversify their profits sources through ambitious government-led initiatives like Saudi Vision 2030 and We the UAE 2031 that shift focus from high-risk, susceptible and/or high-carbon markets and sectors to economies.
A strong driver behind economic diversification and green transition plans in the GCC is the well-documented effect of environment change in the region being experienced now and in the future. The World Bank approximates that up to 100 million individuals in the Middle East, including the GCC, will experience water stress by 2025, with portions of the region anticipated to become uninhabitable by the end of the century due to water scarcity and high temperatures.
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