Impact of Capital on GCC Industrial Development

, chapter 1, pages 1-29, Palgrave Macmillan. 2012/271, International Monetary Fund., MIT Press, vol.

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Economic diversity is the procedure of transitioning an economy far from reliance on a single sector or source of income to multiple sectors and markets. This kind of economic shift is presently underway in the Gulf Cooperation Council (GCC) area, where Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are experiencing fast socio-economic transformation.

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The GCC area is going through a transformative stage focused on economic 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 efforts 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.

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A strong motorist behind economic diversity and green shift strategies in the GCC is the well-documented impact of climate change in the region being experienced now and in the future. The World Bank approximates that up to 100 million people in the Middle East, including the GCC, will struggle with water stress by 2025, with portions of the area anticipated to become uninhabitable by the end of the century due to water scarcity and heats.