1. Mapping economic diversification across the Gulf Cooperation Council
- Author:
- Karen E. Young
- Publication Date:
- 09-2019
- Content Type:
- Special Report
- Institution:
- American Enterprise Institute for Public Policy Research
- Abstract:
- The economies of the Gulf Cooperation Council (GCC) remain heavily reliant on natural resource revenue as a source of government spending and a driver of growth. Diversification efforts now often include new ways to generate revenue through state investments in energy projects abroad (including refining and petrochemical production) and national oil companies. Since 2015, the GCC countries have become more competitive with each other in altering their policy landscapes to streamline fiscal expenditure and attract foreign investment and resident investors. There is significant variation in policy approaches to foreign labor and tax. Each of these governments faces enormous strains on public finances and challenging economic outlooks, due to depressed oil prices, demographic pressures, high unemployment rates, and a lack of economic diversification. Debt has become a tool of choice, but the capacity to repay and the capacity to grow are both beginning to differentiate the GCC states.
- Topic:
- Foreign Policy, Defense Policy, Government, Natural Resources, and Economy
- Political Geography:
- Middle East, Gulf Cooperation Council, and Gulf Nations