Economic Diversification in The Arab World .


Title : Economic Diversification in The Arab World

ISSN : 9

Publisher : Arab Planning Institute - Kuwait

Author : Nagi Al Tony (Editor)

Published Date : 2002

Contents :

In a broad-based but comprehensive survey of economic diversification in the GCC countries, Baroudi stresses that, despite the varying degree of seriousness and consistency with which this objective has been pursued there has been progress in the establishment of downstream industries (petrochemicals, fertilizers and metals), some manufacturing, agriculture (albeit at a high cost in subsidies) and services (in the form of financial institutions and tourism). The author examines changes in the contributions to GDP of each sector and some of the problems encountered in the diversification process รข?? for example the scarcity of water resources in agriculture or the similar structure of production of GCC countries in downstream activities. Yet, comparing the periods 1996-98 with 1981-85 shows that the contribution of oil sector to GDP has fallen from over 60 percent in Kuwait and Oman to under 40 percent, and from over 40 percent in Saudi Arabia and the UAE to under 35 percent, though this data is not independent of the price of oil.