GCC Countries Still Too Reliant On Oil and Gas Revenues, S&P Says - Middle East Real Time - WSJ

GCC Countries Still Too Reliant On Oil and Gas Revenues, S&P Says - Middle East Real Time - WSJ:



"High oil prices have always been a double-edged sword for the Persian Gulf countries.



The region’s vast hydrocarbon reserves allowed for the rapid development of these countries’ economies and still provide an indispensable source of income. But over the years, the overreliance on energy-related revenues means governments have largely failed in designing more dynamic economic systems that ensure the creation of sufficient jobs and promote non-oil activities that would still be viable in the long run when reserves dry up.



The solution, economists and policymakers have always maintained, lies in economic diversification away from oil."



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