GCC countries still dependent on oil takings despite diversification | Economy | Saudi Gazette

GCC countries still dependent on oil takings despite diversification | Economy | Saudi Gazette:



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The annual budget spending in GCC countries still continues to be driven almost entirely by income from the export of hydrocarbons although the contribution of non-hydrocarbon GDP to the overall GDP has significantly increased over the past two decades across the region, Alkhabeer Capital, a leading asset management and investment firm based in Saudi Arabia, said in a report on GCC budget analysis and government spending behaviors.



Since the global financial crisis, the GCC economies have consistently outperformed their global peers, growing by about 24 percent during the last 5 year period until 2013, supported by robust oil revenues - which the GCC countries are highly dependent on.



Hydrocarbon revenues in Qatar and UAE account for close to 60 percent of the total revenues of the countries, however in Saudi Arabia and Kuwait, the figure is close to 90 percent and 93 percent, respectively. This is in contrast to other resource-rich economies such as Norway, where revenues from oil account for just about 30 percent of government revenues."



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