Distancing themselves from an oil-led economy

Distancing themselves from an oil-led economy:

The oil-exporting GCC states have long been in the middle of diversifying their economies from oil revenues. It has been the central theme of their major reforms, thus hoping to not only make themselves immune from oil price fluctuations, but also ensure that they are prepared for a future after fossil fuels.

Their economic resilience and sustainable development heavily depend on how successful they are in the shift from a volatile oil-based economy and how ready they are in a world without oil. In 2016, the UAE Government hosted a two-day retreat in Dubai to produce a road map for this era. Federal and local authorities highlighted the need to bring their attention to human capital, knowledge, and innovation to strengthen the non-oil industry.

The efforts already yielded positive results. According to the Economic Insight report by ICAEW, the UAE’s non-oil sector now accounts for almost 70 per cent of its economy and expected to increase by 3.6 per cent in 2019. Elsewhere in the GCC, other member states have similar initiatives.