The importance of economic diversification in the Middle East | Financial Times:
The recent attacks on Saudi Arabia’s oil facilities have highlighted the role of the world’s largest oil exporter and of the overall Middle East as cornerstones of global energy.
They also underlined the persistent risk of volatility in oil prices and the importance of economic diversification in the region’s petrostates, which governments have been addressing but, so far, with limited success.
Historically, Middle Eastern petrostates have turned to diversification during periods of low oil prices, typically proposing various initiatives to increase the private sector’s role in the economy, encourage small and medium-sized enterprises (SMEs), to create jobs and invest in education and innovation. Such plans have been abandoned when oil prices recover.
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