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Economic diversity is the process of transitioning an economy away from reliance on a single sector or source of earnings to multiple sectors and markets. This sort of economic shift is currently underway in the Gulf Cooperation Council (GCC) region, where Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are experiencing rapid socio-economic improvement.
The GCC area is going through a transformative stage focused on financial diversification and sustainable development. Historically reliant on oil and gas, GCC economies are now striving to diversify their income sources through ambitious government-led initiatives like Saudi Vision 2030 and We the UAE 2031 that shift focus from high-risk, vulnerable and/or high-carbon markets and sectors to economies.
A strong motorist behind financial diversification and green shift strategies in the GCC is the well-documented effect of environment modification in the region being experienced now and in the future. The World Bank approximates that up to 100 million individuals in the Middle East, including the GCC, will experience water stress by 2025, with portions of the area expected to end up being uninhabitable by the end of the century due to water deficiency and high temperature levels.
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