Building economic stability through effective natural resource management and renewable energy investment in GCC countries

Yasir Ahmed Solangi () and Cosimo Magazzino ()
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Yasir Ahmed Solangi: Prince Sultan University

Empirical Economics, 2025, vol. 68, issue 5, No 10, 2327-2355

Abstract: Abstract This research addresses the pressing need to enhance economic stability in Gulf Cooperation Council (GCC) countries through effective natural resource management, including both mineral and hydrocarbon resources and renewable energy investment. Given the significant dependence on hydrocarbon earnings and the increasing calls for sustainable development, diversification of energy sources and economic activities is essential. This study employs the analytical hierarchy process and fuzzy technique for order of preference by similarity to ideal solution methods to evaluate and prioritize various criteria and policy strategies. The analytical hierarchy process (AHP) method is utilized to assess and rank the criteria and sub-criteria. In contrast, the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method ranks the policy strategies for improving economic stability through natural resource management and renewable energy investment. The AHP results show that social and environmental impacts, economic diversification, and development of the energy and mineral sectors are the most critical criteria for enhancing economic stability. This approach fosters a more balanced economy, reduces dependence on fossil fuels, and ensures sustainable growth. Furthermore, fuzzy TOPSIS results prioritize diversification of energy sources, investment in renewable energy infrastructure, and initiatives in mineral resource management as the most effective strategies. These findings offer important guidance for policymakers and stakeholders in advancing sustainable development and enhancing economic stability in the GCC countries.

Keywords: Natural resource management; Mineral resources; Renewable energy; Economic stability; Sustainable development (search for similar items in EconPapers)
JEL-codes: C90 Q01 Q20 Q54 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00181-024-02706-9

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