The role of entrepreneurial state in GCC economies in building a long-term sustainable development

Jalal Qanas and Malcolm C. Sawyer

Chapter 1 in Economic Challenges in the Gulf Cooperation Council Countries, 2026, pp 1-17 from Edward Elgar Publishing

Abstract: This chapter examines the ambitious efforts of the Gulf Cooperation Council (GCC) countries to transition from oil-dependent rentier states to diversified, knowledge-based economies. It frames this transition as a strategic pivot from relying on a natural comparative advantage in hydrocarbons to deliberately building competitive advantage in new industries. The chapter argues that while GCC nations are actively adopting the policies and rhetoric of the “entrepreneurial state” model, characterized by mission-oriented public investment and market-shaping initiatives, their progress is fundamentally constrained by the enduring structural legacies of their rentier past. Through an analysis of national development visions, strategic investments, and persistent structural challenges, the chapter demonstrates a core tension: the drive to foster innovation and a dynamic private sector clashes with deep-rooted dependencies on hydrocarbon revenues, state-centric economic activity, and a “rentier mentality” that distorts labor markets. The chapter concludes that without addressing these foundational impediments, the GCC's entrepreneurial state project risks becoming a more sophisticated form of state-led rent distribution rather than a catalyst for sustainable, private-sector-led growth.

Keywords: Entrepreneurial State; GCC; Economic Diversification; Competitive Advantage; Rentier State; Industrial Policy; Sustainable Development; Middle East Political Economy (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035358434
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035358441.00007 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:24437_1

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().