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Soaring of the Gulf Falcons; Diversification in the GCC Oil Exporters in Seven Propositions

Reda Cherif and Fuad Hasanov

No 14/177, IMF Working Papers from International Monetary Fund

Abstract: A key priority for the Gulf Cooperation Council (GCC) countries is to create a dynamic non-oil tradable sector to support sustainable growth. Since export diversification takes a long time, it has to start now. We argue that the failure to diversify away from oil stems mainly from market failures rather than government failures. To tackle market failures, the government needs to change the incentive structure for workers and firms. Experiences of oil exporters that managed to diversify suggest that a focus on competing in international markets and an emphasis on technological upgrade and climbing the “quality ladder” are crucial.

Keywords: Exports; Export diversification; Bahrain; Development; Cooperation Council for the Arab States of the Gulf; Cross country analysis; Oman; Qatar; Saudi Arabia; Industrial policy; Oil exporting countries; Nonoil sector; Natural resources; Kuwait; United Arab Emirates; oil countries, growth, oil, exporters, oil exporters, oil exports, Exhaustible Resources and Economic Development, (search for similar items in EconPapers)
Pages: 55
Date: 2014-09-24
New Economics Papers: this item is included in nep-ara and nep-ene
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