Economic Diversification in Oil-Exporting Arab Countries

Date: April 29, 2016
Electronic Access: Full Text

Summary:countries face similar challenges to create jobs and foster more inclusive growth. The current environment of likely durable low oil prices has exacerbated these challenges.

  • The non-oil private sector remains relatively small and, consequently, has been only a limited source of growth and employment.
  • Because oil is an exhaustible resource, new sectors need to be developed so they can take over as the oil and gas industry dwindles.
  • Over-reliance on oil also exacerbates macroeconomic volatility.

Greater economic diversification would unlock job-creating growth, increase resilience to oil price volatility and improve prospects for future generations.

Macro-economic stability and supportive regulatory and institutional frameworks are key prerequisites for economic diversification...

Series : Policy Paper
Subject(s): Oil exporting countries | Economic conditions | Oil prices | Oil revenues | Nonoil sector | Private sector | Public sector | Employment | Population | Labor market reforms