## Economic Diversification in Oil-Exporting Arab Countries

_Policy Papers, April 29, 2016_

## Source details

**Canonical URL:** [Economic Diversification in Oil-Exporting Arab Countries](https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/economic-diversification-in-oil-exporting-arab-countries-pp5038)

## Other formats

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## Bibliographic details
- Published: April 29, 2016
- Series: Policy Papers

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### Key findings and 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.
- The current environment of likely durable low oil prices has exacerbated these challenges.
- Greater economic diversification would unlock job-creating growth, increase resilience to oil price volatility and improve prospects for future generations.

### Policy implications and prerequisites
- Macro-economic stability is a key prerequisite for economic diversification.
- Supportive regulatory and institutional frameworks are also key prerequisites for economic diversification.

### Subjects covered
- Economic conditions
- Employment
- Labor market reforms
- Nonoil sector
- Oil exporting countries
- Oil prices
- Oil revenues
- Population
- Private sector
- Public sector

*Source: IMF policy paper landing page for "Economic Diversification in Oil-Exporting Arab Countries" (April 29, 2016).*

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- **Executive Summary**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/economic-diversification-in-oil-exporting-arab-countries-pp5038_