Posted: April 3rd, 2022

Oil and Non Oil Sectors of the GCC Economies

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Qatar’s Diversification plans are for enormous infrastructure improvement coupled with additional diversification corresponding to manufacturing, communication, development, commerce, actual property and enterprise companies. A proposed140 billion USD infrastructure constructing planwill be invested in the non-oil sector – in transport, well being, training, tourism, sports activities and roads and bridges. This consists of the development of the Hamad Worldwide Airport and a USD 36 billion railway system for internet hosting the FIFA World Cup in 2020. The nation additionally elevated the price range spending for training, to 15 %, following the transformation right into a knowledge-based economic system.

In the UAE the 5 per cent financial progress has come from hospitality and manufacturing, development and actual property are additionally main the progress story. Dubai’s tourism business additionally notably has been booming steadily in the previous couple of years: Resort occupancy charges soared upto 83.6 per cent in January 2014, coupled by the emirate’s report air passenger visitors, in response to the newest stories of the MENA survey.

In the Kingdom of Saudi Arabia, authorities is planning diversification by way of energy era, pure fuel exploration, additionally telecommunications, and petrochemicals. It has undertaken a multi-billion greenback technique to construct six Greenfield financial cities, a big step in direction of its diversification agenda. The key concern nonetheless is Saudi Arabia’s over-dependency upon the expatriate workforce for many of its jobs. The federal government is recruiting its residents by way of a mass drive apart from spending on their job coaching and training.

Bahrain has been the regional pioneer of financial diversification. Initiatives over the a long time for diversification have included downstream oil and offshore monetary companies, together with investments in human capital. To spearhead the course of of diversification it supplied low working prices and loved a fame as the “Gateway to the Gulf”, with the greatest market entry to the economies of the GCC. Bahrain additionally established monetary companies sector with greater than 4 a long time of expertise.

Oman has a effectively diversified personal sector protecting business, agriculture, textile, retail and tourism. Its main industries are copper, mining and smelting, oil refining and cement vegetation. Oman seeks personal international traders, particularly in the industrial, IT, tourism and increased training fields. Industrial improvement plans concentrate on fuel sources, steel manufacturing, petrochemicals, and worldwide transshipment ports. (Zughaibi & Kabbani, 2012)

Kuwait is the solely nation the place contribution of most non-oil financial sectors declined submit the Iraqi invasion in 1990, after lots of of firms and international establishments, together with banking and funding establishments, moved elsewhere in the area. Kuwait has not applied any vital improvement initiatives of financial worth, whereas its dependence on oil revenues has been growing. (Asoomi, 2012)

Therefore the above citations do avidly current the image of growing diversification in the GCC economies do cut back dependence on oil exports (besides Kuwait). The image beneath exhibits the identical diversification processes past the typical oil enterprise in the GCC economies.

Supply: (Beaumont, 2014)

Half 2

Non Oil Sector of the UAE

Tourism:

The UAE has made vital progress in its makes an attempt of diversification to non oil sectors. One such exceptional efficiency might be seen in improvement of its tourism sector. The tourism sector’s success is boasted in its contribution to GDP which has gone up from simply 1 % 40 years in the past, to about 10.four % at current. The sector’s relevance is predicted to rise additional in the coming a long time given the existence of infrastructure that can contribute to the improvement of the sector on extra ranges than one. In accordance with out there knowledge, about 50 million vacationers have visited Dubai Buying Pageant (DSF) and have spent round 88 billion dirham’s since its inception. The quantity of vacationers in Dubai has reached 1.1 million alone whereas it exceeded 2 million all through the nation. The numbers are vital contemplating the turmoil in the Euro zone as vacationers from Western Europe represent a big proportion of guests to the UAE.

Rising vacationer numbers has additionally injected contemporary blood into the airports in the UAE. Arrivals at Abu Dhabi Worldwide Airport are projected to exceed 10 million for the first time. Nationwide airways – corresponding to Emirates Airways, Etihad Airways and Air Arabia – have contributed a fantastic deal to this vital progress as they linked the UAE to a big community of cities throughout the globe. Different vital financial function of the tourism sector embrace the hyperlink between the varied amenities and companies and their a number of actions, corresponding to retail commerce, inside transport, communications, eating places, and companies and public utilities. If the tourism sector continues at this tempo for the subsequent 10 years it’ll elevate its share in the GDP to anticipated 12.1 %. This can be a massive proportion that matches vital sectors corresponding to processing industries and monetary companies and will Help the UAE grow to be one of the three largest vacationer locations in the Center East. (Al-Asoomi, 2011)

HealthCare:

The UAE healthcare sector might be divided into two areas; Abu Dhabi on one facet and Dubai with the Northern Emirates on the different. The UAE Healthcare Trade consists of key autonomous gamers corresponding to the Ministry of Well being, Dubai Well being Authority, Abu Dhabi Well being Authority, amongst others. A latest knowledge recorded from key regulatory our bodies and different well being institutions revealed a complete of 86 hospitals, 2,665 clinics and well being facilities, 12,752 physicians, 2,916 dentists and 9,592 mattress areas.( https://homeworkacetutors.com//write-my-paper/sanaesolutions.com/healthcare-market-uae/).In the previous few years, the UAE healthcare business has proven an unprecedented progress which is predicted to proceed in future on account of growing inhabitants, rising prevalence of way of life ailments and epidemic outbreaks like H1N1. The nation has witnessed an amazing improve in the demand for healthcare companies and professionals, which is indicative of the excessive healthcare spending lately. As per newest estimates, the healthcare market of the UAE has expanded at a CAGR of over 16% throughout 2011-2014. (SANA, 2013)

UAE has been established as one of the prime locations for medical tourism. Many multi-national firms corresponding to Saudi German Group and DM Healthcare have additionally put in place methods to develop inside the UAE healthcare market. New gamers, together with Landmark Group, are anticipated to diversify into the healthcare market in coming years. Vacationers throughout the globe search beauty surgical procedure in UAE for which it’s well-known. (SANA, 2013)

Latest years have seen extraordinarily optimistic developments by way of quite a few collaborations, strategic tie ups between healthcare stakeholders, understanding memorandum’s between public and personal entities to reinforce the healthcare business. Enlargement actions are in the offing by main hospitals whereas many new entrants are planning to foray into the market. The federal government has been creating viable ambiance for well being care stake holders, traders for the quick improvement of the well being care system in the UAE. (SANA, 2013)

References:-

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Financial-research.bnpparibas.com, (2014). [online] Out there at: http://economic-research.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=22570 [Accessed 30 Sep. 2014].

Ecssr.ac.ae, (2014). FeaturesÂ-ÂFunction of Tourism in Diversification of the UAE Financial system. [online] Out there at: https://homeworkacetutors.com//write-my-paper/ecssr.ac.ae/ECSSR/print/ft.jsp?lang=en&ftId=/FeatureTopic/Mohammed_Al_Assoumi/FeatureTopic_1488.xml [Accessed 30 Sep. 2014].

Gulfnews.com, (2014). Kuwait and financial diversification. [online] Out there at: http://gulfnews.com/business/economy/kuwait-and-economic-diversification-1.1041131 [Accessed 30 Sep. 2014].

Imf.org, (2014). MENA — GCC Nations: From Oil Dependence to Diversification, Ugo Fasano and Zubair Iqbal. [online] Out there at: https://homeworkacetutors.com//write-my-paper/imf.org/external/pubs/ft/med/2003/eng/fasano/ [Accessed 30 Sep. 2014].

Sanaesolutions.com, (2014). UAE Healthcare Market Overview | SANA Enterprise Options. [online] Out there at: https://homeworkacetutors.com//write-my-paper/sanaesolutions.com/healthcare-market-uae/ [Accessed 30 Sep. 2014].