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Economic diversity is the process of transitioning an economy far from reliance on a single sector or income source to several sectors and markets. This type of financial shift is currently underway in the Gulf Cooperation Council (GCC) area, where Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are experiencing quick socio-economic change.
The GCC area is undergoing a transformative phase concentrated on financial diversity and sustainable development. Historically reliant on oil and gas, GCC economies are now aiming to diversify their earnings sources through ambitious government-led initiatives like Saudi Vision 2030 and We the UAE 2031 that shift focus from high-risk, susceptible and/or high-carbon markets and sectors to economies.
A strong chauffeur behind economic diversification and green transition plans in the GCC is the well-documented effect of environment change in the area being experienced now and in the future. The World Bank approximates that as much as 100 million people in the Middle East, consisting of the GCC, will experience water stress by 2025, with portions of the region anticipated to become uninhabitable by the end of the century due to water shortage and heats.
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