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Economic diversity is the procedure of transitioning an economy away from reliance on a single sector or income to multiple sectors and markets. This sort of economic 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 going through a transformative stage concentrated on financial diversity and sustainable advancement. Historically reliant on oil and gas, GCC economies are now aiming to diversify their income sources through ambitious government-led efforts 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 driver behind economic diversification and green shift strategies in the GCC is the well-documented effect of climate change in the region being experienced now and in the future. The World Bank estimates that up to 100 million people in the Middle East, including the GCC, will suffer from water stress by 2025, with parts of the area anticipated to end up being uninhabitable by the end of the century due to water scarcity and heats.
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