Gulf states’ non-oil growth will depend on oil income

Significance

The deal links two key sectors in the six Gulf Cooperation Council (GCC) countries’ efforts to diversify their hydrocarbon-dependent economies, connecting transportation and logistics to sports and entertainment. Despite high-profile deals and massive investments, though, oil and gas continue to drive Gulf economies.

Impacts

• Competition between Gulf countries will grow to the detriment of the GCC, as states focus on developing the same sectors.
• Despite high-profile renewable energy endeavours, Gulf leaders will prioritise the growth and expansion of fossil fuels.
• Strong oil revenues will ensure continued state investment in non-hydrocarbon sectors.