Changing oil markets offer impetus to make the transition to knowledge economy, as UAE has shown
Economic diversification is the way forward for any nation that hopes to develop a knowledge-based economy. Monday’s announcement of the Saudi budget sheds light on oil’s ongoing dominant role in Gulf states’ economies. That needs to change immediately. The GCC-wide call for economic diversification is decades old. …
For the second successive year, the Saudi government will be running a deficit — thanks to falling oil prices. The deficit itself is not an issue, but the budget still highlights the overly large role that oil plays, especially in terms of providing subsidies to citizens and residents. In Saudi Arabia alone, state revenue from oil stands at an estimated 73 per cent in 2015. The UAE has shown that economic diversity is more than just a theory. The country has already brought in tourism, aviation, manufacturing and retail and is on its way to building a knowledge economy. Oil in Dubai contributes only 6 per cent to the economy. Rest