Unlocking diversification in the GCC states

The Gulf Cooperation Council (GCC) countries have the potential to become new engines of global economic growth. By capitalizing on the opportunities presented by national visions, project management offices (PMOs) can contribute to the transformation of the GCC’s economy and help shape a brighter, more sustainable future for the region and the world.

Our report examines how GCC countries can benefit from economic diversification and centralized PMOs to develop capabilities and collaborate across boundaries. It features an insightful interview with Almoatasim Alyaqoobi, Executive Director of the National Program for Economic Diversification (Tanweea) in Oman.

The GCC’s Current Economic Diversification Efforts

Within the GCC consortium, each member state has crafted individualized strategic economic roadmaps, with notable undertakings such as the Bahrain’s Economic Vision 2030, Kuwait’s Vision 2035, Qatar’s National Vision 2030, Oman’s Vision 2040, and Saudi Arabia’s Vision 2030. The UAE has presented comprehensive strategies like the UAE Centennial 207110 and the ‘We the UAE 2031’ vision, augmented by regional endeavors such as the Abu Dhabi’s Vision 2030.

There’s a tangible strategic shift within the GCC towards comprehensive economic diversification. For example, Saudi Arabia’s commitment to this paradigm shift is evident through ventures like the NEOM project and the King Abdullah Financial District. Bahrain’s progress, particularly following the release of its Economic Vision 2030, exemplifies the potential of diversification.

Dubai’s rise as a global hub is underlined by achievements such as the Burj Khalifa and hubs like the Dubai International Financial Centre (DIFC) that cement its global standing.

Concurrently, Abu Dhabi is making strides in its diversification efforts while acknowledging the continuing economic contribution of its petrochemical assets. Its ventures into tourism, culture, and education are evident with establishments like NYU Abu Dhabi and The Louvre Abu Dhabi.

Bahrain’s Economic Vision 2030

Bahrain’s blueprint for 2030 endeavors to steer away from petroleum dependency, emphasizing knowledge-centric sectors. Its ascent as a financial nexus and growth in domains like ICT and tourism are notable accomplishments. Nonetheless, labor market reforms and the private sector’s frequent reliance on governmental projects pose challenges.

Kuwait’s Vision 2035

Termed ‘New Kuwait’, the 2035 vision aspires to metamorphose Kuwait into a financial and commercial epicenter. While there have been notable infrastructural advancements and a drive for foreign investments, bureaucratic impediments and protracted project timelines, coupled with continued petroleum revenue reliance, remain concerns.

Qatar’s National Vision 2030

This vision encompasses human, societal, economic, and environmental components. Infrastructure preparations for the 2022 FIFA World Cup and ventures into tourism are commendable achievements. However, delays in certain project schedules have posed challenges, albeit ones they are navigating.

Oman’s Vision 2040

Oman’s 2040 blueprint seeks economic diversification, improved living standards, and human capital development. Noteworthy are its inroads into sectors like eco-tourism and digital platforms. However, the pace of diversification, elevated youth unemployment, and challenges in eschewing petroleum dependency remain.

Saudi Arabia’s Vision 2030

Saudi Arabia’s 2030 vision amounts to an extensive economic transformation. Opening its gates to international tourism and ushering in a nascent entertainment sector are laudable steps forward. Yet concerns over societal reforms, the velocity of change, and challenges in attracting global investment persist.

We the UAE 2031

Aiming to enhance the UAE’s position as a global economic hub, We the UAE 2031 follows the UAE Vision 2021’s plan to develop the nation’s healthcare, education, sustainability, and infrastructure. The vision focuses on moving the nation forward through society, diplomacy, the economy, and ecosystem. Challenges persist in fostering a genuinely diversified economy beyond petroleum and property, and there are apprehensions regarding the sustainability of certain ambitious projects amidst global economic shifts.