GCC: A Decade Of Diversification Ahead
Economic growth in the Gulf Cooperation Council will slow over the coming decade as weaker oil prices and marginal gains in oil output weigh on the all-important hydrocarbons sector. Further gains will be driven by the non-oil private sector, and we expect a shift in the shape of growth towards private consumption and away from the export-driven model that has been in place since 2000. In addition, we expect diversification efforts to gather pace, partly due to fiscal pressure. Saudi Arabia and Oman are best placed in this regard, while Kuwait will remain behind.