Arab Gulf Economies: Challenges for the 21st Century With Special Reference to the UAE Economy

Arab Gulf Economies: Challenges for the 21st Century With Special Reference to the UAE Economy

  • 11 May 1999

The economies of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, collectively referred to as Arab Gulf economies, have some common denominators and have witnessed uneven growth resulting mainly from exogenous factors. The challenges for the 21st Century are promising provided certain favorable variables prevail or alarming given other negative trends. Alternatively, a combination of positive and negative factors may shape the future of their countries.

This review of the Gulf economies was presented bearing in mind their dependence on oil and oil prices. A statistical estimate of the price elasticity of demand for oil was understood in the context of fluctuations in oil prices from peaks in 1974 and in 1979 to low levels in the mid I980s and in early l999. Corresponding macro data over a twenty-year period was also analyzed in an attempt to identify sources of economic growth in the Gulf economies.

Based on the empirical results of this study, an interpretation and an analysis of the challenges for the 21st Century was presented, followed by a close examination of the region’s endogenous factors such as its population growth and human productivity on the one hand and other exogenous factors such as globalization and economic blocs on the other hand.

In view of the future challenges facing the Gulf economies in general and the economy of the UAE in particular, the concluding section embodied some policy recommendations.

Share

LECTURER

Tuesday 11 May 1999

-

Tuesday 11 May 1999

-