Saudi and UAE top economic diversification index in GCC

TDT | Manama                      

The Daily Tribune – www.newsofbahrain.com   

Report by Julia Cassano

The UAE and Saudi Arabia enjoy top ranks in the second edition of the global economic diversification index in the Gulf Cooperation Council nations launched by the Mohammed Bin Rashid School of Government.

MENA region, the report said, improved signigicantly over the past decade, as many oil-reliant countries have shifted their focus towards advancing their economies.

The index highlights the UAE’s and Saudi Arabia’s efforts to diversify economies, particularly in non-oil sectors such as tourism, infrastructure, and logistics, which were impacted negatively by the COVID-19 pandemic.

Saudi Arabia, ranked among the bottom 10 nations in the 2000s, has implemented new policies that have accelerated its economic diversification.

“Economic diversification provides multiple benefits, including macroeconomic stability, economic growth, job creation, and development alongside promoting greater private sector activity, more sustainable public finances, as well as greater skill diversity in the labour force”, the index said.

On the 2023 EDI, the top 10 most diversified economies remained the same, with the United States, China, and Germany holding the top positions.

Additionally, the index said nations ranking in 4th to 10th place only contain a 6-point difference, again highlighting the strength of diversification among the highest-ranked countries.