Contents :
In a broad-based but comprehensive survey of economicdiversification in the GCC countries, Baroudi stresses that, despite thevarying degree of seriousness and consistency with which this objective hasbeen pursued there has been progress in the establishment of downstreamindustries (petrochemicals, fertilizers and metals), some manufacturing,agriculture (albeit at a high cost in subsidies) and services (in the form offinancial institutions and tourism). The author examines changes in thecontributions to GDP of each sector and some of the problems encountered in thediversification process â?? for example the scarcity of water resources inagriculture or the similar structure of production of GCC countries indownstream activities. Yet, comparing the periods 1996-98 with 1981-85 showsthat the contribution of oil sector to GDP has fallen from over 60 percent inKuwait and Oman to under 40 percent, and from over 40 percent in Saudi Arabiaand the UAE to under 35 percent, though this data is not independent of theprice of oil.