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Economic diversification is the process of transitioning an economy far from dependence on a single sector or income source to numerous sectors and markets. This kind of economic shift is presently underway in the Gulf Cooperation Council (GCC) region, where Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are experiencing fast socio-economic improvement.
The GCC area is going through a transformative phase focused on financial diversification and sustainable development. Historically reliant on oil and gas, GCC economies are now striving to diversify their revenue sources through ambitious government-led initiatives like Saudi Vision 2030 and We the UAE 2031 that shift focus from high-risk, susceptible and/or high-carbon markets and sectors to economies.
A strong chauffeur behind economic diversity and green transition plans in the GCC is the well-documented effect of climate modification in the region being experienced now and in the future. The World Bank approximates that approximately 100 million people in the Middle East, consisting of the GCC, will struggle with water stress by 2025, with parts of the area anticipated to become uninhabitable by the end of the century due to water scarcity and heats.
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