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For most of the last three decades, our region has enjoyed prosperity and high levels of growth. This was driven by oil wealth, and the regional governments’ ability to channel oil revenues into building First World infrastructure and living conditions.
However, oil market dynamics have changed – catalysed by the shale revolution, the reduced cost of producing renewable energy, and a global focus on carbon emissions. The pandemic has added to the challenges as core hydrocarbon demand dropped globally.
Today, there is broad recognition that GCC countries are in a race against oil prices, which is notable as countries have accelerated the economic diversification process.