Economic diversification must drive meaningful transformation
Published: 04:02 PM,Feb 18,2025 | EDITED : 08:02 PM,Feb 18,2025
HH Sayyid Dr Adham bin Turki al Said, Chairman of the Economic Committee at OCCI, addressing the forum on Tuesday.
MUSCAT: Events of the ‘GCC Economic Diversification Indicators’ Forum concluded here on February 18, 2025. The event, organised by the Oman Chamber of Commerce and Industry (OCCI) in partnership with the Konrad Adenauer Foundation’s Regional Programme for Gulf States and the Smart Investment and Consulting Gateway, aimed to assess economic diversification metrics within countries of the Gulf Cooperation Council (GCC).
In his keynote address, His Highness Sayyid Dr Adham bin Turki al Said, Chairman of the Economic Committee at OCCI, emphasized the importance of economic diversification, stating: “Why is economic diversification an imperative and no longer a choice? The reason is simple: our economies are not sustainable in their current growth models, and we need new models. In response, governments in the region have taken the lead by crafting national visions that center on socioeconomic challenges—how to create jobs, how to build more versatile economies, and, most importantly, how to sustain fiscal stability.” He noted the limitations imposed by oil economies. “Hydrocarbon economies have provided strong fiscal finances and development, but they have been detrimental to diversification by creating industry concentration, particularly in exports and productive sectors.” HH Sayyid Adham urged a shift in the assessment of diversification. “Measuring diversification should not be just about meeting a target—it should reflect meaningful economic transformation,” he stressed.
He noted that current assessments of economic diversification solely rely on the oil and non-oil sectors, failing to delve deep into the drivers of growth within non-oil economies.
“We must move beyond the oil vs. non-oil binary thinking. Instead, we should focus on the smaller elements that contribute to meaningful change.” He also underlined the importance of intra-sector diversification. “Another aspect often overlooked is intra-sector diversification. Rather than focusing solely on an overall shift away from oil, we should ask: how have we diversified within the oil and gas sector over the past 60 years?” Referencing diversification trends in Oman, HH Sayyid Adham pointed out that more than 25 new export lines have emerged in the past 20 years, including refined petroleum products, treated aluminum, and steel. These industries did not exist in the 1990s or early 2000s.This diversification within industries is critical, yet we often fail to measure it, he remarked.
He also highlighted the role of the private sector within the process of diversification. “Economic diversification is not solely the government’s responsibility. The private sector must play a crucial role,” he said, noting that the private sector must play a key role in developing diversification strategies. In this regard, he called for a bridge between policy makers and the private sector in order to actualise these efforts.
The second day of the forum included three main discussions. The first highlighted macroeconomic trends influencing GCC economies, the second addressed current economic diversification measurement tools, while the third assessed the current diversification index used in GCC economies.
The event concluded with a number of policy recommendations.
In his keynote address, His Highness Sayyid Dr Adham bin Turki al Said, Chairman of the Economic Committee at OCCI, emphasized the importance of economic diversification, stating: “Why is economic diversification an imperative and no longer a choice? The reason is simple: our economies are not sustainable in their current growth models, and we need new models. In response, governments in the region have taken the lead by crafting national visions that center on socioeconomic challenges—how to create jobs, how to build more versatile economies, and, most importantly, how to sustain fiscal stability.” He noted the limitations imposed by oil economies. “Hydrocarbon economies have provided strong fiscal finances and development, but they have been detrimental to diversification by creating industry concentration, particularly in exports and productive sectors.” HH Sayyid Adham urged a shift in the assessment of diversification. “Measuring diversification should not be just about meeting a target—it should reflect meaningful economic transformation,” he stressed.
He noted that current assessments of economic diversification solely rely on the oil and non-oil sectors, failing to delve deep into the drivers of growth within non-oil economies.
“We must move beyond the oil vs. non-oil binary thinking. Instead, we should focus on the smaller elements that contribute to meaningful change.” He also underlined the importance of intra-sector diversification. “Another aspect often overlooked is intra-sector diversification. Rather than focusing solely on an overall shift away from oil, we should ask: how have we diversified within the oil and gas sector over the past 60 years?” Referencing diversification trends in Oman, HH Sayyid Adham pointed out that more than 25 new export lines have emerged in the past 20 years, including refined petroleum products, treated aluminum, and steel. These industries did not exist in the 1990s or early 2000s.This diversification within industries is critical, yet we often fail to measure it, he remarked.
He also highlighted the role of the private sector within the process of diversification. “Economic diversification is not solely the government’s responsibility. The private sector must play a crucial role,” he said, noting that the private sector must play a key role in developing diversification strategies. In this regard, he called for a bridge between policy makers and the private sector in order to actualise these efforts.
The second day of the forum included three main discussions. The first highlighted macroeconomic trends influencing GCC economies, the second addressed current economic diversification measurement tools, while the third assessed the current diversification index used in GCC economies.
The event concluded with a number of policy recommendations.