GCC private sector to play bigger role in economy

August 12, 2014 9:06 am

High hydrocarbon prices and increased oil and gas production in GCC countries have boosted national incomes and provided governments with large surpluses. But there has been a recognition in these countries that to support the growth momentum and create sustainable development, they need to diversify their sources of income beyond hydrocarbons. They have therefore used their sizable surpluses to finance large projects with the aim of diversifying their economies and creating additional pockets of growth. As a result, the contribution of nonhydrocarbon sector to growth has increased in recent years, and is currently the main driver of growth in most of these countries, said QNB Group in a recent report. It says a significant part of investments are going into infrastructure projects such as the building of new cities, roads, transport networks, real estate and power and water stations. This is partially to accommodate the region’s growing populations but mainly to create infrastructure that enables the private sector to play a bigger role in the economy.