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Economic diversification is the process of transitioning an economy away from dependence on a single sector or income source to multiple sectors and markets. This sort of economic shift is currently 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 change.

The GCC region is going through a transformative phase focused on financial diversity and sustainable development. Historically reliant on oil and gas, GCC economies are now making every effort to diversify their earnings sources through ambitious government-led initiatives like Saudi Vision 2030 and We the UAE 2031 that shift focus from high-risk, vulnerable and/or high-carbon markets and sectors to economies.
A strong driver behind economic diversification and green transition strategies in the GCC is the well-documented effect of environment change in the region being experienced now and in the future. The World Bank estimates that as much as 100 million people in the Middle East, consisting of the GCC, will experience water stress by 2025, with portions of the region expected to become uninhabitable by the end of the century due to water deficiency and heats.
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