Few observers could have failed to notice the number of businesses currently expanding into the Middle East, as international investors seek to capitalise on what has been dubbed the ‘Gulf goldmine’. The economies of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – the six nations comprising the Gulf Cooperation Council (GCC) – have undergone rapid growth and expansion. Indeed, recent reports show that (notwithstanding the recent fall) Saudi Arabia’s stock market has risen almost eight-fold during the past five years and until recently was estimated to be worth more than $1trn (£572bn). Likewise, earlier this month the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, confirmed Dubai’s budget surplus of $1.58bn (£900m) for the 2006 fiscal year. Kuwait, Abu Dhabi, Bahrain and Qatar have also seen huge economic growth, with soaring oil revenues funding investment.
This tremendous growth has been driven partly by a united GCC effort to develop the region’s economies, spearheaded by government policies. Diversifying the economies to reduce reliance on the oil and gas sector has been a key objective, with the need to create jobs for the region’s youthful population. In Oman, for example, an estimated 71% of the population is under the age of 30.
