Middle East Economies: A Response - Essay Example

RESPONSE: A STUDY ON MIDDLE EAST ECONOMIES DEPARTMENT 15 DECEMBER Middle East Economies: A Response Reply #1 I agree with you on this. The Gulf States will continue to grow economically but at a much slower rate. There is a need for the Gulf States to diversify their economies to accommodate other sources of income so as to supplement diminishing oil wealth. With religion playing a significant role in these economies, there is a need to liberalize the economies to allow foreign investors to do business freely.

It is true that the projected growth rates for the region are 3-5%, although some analysts have projected higher growth rates. Most Arab states have realized that their oil wealth will end at some point and have already started to diversify their economies. One such state is Dubai, one of the Emirates in the United Arab Emirates (UAE). Dubai mastered the skill of diversification so well that non-oil revenues are at a staggering 71% in 2014. Other countries like Saudi Arabia are also following this trend.

There is still much to be done among the Arab nations in terms of economic growth, but current trends seem to be towards the positive direction. #Reply2 I think the idea that the Middle East has an unsustainable population is a bit exaggerated. The unemployment in the Middle East is way lower as compared to the rest of the world. The per capita rates in Middle East are also very high. I n addition, the building boom of the 2000s has led to increased employment opportunities. I also think the population of the Gulf States is not growing as fast as the economic is growing.

Owing to this fact, I see a possibility where the Gulf may be forced to import skilled and unskilled labor in high numbers in the near future. However, there is some truth in your argument. The number of youth being educated in the Gulf is becoming increasingly greater than the economy can sustain. There is a likelihood that most of these young educated citizens will not find employment that is matched to the education they possess. The effects of this mismatch are already being felt in cases where people are employed, but they do no work the whole day.

For these countries to provide employment to all skilled youth, they need to invest more in the service industry.  Bibliography "Dubai – Rising and Shining Again." Mashreq. 2013. Accessed December 15, 2014. http://www.mashreqbank.com/uae/en/images/mashreq-country-report-dubai-rising-and-shining-again-042013.pdf. "Ernst & Young Raises UAEs Growth Forecast." Emirates 24/7. 2013. Accessed December 15, 2014. http://www.emirates247.com/business/ernst-young-raises-uae-s-growth-forecast-2014-04-22-1.546517. Hamdan, Sara.

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http://www.uaeinteract.com/news/default3.asp?ID=242. "The Gulf Research Meeting 2014: Workshop Details." The Gulf Research Meeting 2014: Workshop Details. 2014. Accessed December 15, 2014. http://grm.grc.net/index.php?pgid=Njk=&wid=Mjg=.