Page 65 - Nigeria one mag 4 edition en

Economic diversification through alternative energy

resources

Diversification is a long process
that requires structural changes
and new initiatives to support new
sectors. In terms of fiscal revenue,
Kuwait, Saudi Arabia and the UAE
have been more successful in
diversifying their economies
compared to their GCC neighbours.
Between 2014 and 2019, Kuwait was
able to reduce its dependence on
oil revenues from around 75% to
62%. Most of these countries still
depend on hydrocarbons. For
example, for Kuwait, hydrocarbons
account for about 90% of total
merchandise exports, they
represent 85% for Qatar, 70% for
Saudi Arabia, 53% for Bahrain and
60% for Oman. Only the UAE have
made more effort to diversify
export structure, with
hydrocarbons representing only
Image d'illustration,Ressources énergétiques
20% of total merchandise exports.
The sectors of construction, The oil price volatility, coupled with fossil fuels are leading these coun-
infrastructure, financial services the negative impacts of COVID-19 tries to invest more in alternative
and tourism have been among the on the global economy, has forced energy sources. The solar sector
industries in which the Golf oil companies to delay or cancel represents an important option
Corporation Council countries some of their investments. Saudi given the favorable natural
invested the most.. Between 2010 Aramco has delayed two major conditions, but the countries also
and 2019, Qatar’s tourism receipts expansion projects in the Marjan have opportunities in the wind
increased from 3% to 11% of its and Berri complexes. Qatar sector. In 2017, the UAE launched
GDP, while its construction sector’s Petroleum has delayed the start of its Energy Strategy 2050, with
value rose from 6% to 15% of GDP. the first phase of its North Field which the government plans to
At the meantime, tourism revenues LNG expansion project. Kuwait Oil invest AED 600 billion by 2050 to
have increased from about 4 Company (KOC) has reportedly meet the growing energy demand.
percent to 9 percent of GDP in the delayed a US$400 million project to Saudi authorities have said they
uae, which has become an develop heavy crude facilities plan to generate 50 percent of the
important commercial hub for the Investments in renewable energy kingdom's electricity from
region. Qatar has largely invested sources are also seen as part of the renewable sources by 2030. In July
in the banking sector and the ratio economic diversification strategy. 2020, Saudi Arabia's ACWA Power
of total banking assets to GDP With the abundance of these selected Shanghai Electric as the
increased to around 240% of GDP sources in the Middle East and engineering, procurement and
in 2019. Bahrain, helped by its Africa and the fact that crude oil construction (EPC) contractor for
offshore status, has also invested reserves are disappearing, the the fifth phase of the Mohammed
in the banking sector : total ban- higher environmental costs of bin Rashid Solar Park.

Energetic transition 65