Innovation and Entrepreneurship for the Diversification and Growth of the Gulf Cooperation Council Economies

Abstract

The Arab States of the Gulf region have vast reserves petroleum. The reduction in oil prices since summer 2014, and their volatility pose strong challenges to the six of Gulf Cooperation Council (GCC). In the present contribution, we argue that, in the long run, diversified economies perform better than mono -sector economies. Also, innovation and entrepreneurship are key drivers for the diversification and growth of GCC economies. More specifically, in this article we analyze the innovation performance of the GCC economies and we consider their innovation strategies. In addition, we provide an overview of entrepreneurship in the GCC countries to grasp its current entrepreneurship in the GCC countries to grasp its current state, aiming at identifying the conditions to foster entrepreneurship in order to develop the non-oil private sector. Finally, we discuss the policies that would be required to boost innovate and stimulate entrepreneurship in the Arab states of the Gulf with the aim of diversifying their economies and enhancing their growth.