Economic Policies of GCC Countries in the Era of Low Oil Prices and Their Policy Implications for Korea

5 Pages Posted: 2 Apr 2021

See all articles by Kwon Hyung Lee

Kwon Hyung Lee

Korea Institute for International Economic Policy

Sung Hyun Son

Korea Institute for International Economic Policy

Yun Hee Jang

Korea Institute for International Economic Policy

Ryou Kwang Ho

Korea Institute for International Economic Policy

Date Written: February 9, 2021

Abstract

Over the past several decades, the six member countries of the Gulf Cooperation Council (GCC) have implemented economic policies for industrial diversification to lessen severe dependence on the oil industry. Such policy efforts have been driven by their awareness of macro-economic and structural risks from heavy volatilities in international oil markets in terms of fiscal and trade sectors. For instance, the drop in international oil prices reduces export performance in the oil and natural gas sectors, which in turn results in a decline in the stability of fiscal revenue. The recent trends of low oil prices since 2014, as well as high unemployment rates, have strengthened the policy regime for industrial diversification and job creation supported by mid- to long-term economic plans of the GCC countries. This report reviews what has been emphasized in the areas of industrial, employment, trade and investment policies. We then derive implications for Korean companies and policymakers for sustainable cooperation between Korea and the Middle East.

Keywords: GCC, Low Oil Prices, Economic Diversification

Suggested Citation

Lee, Kwon Hyung and Son, Sung Hyun and Jang, Yun Hee and Kwang Ho, Ryou, Economic Policies of GCC Countries in the Era of Low Oil Prices and Their Policy Implications for Korea (February 9, 2021). KIEP Research Paper, World Economy Brief 21-03, Available at SSRN: https://ssrn.com/abstract=3817132 or http://dx.doi.org/10.2139/ssrn.3817132

Kwon Hyung Lee (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Sung Hyun Son

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Yun Hee Jang

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Ryou Kwang Ho

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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