Economic development in Arab Gulf States

Abstract

After the discovery of oil, many Arab Gulf States failed to diversify and expand their economies beyond the oil sector. Resource curse theory contends these states, also known as rentier states, exhibited slower economic development than other states due to their dependency on oil. Dubai has been classified as a rentier state, however, it has achieved significant economic growth and political stability. Kuwait and Qatar were selected as case studies to compare and contrast with Dubai. Dubai s growth can be attributed to its rulers decisions prior to and after the discovery of oil and the growing role of the merchant class in the state. Therefore, the resource curse theory alone cannot address the development of Arab Gulf states.