(MENAFN) According to the International Monetary Fund (IMF), in order to maintain sustainable growth, the Gulf Co-operation Council (GCC) countries have to produce a dynamic non-oil tradable sector as the main problem facing diversification efforts in the region is from market failures government failures, Gulf Times reported.
"A strategy to diversify the non-oil tradable sector must be implemented now even for the richest GCC countries," said the IMF paper 'Soaring of the Gulf Falcons: Diversification in the GCC Oil Exporters in Seven Propositions', authored by Reda Cherif and Fuad Hasanov.
IMF showed that the main problem facing diversification efforts in the GCC stem from market failures rather than government failures, with incentive structure in society needing to be changed.
"Although there is room for improving further the business environment, infrastructure, skill sets, and institutions, these are unlikely to be enough to spur non-oil exports on their own," according to the IMF.
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