Economic Transformation and Dependency on Oil

The Persian Gulf has seen significant economic transformation fueled predominantly by oil wealth, shifting from small fishing villages to modern urban centers like Dubai and Abu Dhabi. While these cities market themselves as global business and tourism hubs, their long-term sustainability is questionable given their heavy reliance on oil revenue. Generous tax policies and vast contracts attract international interest, but this reliance on a non-renewable resource raises concerns about future economic viability once oil reserves deplete. As a result, the Gulf states are at risk of becoming industrial outposts, dependent solely on oil exports while struggling to maintain diverse economies.