The Oil of Tomorrow for GCC Countries

The oil of tomorrow for GCC Countries

Date: 01 April 2017

In the early 20^th century the oil was discovered in GCC countries but not until the late of 20^th century GCC countries benefited from the oil discovery after the British colonizing ended and independent granted to GCC countries, from that period the oil has become the wealth of past present and future for all GCC countries to develop the infrastructure, education, health and economic, until the economic fluctuation happened and crash oil prices many times and GCC countries suffered from recessions although it was not affected that much because the world economy was not globalized like today where every western economic crisis strike all countries, but it was still affecting the GCC and the economy.

The cycle of oil price crash continue throughout the 20^th century and the 21^st century as well, but in the 21^st century something happened it wasn’t happen before the oil prices went crazily up to $100 and more which made GCC countries rich more than they can imagine and things started to look promising and huge projects and economic changes been initiated, but in 2014 the cycle of  oil crisis crash strike again the prices went down again and the GCC countries entered into shock because they cant afford the economic changes and huge projects they instituted and they cant stop it as well. Especially that the region is in war with terrorism and political revolution in some countries that result in civil war which sucked the GCC countries budget into war as well and made it worse.

Today as after any oil price crisis crash there is a talk about diversifying the GCC countries income and economic resources which during the past 50 years was repeated after every crisis for oil prices crash, but why until now GCC countries did not success in diversifying their income and still the oil consider as 90% of their income? The answer is education and human development. GCC countries developed their infrastructure, government system, political system, economic system, health and education system then before the era of oil discovery, but all these development tools were imported from western countries and on top of that even the minds made it and managing it have been imported and still everything is imported, from nails to food to cars even medicine everything is imported from the world to GCC countries, this made it so exhausted on the economy because whatever money the country is making it goes to importing goods and services that means they money is going outside the countries but not coming back in any form and whatever prices the producers ask GCC countries have to pay even borrow from money market to cover the differences in income and expenses. This cycle has gone now for 50 years and still and no matter how much GCC countries made from oil or other resources they will not cover their expenses and in the same time making investment in infrastructure and provide service for citizens.

The only answer for the GCC problem is to invest in human capital not to give them higher degree like Msc or PhD instead to build their mind to be creative, innovative, educative and productive, GCC need to make their people produce goods and services that cover the local needs and in future export to other courtiers not just oil but goods and services that made by human mind like western and eastern courtiers do, now even these days small countries are producing using their people, local resources and even historical culture and customs for tourism, with amount of money GCC have today they can easily invest in people and build infrastructure that can produce different kind of goods and services the only problem facing this initiative is to embed it in the practices and strategies of the system since the system is still talking about changing but it doesn’t have the mentality, tools, tactic plans, human capital to make it happen in real life, the past 50 years was an opportunity to change but it did not happen today its an opportunity to change will we ask the same question after 50 years?

The opportunity is here and now people in the GCC can see it very clearly now they cant continue living as they did and their fathers did, change must take place now and with clear tactic plans build stage by stage that can be seeing and make difference with time, the education system is the first step each developed country started with to be what they are today knowledge, science, education combined with human mind, creativity, innovation and experiment is what needed to build strong nation and countries, the future oil for GCC countries is human capital which will last and never crash down or fluctuated in economy crisis or run out as natural resources.

Mohamed Alzayani

Assoc.CIPD and Assoc.IHRME Certified ROI for human capital development