Gulf’s non-oil growth fuelled by hydrocarbons

Rapid growth in non-oil sectors has raised some hopes that the Gulf countries may finally be diversifying away from a reliance on hydrocarbons. But as we explain in this Watch, the recent expansion of non-oil sectors has been underpinned by a sharp rise in government spending financed by record oil revenues. As such, the Gulf's dependence on hydrocarbons shows no sign of ending. 

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