How Gulf countries' golden schemes are paving the way to a sustainable future

The Gulf Cooperation Council (GCC) is at a transformative moment as it pivots from its historical reliance on oil towards a more diversified, investment-attractive economy.

The International Monetary Fund (IMF) projects the growth of GCC economies at an average rate of 3.5% in 2025 and 4.2% in 2026, exceeding the global average of 3.3% and projected growth rates for advanced economies. However, the current need for economic diversification coincides with the accelerating global transition to renewable energy and electrification, a transition that is reshaping entire economies previously dependent on fossil fuels.

The World Bank reports that the non-oil sector grew by a “robust” 3.7% in 2024 and will remain a key driver of economic growth in the region, projecting growth rates of 3.4% and 3.5% for 2025 and 2026 respectively. This comes amid increasing interest in the GCC, both in business and tourism.

So how are the GCC member states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) – adapting to this landscape? Through strategic initiatives, transformative programmes, modern infrastructure and a high quality of life that are driving significant investment, and attracting and retaining top talent to ensure a prosperous future.

Bahrain began the transition to a diversified economy in the late 1960s with the launch of its industrial strategy; Saudi Arabia followed suit by adopting plans to diversify its economy in1970. Every GCC country has increased their economic diversity indicator score in the first two decades of the 21st century. However, with the oil market increasingly beset by global events, accompanied by the associated price shocks, and the move towards renewable energy signalling a long-term decline in demand, economic diversification has become a top priority in the region. This is underscored by a commitment to attracting investment and continued growth in the non-oil sector.

Key to this shift are industries such as financial services, technology, manufacturing and tourism. GCC member states are also expanding into emerging industries through “golden” schemes that have been designed to attract investment, retain talent and position our countries as global leaders.

Bahrain’s “Golden Licence” scheme has already attracted $2.4 billion in investments and is expected to create 3,000 jobs. Among the beneficiaries is a Swiss subsidiary planning to build a $200 million titanium plant that will produce 4,000 tonnes of the metal annually – a huge boost to industrial manufacturing in Bahrain. The success of this programme has led to other countries exploring the option of issuing “golden licences” for global businesses and strategic projects. Dubai is considering them as they look to attract more investors and businesses, as is the overall UAE government.

Many of the GCC countries already have a highly skilled local talent pool; however, these diversifying industries need to broaden it to sustain their rapid expansion. So how do you attract global talent to the region? By making it easier for businesses and people to live and work in a new country.

Initiatives like Bahrain’s “Golden Residency” programme are important here. This gives qualifying investors, talented individuals and others a permanent residency; a significant expansion of the previous two-year allowance. It also comes with the ability to sponsor residence permits for immediate family members – an attractive proposition for families seeking not only employment opportunities, but also a high quality of life, including a safe, family-friendly community.

The UAE “Golden Visa” scheme and Saudi Premium Residency visa, or “Saudi Green Card”, are also designed to attract entrepreneurs and professionals in fields like medicine, science, engineering and education. Qatar’s similar five-year residency permit builds on the success of its five-year foreign investor residency permit, which was launched to augment its economy in the run-up to the FIFA 2022 World Cup. Oman also has two residency programmes aimed at investors.

The digital transformation is affecting every industry, which makes it a priority to train a future-ready workforce. Attracting top talent in these fields across the region will not only create a critical mass of innovative expertise and tech talent, but will ensure the expanding industries outside the oil sector enhance their global reputation.

Building competitiveness in the global market relies on a number of factors: among them infrastructure, transport connections, and the financial and regulatory environment. GCC countries are addressing these to fast-track business set-ups, allocate land for industrial sites and offer a stable regulatory environment. This makes the region attractive for businesses looking to relocate or open a regional hub.

For example, within the UAE there are 40 multidisciplinary free zones – areas that offer a highly attractive environment for businesses. Expatriates and foreign investors can have full ownership of companies, access to simplified company formation processes, and benefit from 100% tax and customs duty exemptions. Oman and Qatar also have comparable free zones set up in strategic locations with access to trade and transport routes.

Bahrain is one of the most economically open of the GCC states: The entire country is considered a free zone, complemented by industrial areas that provide high-quality infrastructure, additional incentives and easy access to ports of entry. Notable industrial parks include the Bahrain Logistics Zone, the Express Cargo Village at Bahrain International Airport (BIA) and the Bahrain International Investment Park, which attracts about 80% of its investment from international sources. On top of this, it also has attractive tax offerings, minimal customs duties and 100% foreign ownership in most business activities.

As part of its Vision 2030 plan to boost their global competitiveness, Saudi Arabia has legally committed to attracting new investment. The new law grants investors, both domestic and foreign, a number of rights and protections designed to enhance and promote fair competition. This unified investment framework, with simplified and transparent procedures, will make it easier to invest in the Kingdom. It is backed up by major initiatives, such as the development of the renewable energy-powered city NEOM. This innovation and technology hub on the Red Sea is an enticing destination for both businesses and tourists.

As the GCC looks to a future powered by successful investment across a variety of sectors, these programmes will collectively enhance its ability toaccelerate economic development and become a global powerhouse with a resilient and sustainable economy.