Economy of the GCC and KSA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Economy of the GCC and KSA Case Solution

Economy of Gulf Cooperation Council (GCC)

The economies of GCC rely on oil as the primary source of their income. The export of oil works as the backbone of these economies. However, majority of the GCC economies extract oil from their homeland and then export it to other countries.

On the other hand, there are a lot of countries in the GCC which are not extracting oil but still they are making a significant profit from it as these countries refine, process and then export it to other countries.

For past few decades it has been noted that the GCC government is spending a lot of fiscal revenues towards health, infrastructure and education. This increased the living standards for these economies. On the other hand, governments are focusing to make trade friendly policies to encourage the private sector.

Furthermore, the private or semi government sector of these economies has shown a tremendous growth in the last decade as the automobile, telecom and health care sector is expanding with a higher pace in this region as compared to western economies.

Furthermore, the main human resource of these economies is the migrants from different countries as, these economies use these migrants as their labor force for operations and other specific tasks.

The reason behind selecting the migrants is that they cost lower than the local labor and the strategic vision of these economies suggests that they don’t want their people to become labor or to do odd jobs.

The other aspect regarding these economies is that these countries are also focusing to decrease their power consumption and to switch to other methods of producing energy. For this purpose, most of these countries have been switched to wind mills, wind turbines and solar energy solutions including the solar panels and glass etc.

However, it has been noticed that GCC economies have sufficient oil and natural resources to produce energy for the next 100 years but they are still cautious to reduce the use of natural resources such as oil and coal to produce energy. These governments believe that increased fuel and energy consumption is also increasing pollution and carbon emission which are harmful for their population.(IMF, 2016)

Additionally, gold and oil are big economic indicators for these countries as they generate a significant amount of the total Gross Domestic Products (GDP) for these countries. Moreover, the GDP of the GCC was almost $339 billion in 2015 which is expected to grow to $469 billion in 2020. (Times, 2016)

Finally, from the facts and analysis above it can be seen that the economy of the GCC is stable and favorable for their residents as well as migrants. The GDP and other indicators are showing positive and acceptable performance of these economies. However, there are some future aspects which will be discussed later on in the study but before going further, the analyst will take a closer look specifically towards the KSA (Kingdom of Saudi Arabia) economy in the next section.

Economy of the Kingdom of Saudi Arabia (KSA)

The economy of the KSA is an oil based economy as, the major portion of all the revenues come from the export of oil and other related products. Moreover, Saudi Arabia is the largest petroleum exporter in the world having almost 18% of the global proven oil reserves.

The private sector of the country depends heavily on the foreigners and the major portion of the labor force relies on the migrants from different parts of the country. Furthermore, the country plays a vital role in OPEC for a long time.9.......

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution