IS IT SAFE TO DEPEND ONLY IN ONE SOURCE OF INCOME?-THE CASE OF OIL IN THE ARAB COUNTRIES?

Abstract

We live in a developed world in which countries interact with each other, and there is open trade. However, I have always wonder how countries could only depend on one source of income, like oil in the Arab countries. Economy, dependency on one stream of income is dangerous for a country, as it is more susceptible to financial and economic crisis; also, to changes in the political and social environment. In this study, I have analyzed natural resources and how they are a curse or a blessing following different studies. Moreover, I have made a study of oil specifically in United Arab Emirates, Kingdom of Saudi Arabia, Oman, Qatar, and Kuwait. I have discovered a relationship between the increase in the population in the country and the growth of gross domestic product. The use of ¿Total Investment¿ and ¿Foreign Total Investment¿ have not been successful. Finally, the effect of the price of oil is very low.