Conference Overview

​​The Gulf Cooperation Council (GCC) countries are endowed with oil and gas, which makes their economies heavily reliant on them as a main source of government revenue. Subsequently, the oil and gas sector is a key economic sector that contributes to the Gross Domestic Product (GDP) of these countries. Thus, the fluctuation of oil and gas prices makes the GCC economies vulnerable to economic instability. In order to minimize their reliance on oil and gas sector and to stabilize their economies, on one hand, GCC countries are paying more attention to diversify their economies away from oil and gas; on the other hand, they are expanding their sources of government revenue.

The principal focus of GCC’s economic development initiatives has been on economic diversification. This is evident in the formulation of targeted plans aimed at expanding the share of the non-hydrocarbon sector within the GDP. This entails the implementation of sector-specific growth programs, accompanied by the provision of distinct tax and non-tax incentives designed to stimulate private sector activity and facilitate foreign direct investment (FDI).

The economic diversification policies focus on specific sectors such as financial sector, manufacturing, tourism and hospitability, and sports by encouraging private investment and FDI. In doing so, GCC countries endeavor to encourage FDI through friendly business environment and granting various incentives. The recent development in international taxation led by the OECD with regard to harmful tax competition under Action 5 and the guidelines of global minimum tax under Pillar 2, have raised challenges to the sustainability of granting tax incentives to attract FDI in developing countries in general and GCC countries in particular. This situation increases the pressure on GCC countries to reform their tax policies in order to align with international tax norms and practices.

Key Dates and Times