Over the past decade, manufacturing levels and manufacturing shares of non-oil GDP were growing in the GCC economies. However, this paper shows that the importance of manufacturing or non-oil GDP in general was declining relative to the oil sectors in these countries. This paper also shows that manufacturing is strongly linked to non-oil economic growth in the GCC over the long run, in a way that income and population are both important to stimulate manufacturing in the GCC, especially income. In the short run, manufacturing in the GCC countries has no significant effects on stimulating the growth levels of real non-oil GDP and that government spending might not be effective in terms of deriving the growth of non-oil GDP or stimulating diversification efforts in the GCC countries over the sample period.
Al Awad, Mouawiya, "The Role of Manufacturing in Promoting Sustainable Economic Growth in the GCC" (2010). Working papers. 50.