Oil-rich countries in the Middle East have been trying—and failing—to diversify their economies, according to a report from the Peterson Institute of International Economics. Relying on oil exports is especially risky, right now, in part because global anti-emissions efforts figure to make it less profitable in decades to come, the report warns. It's an important trend to watch, because the region faces economic challenges—youth unemployment hit 30% in 2017—and when oil prices drop, social discontent can follow, as economies weaken. Bahrain, Oman, and the UAE are the most diversified (and best prepared, economically), the report finds; Iraq, Libya, Algeria, and Saudi Arabia remain most vulnerable to oil's ups and downs. |