Why Do The Gulf States Build So Many Megaprojects?
the capital city of Saudi Arabia, Ryiadh
The Gulf States, including Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Qatar, and Oman, predominantly rely on oil and gas extraction for their economies. Mega projects like the Burj Khalifa, Neom, and Jeddah Tower reflect attempts to diversify away from fossil fuels due to the "Dutch disease," where reliance on a single resource negatively impacts competitiveness.
The phenomenon, driven by oil and gas discoveries, has made these economies vulnerable. While attracting tourists is a goal, the main motive behind these projects is business diversification. Leaders aim to secure foreign investment by creating an attractive environment for businesses through low taxes and impressive infrastructure.
However, the ethical issue arises with a significant human cost, exemplified by poor worker conditions and human rights violations, as seen in the construction of projects such as the 2022 Qatar World Cup infrastructure. The tension between economic growth and human rights remains a challenge for these Gulf States.
