Financial Times FT.com

Output slides in Gulf in spite of oil boom

By Simeon Kerr in Dubai

Published: June 12 2008 02:10 | Last updated: June 12 2008 10:15

Productivity outside the oil and gas sectors has decreased across the Gulf states during the petrodollar windfalls this decade, threatening sustainable economic growth, research reveals.

Soaring oil prices have sparked average growth of 5.1 per cent since 2000, but the oil boom has only triggered employment growth at the expense of productivity, with the amount of output per hours worked outside the hydrocarbons sector falling by 0.2 per cent.

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