Analyzing The Objectives Of Economic Diversification Strategies For Smes In The Gcc

Abstract

Small and medium-sized companies are the pillars of the economy in developing countries because they are the basis for the formation of large companies in any economy by strengthening the developing economy in the region. In this study, the researcher presents an analysis of the role of small and medium enterprises in achieving economic diversification in the GCC countries, as well as studying the leading experiences of these countries relying on economic diversification to emerge from the crisis of low oil prices internationally. The study aims to identify the role played by small and medium enterprises in achieving economic diversification, reducing reliance on natural resources and stimulating the economy in the region. The researcher used the tools of logic reasoning and deviation analysis tools to examine and test the most important strategies for international and regional experiments in activating economic diversification through small and medium companies using the statistical method in analyzing the experiences of many countries and studying the effect of small and medium companies on the national economy, as well as using the descriptive approach via consulting the economic and accounting literature through books and scientific researches for the purpose of reaching valid and reliable, neutral, and non-judgmental results. The researcher reached a number of results that would raise the role of small and medium enterprises in achieving economic diversification of the GCC countries. The most important of these is that countries that encourage the SME sector have the highest levels of economic diversification compared to other GCC countries. The researcher also suggested strengthening the macroeconomic stability of GCC countries, improving regulatory and institutional frameworks, making markets more flexible, stimulating innovation for goods and services, and creating jobs for economic diversification