Artist's rendition of King Abdullah Economic City Saudi Arabia

The Arab oil states of the Persian Gulf have been investing their accumulated oil wealth in massive projects intended to create economic centers that will ensure their economic development far into the future. Entire cities are being built from scratch using some of the latest technology and innovative architecture in the world to create planned municipalities, which are specially designed for particular industries or uses, or which incorporate residential, commercial, tourist and entertainment uses.

While these Arab states are not the only countries that are trying to jumpstart development by creating entirely new cities (China is another prime example), their projects are notable for their futuristic looks and their cutting-edge technology, particularly in the area of energy conservation. Although their wealth is based on oil, the leaders of these states are determined that their economic futures not depend on sales of fossil fuel.

The Arab states of the Persian Gulf
Projects like these have opened up enormous opportunities for foreign businesses in the Gulf States, and the growing economic unity of the area has also made it a very attractive target for trade and investment.

In 1981, the Arab monarchies of the Persian Gulf, Bahrain, Saudi Arabia, Oman, Kuwait, Qatar and the United Arab Emirates formed the Gulf Cooperation Council. The aim of the GCC was to increase political and security cooperation, as well as economic, but the economic cooperation has proceeded with the fewest barriers. The countries formed a free trade zone in 1983, a joint patent office, a commercial arbitration center and a customs union. On January 1, 2008, they officially established a joint market – all GCC citizens and bodies are to be treated as nationals and national entities within the GCC region, particularly when it comes to economic activities and trade. The plan is that, by 2010, the countries will establish a common currency.

The combined states are a true economic powerhouse. Collectively, the GCC countries possess almost half of the world's oil reserves. In 2007, its GDP was $1,022.62 billion (IMF April 2008). Although the recent fall in world oil prices and international financial problems have affected the GCC states, these factors are unlikely to have a major effect on these projects. These countries are working with billions of assets accumulated over the years from oil exports, and these projects were planned and begun before the recent run up in oil prices.

What's on the Drawing Board

Masdar City Headquarters touted as the first "positive-energy" building

Saudi Arabia has six "economic cities" in the process of development. One of the major ones is the King Abdullah Economic City pictured above. Abu Dhabi, UAE, is building Masdar City, a city devoted to environmentally-friendly industries. The city will rely entirely on renewable energy sources.

Cornell campus in Education City, Qatar

Education City is already operating on the outskirts of Doha, Qatar. The city is entirely devoted to educational facilities from grade school through research level. Numerous institutions of higher education have established campuses there, including branch campuses of six U.S. universities. The vision is that these facilities will pool knowledge and work with businesses and the public sector to generate new ideas and initiatives that will have ripple effects across the economy.

Future Ferrari Theme Park

There is fun planned, too. Abu Dhabi’s Yas Island development aims to make the emirate an international tourist destination. Among the many attractions planned for the island is a Ferrari Theme Park. A joint project of Arab property development company Aldar and the Italian auto maker, the park's rides and amenities will center around Italian culture and all-things Ferrari.

Views of "Tower in Motion" in Various Configurations

Dubai, UAE, plans to construct the first of many "towers in motion." Based on a concept by an Italian architect, the towers are manufactured in modules that are then assembled on site in a relatively short time. Each floor of the completed building will rotate separately as commanded by voice-activated controls. If you don't like the view, change it! The tower will also generate its own wind and solar energy, as well as enough power for five equivalent buildings. Dubai also plans to begin mass assembly of the modules for export to other countries for construction of their own towers.

These types of projects, and the many enterprises needed to support all the people involved in the projects, have made the Arab states of the Persian Gulf a booming market.