Question

Several Arabian peninsula Countries have spent billions of dollars developing industries such as banking and steel production to ___. a. provide more jobs for larger waves of immigration b. increase the skill level of their workers c. draw investment from Western companies d. prepare for the time when their oil reserves Run out

Answer 1

The correct answer is d. prepare their time when their oil reserves run out

Step-by-step explanation:

The biggest oil reserve in the world isn’t situated in the Arabian Peninsula, but it’s in Venezuela. Due to that country's constant political and economic crises, increased by other countries embargoes, positioned the Arabian Countries on the top of the largest producers.

If we outlook the world’s production, Saudi Arabia is positioned in the first place of the rank, followed by the USA, Russia, China, and Iran. The next country in that rank is the United Arab Emirates, placed in seventh position, and Kwait in 10th, in a list of 12 countries.

But the world buys oil from that specific region of the Middle East. And that privileged postion made possible the economic growth and social development in many of those countries.

Qatar is positioned as the highest GPD Per Capita in the World. Valued in around US$ 64,000, it’s much higher than UAE’s (approximately US$ 41,000) and Saudi Arabia’s (around US$ 21,000). If we compare to the USA’s (US$ 60,000), it doesn’t sound a huge difference. But if we consider that Qatar’s population and the economy are much smaller, we’ll see that oil has provided a shift in that country. Most of those Arabian nations were vast desert lands a few decades ago.

But the greenhouse gases, most of them origininated by oil combustion, are making the world leaders rethink our energetic sources. Most of the preoccupation is climate change. Those countries have explored vastly their reserves and now are diversifying their economy.

There’s a concern about the climate, but also they’re rulers are worried that someday their oil reserves will run out, as oil is not a renewable power resource. Qatar is trying to become a World Class Country, promoting a high-level education. The UEA is following the same steps, having Dubai as one of the most important touristic destinations in the World and Abu Dhabi as Business Center. The Prince of Saudi Arabia is preparing the same steps to his country and is able to build new high-tech cities.

Answer 2

d. prepare for the time when their oil reserves run out

Step-by-step explanation:

The countries that are part of the Arabian Peninsula have economies that are almost exclusively driven by the export of oil and natural gas. While this is perfectly fine for the time being as they are one of the largest producers, and those two are the most demanded natural resources across the world, it would not always be that way. The oil and the natural gas are fossil fuels, and they are extracted much faster that the rate of the renewal, so eventually they will be spent. Once this happens, the economies of these countries will crumble overnight. Because of this, some of the countries in this region have started to develop other economic sectors, such as banking, steel production, and tourism in order to have a solid economic base when they run out of these natural resources.