ABSTRACT
This chapter deals with the oil-producing countries of the Arabian Peninsula namely, Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman. But the achievements, significant as they may be, have only put them on the road to economic progress; they have not yet reached the point where their countries can sustain economic growth independent of oil revenues. Apart from a short and unsuccessful trial in the mid-1960s, another attempt was made in March 1982 when OPEC agreed to introduce an output ceiling and to adopt an output allocation programme. Since oil is a depletable natural resource and since our countries are developing nations which rely on a diminishing asset for their future progress and welfare, it is essential to define the oil output policy in terms of economic development.
