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Building economic stability through effective natural resource management and renewable energy investment in GCC countries

Author

Listed:
  • Yasir Ahmed Solangi

    (Prince Sultan University)

  • Cosimo Magazzino

    (Roma Tre University
    Western Caspian University)

Abstract

This research addresses the pressing need to enhance economic stability in Gulf Cooperation Council (GCC) countries through effective natural resource management, including both mineral and hydrocarbon resources and renewable energy investment. Given the significant dependence on hydrocarbon earnings and the increasing calls for sustainable development, diversification of energy sources and economic activities is essential. This study employs the analytical hierarchy process and fuzzy technique for order of preference by similarity to ideal solution methods to evaluate and prioritize various criteria and policy strategies. The analytical hierarchy process (AHP) method is utilized to assess and rank the criteria and sub-criteria. In contrast, the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method ranks the policy strategies for improving economic stability through natural resource management and renewable energy investment. The AHP results show that social and environmental impacts, economic diversification, and development of the energy and mineral sectors are the most critical criteria for enhancing economic stability. This approach fosters a more balanced economy, reduces dependence on fossil fuels, and ensures sustainable growth. Furthermore, fuzzy TOPSIS results prioritize diversification of energy sources, investment in renewable energy infrastructure, and initiatives in mineral resource management as the most effective strategies. These findings offer important guidance for policymakers and stakeholders in advancing sustainable development and enhancing economic stability in the GCC countries.

Suggested Citation

  • Yasir Ahmed Solangi & Cosimo Magazzino, 2025. "Building economic stability through effective natural resource management and renewable energy investment in GCC countries," Empirical Economics, Springer, vol. 68(5), pages 2327-2355, May.
    • Handle: RePEc:spr:empeco:v:68:y:2025:i:5:d:10.1007_s00181-024-02706-9
    DOI: 10.1007/s00181-024-02706-9
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    Cited by:

    1. Solangi, Yasir Ahmed & Magazzino, Cosimo, 2025. "Evaluating financial implications of renewable energy for climate action and sustainable development goals," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).

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    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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