Financier №3 (43) 2026

The “Dutch disease” - a phenomenon where the development of resource‑based sectors is accompanied by stagnation in other areas of the economy - has affected many countries. The Netherlands, where the phenomenon was first identified, was later joined by a number of oil‑rich countries. Some of them even managed to use the windfall profits from mineral extraction wisely. Let’s look at three of the most striking examples of such success.

Norway: Petrodollars Put Aside

Norway is among the top 20 largest hydrocarbon producers in the world and simultaneously ranks seventh in terms of GDP per capita. Interestingly, before the discovery of major oil fields in the late 1960s, fishing was the backbone of the country’s economy. In 1963, Norway declared sovereignty over its subsoil resources, and the first field, Ekofisk, was discovered in 1969. During the oil boom, the local parliament passed a law requiring companies to process raw materials domestically, supply the bulk of petroleum products to the domestic market, and develop their own equipment manufacturing capabilities to save on imports. Starting in the early 1990s, the country began accumulating surplus revenues from oil exports in a specially established government pension fund, the Government Pension Fund Global, which invests in assets worldwide to avoid creating an artificial bubble in its own financial market.

Today, the assets of the Global Fund exceed $2.2 trillion - four times Norway’s GDP

Saudi Arabia: From Partnership with the USA to Diversification

The Kingdom of Saudi Arabia, one of the three largest oil exporters in the world, appeared on the map only in 1933. A few years after the state was formed, American geologists helped it discover vast oil fields.

Since the mid‑1970s, the country has been investing its surplus revenues in developing its own industries, becoming one of the world’s leading producers not only of petrochemicals but also of steel and rolled steel products. In the 21st century, the Saudis have begun to rapidly develop other sectors as well, including cosmetics and pharmaceuticals. Overcoming excessive dependence on hydrocarbons, diversifying the economy, and creating opportunities for investment in import substitution are key development vectors for a country where oil is still flowing abundantly.

UAE: Oil as a Starting Capital

The United Arab Emirates (UAE) has long been among the top ten oil‑producing countries globally and ranks in the top twenty for GDP per capita. Energy production in the emirates of Abu Dhabi and Dubai has been underway since the 1960s. At that time, they were part of the Trucial Oman - a British protectorate. Immediately after the establishment of the independent UAE in 1971, its authorities began considering economic diversification in case of a deep drop in oil prices, which threatened to reduce the population’s standard of living. The Emirates identified tourism and finance as the most promising sectors and also focused on creating free economic zones. This helped attract investment and accelerate the development of local industries.

The goal was achieved: today, the UAE’s economy relies not only on oil revenues and is more resilient to fluctuations in commodity prices. A significant share of revenues is allocated to a system of benefits for citizens: they have access to free public education, preferential housing programs, support for low‑income families, child benefits, and compensation for rising living costs. Although obtaining UAE citizenship without being born there is virtually impossible, the Emirates have created a favorable environment for foreign businesses and professionals, which has further strengthened the economy. Thus, resource rents have enabled a fundamental transformation of the country’s economic model and significantly improved the well‑being of its residents.