By Soukaina Rachidi

According to recent forecasts from the International Monetary Fund, the GDP of the six oil-reliant members of the Gulf Cooperation Council (GCC), Qatar, Oman, Kuwait, U.A.E, Bahrain and Saudi Arabia are projected to slow to 2.7% in 2016, down from 3.2% in 2015.  The main cause for this slowed growth is the historically low oil prices, which have weakened the fiscal balances of Gulf’ oil-exporters and resulted in unprecedented budget deficits for the first time in 20 years.

With increased oil yields from Russia, Africa, the Caspian Sea and the re-introduction of Iran into the global oil market, the GCC has had to deal with an increasing number of competitors. However, this increase isn’t the only challenge facing the GCC. The growing interest in renewable energy has also resulted in a steady decline in the demand for oil. However, while oil prices are unlikely to rise anytime soon, The GCC’s substantial sovereign wealth funds and foreign reserves are sure to protect it from any economic shocks in the foreseeable future.

Marie Owens Thomsen, Chief Economist at Indosuez Wealth Management, believes that low oil prices are presenting the GCC with a unique opportunity to introduce structural reforms and fiscal policies that will diversify its economies, increase investment and create more sustainable business opportunities for the region. Here are three new emerging industries that investors should consider in the GCC.

1. Halal Lifestyle Industry

A recent report published by the Economist Intelligence Unit predicted that the Gulf’s Halal food imports are projected to increase to 53.1 billion dollars by 2020 and by the end of the decade, the UAE’s annual Halal food imports alone are expected to reach an estimated 8.4 billion dollars. While the GCC has lagged in developing the Islamic economy in the past, these projections are changing the landscape of the region’s economy. The UAE is currently leading the charge, as it primes Dubai to become the future hub of Islamic banking, Halal food and lifestyle industries.

By leading the world in the standardization of halal accreditation and certification, Dubai hopes to attract new industry-specific manufacturing and services to the region. In addition to that, the UAE is also targeting the halal tourism market, which represents 11.6% of global tourism expenditure and is projected to be worth 238 billion dollars by 2019. With the rapidly growing global Muslim population and an emerging middle class, the GCC has the potential to generate great revenue serving the needs of this growing market segment.

2. Aviation Industry

The lack of other efficient modes of transportation in the GCC has played a big role in fueling the demand for better airlines, airports and aviation services in the region. According to the International Air Transport Association (IATA), the Middle East is anticipated to be one of the fastest growing regions in the world in terms of passenger traffic until at least 2034, with an annual growth rate of 4.6% on average. Over the past couple of years, the GCC has implemented various progressive aviation policies to increase transparency and promote competitiveness in the sector to encourage further growth.

The fact that roughly 80% of the world's population lives within an eight-hour flight of the GCC has also presented a great advantage to the region’s aviation sector. While airlines like Qatar Airways, Etihad and Emirates lead the market in long-haul flights, smaller low-cost carriers like FlyDubai and Air Arabia are filling the gap in the short-haul market. The GCC’s clear geographic advantage, the rise in tourism, growing populations and the ready access to capital, fuel and space make the Gulf’s aviation industry a strong investment opportunity for investors seeking to capitalize on the privatization of airports and existing gaps in the domestic travel market.

3. Entrepreneurship Industry

While political turmoil and lower oil prices have adversely impacted many sectors in the region, the GCC’s start-up ecosystem continues to flourish. In fact, in 2015, the Dubai Department of Economic Development issued an estimated 22,025 trade licenses, which is almost double the number issued in 2009. Despite the additional regulatory challenges that entrepreneurs face in the GCC, such as restrictive visa regulations or the lack of bankruptcy laws, the region still remains an attractive hub for startups founders.  Dubai Department of Economic Development has risen steadily during the past eight years, after a dip in 2009, when the global financial crisis hit the region. Last year, Dubai DED issued 22,025 trade licences, up from 11,743 in 2009.business category.The number of trade licences issued by Dubai Department of Economic Development has risen steadily during the past eight years, after a dip in 2009, when the global financial crisis hit the region. Last year, Dubai DED issued 22,025 trade licences, up from 11,743 in 2009.

According to Dany Farha, the Chief Executive of Dubai-based Beco ­Capital, the GCC’s tech startup sector has grown ten-fold in the past four years. The growth of the regional venture capital ecosystem and the falling demand for office space and the willingness of suppliers to negotiate prices has created the “perfect storm” for small businesses to grow and reduce overhead costs. Furthermore, the privatization of various public services across the GCC, has created a unique opportunity for investors to diversify their portfolios and help entrepreneurs provide more efficient and cost-effective services for GCC governments’ and consumers.