Can Muslim Countries Escape the Resource Curse?
By Zunab Zehra
Many resource-rich Muslim-majority countries continue to face challenges such as unemployment, weak institutions, and economic dependence despite significant natural wealth.
When easy money flows from oil or gas exports, governments can become dependent on those revenues instead of building diverse economies. Industries such as manufacturing and technology often receive less attention.
Lessons from Dependence
Nigeria illustrates this contradiction. Despite being Africa’s largest oil producer for many years, millions of Nigerians still live in poverty. According to World Bank estimates, around 40 percent of the country’s population lives below the national poverty line. The country has earned enormous sums from oil exports, yet many citizens have seen little improvement in their daily lives.
Algeria remains heavily dependent on hydrocarbons, which account for roughly 90 percent of export earnings. According to the World Bank, this dependence leaves the country’s economy highly exposed to fluctuations in global energy prices. When energy prices are high, government revenues rise. When prices fall, economic pressures quickly emerge. It is a reminder that relying on a single commodity can leave even wealthy states vulnerable.
Why the Gulf Is Looking Beyond Oil
Ironically, some of the countries most associated with oil are now trying hardest to move beyond it.
Saudi Arabia’s Vision 2030 programme is perhaps the most ambitious example. The kingdom is investing heavily in tourism, renewable energy, entertainment, logistics, and technology.
Policymakers know oil cannot remain the foundation of the economy forever.
The United Arab Emirates has already travelled further down this road. According to the UAE Ministry of Economy, sectors such as finance, aviation, trade, and tourism now play a major role in economic growth. Dubai’s economy now extends far beyond energy exports.
The Real Resource Is Good Governance
Countries that manage resource wealth successfully typically invest revenues wisely and plan for the long term. In countries where institutions are weak, resource revenues can become concentrated in the hands of political elites, creating opportunities for corruption and mismanagement.
Research from the International Monetary Fund repeatedly points to governance quality as one of the key factors separating success stories from failures.
Perhaps the most famous example is Norway. Rather than spending every dollar generated by oil exports, Norway established a sovereign wealth fund that invests profits for future generations. According to Norges Bank Investment Management, the fund is worth more than $1.7 trillion, making it the largest of its kind in the world.
Resources may create wealth, but institutions determine whether that wealth benefits society.
An Islamic Perspective
In Islamic thought, wealth is not merely a privilege; it is a responsibility. Resources are viewed as a trust, or amanah, that should benefit society as a whole. The Qur’an repeatedly emphasizes justice, accountability, and the fair use of resources.
This contrasts with systems where resource wealth benefits only a small group. Investments in education, healthcare, infrastructure, and future generations are not only sound economic policies but also reflect core Islamic values.
Seen through this lens, escaping the resource curse is not just about economics. It is about stewardship.
Beyond Oil: The Next Chapter
The question facing many Muslim-majority countries is not whether they possess enough resources. Most already do. The more important question is whether they can transform temporary resource wealth into lasting economic strength.
Oil wells eventually run dry. Commodity prices rise and fall. Global energy markets change. Human capital, strong institutions, and diversified economies, however, tend to endure.
The countries that understand this reality may discover that their greatest resource was never oil or gas at all. It was the ability to invest wisely while the opportunity still existed.