World Bank praises UAE diversification - Gulf News

Non-oil exports were as low as 5.7 per cent of GDP in 1975, but have subsequently risen to about 37 per cent.

"Although there is ample room for improvement to raise the ratio in the UAE, this is relatively high compared to other Mena oil exporters, such as Algeria, Kuwait and Saudi Arabia," the report said.

"The UAE has pursued diversification in a number of areas, including aviation, port facilities, tourism, finance and telecommunications," it added.

"The Emirates have also increased integration through the pursuit of various trade and investment agreements within the Gulf region and with the rest of the world.

"In addition, they have established free trade zones, where foreign companies are allowed 100 per cent ownership.

I thought trade gains came from specialization according to comparative advantage, not through diversification. Is the World Bank confused? Or is it using confusing language? What is it praising, really? Is diversification what it is praising? And if it is, what's good about domestic product diversification that cannot be better achieved with a diverified portfolio of foreign investments?