Economic diversification refers to the process of expanding a country's or region's economy by developing a variety of industries and sectors. This strategy aims to reduce dependence on a single source of income, such as oil or agriculture, by promoting growth in other areas like technology, manufacturing, or tourism. By diversifying, economies can become more resilient to market fluctuations and global changes. Countries often pursue economic diversification to create jobs, stimulate innovation, and enhance overall economic stability. For example, nations like United Arab Emirates have successfully diversified their economies beyond oil by investing in sectors such as finance, real estate, and renewable energy. This approach helps ensure sustainable growth and reduces vulnerability to economic downturns.