the GCC as a response to the decrease in oil prices beginning in 2014. VAT is expected to be effective in the GCC in January 2018, however some countries may implement this tax later into the year. The UAE, KSA and Bahrain have now implemented VAT leaving three GCC countries (Oman, Kuwait, and Qatar) to still implement VAT. Implications Though each member of the GCC will establish a separate national implementation of VAT, the implications of VAT on the economy are similar. First, the requirements for businesses operating under VAT appear universal across the region: all businesses that exceed the VAT threshold must register, filing periodic VAT returns with tax officials, and record keeping of all business transactions. Similar considerations are to be taken by businesses and governmental bodies. VAT may not apply to all financial services (such as services involving Islamic banking or insurance). Considerations of VAT on the oil and gas industry must also be made. The retail sector may also be adversely affected; retailers must be aware of the correct way to classify sales and implement retail loyalty schemes. History Around 1800 Textile production was the most-important industry, complemented by food-processing, furniture and some specialized industries. Industrial production was mostly concentrated in the cities. With exception of Istanbul, the cities themselves were all situated next to a substantial area of cultivatable land with soil quality. Most industries, with fixed price and guild systems, were not conducive to innovation, even if a certain quality of craftsmanship was preserved. Another important urban function was to organize caravan trade. Early nineteenth century During the early nineteenth century, the situation in the Middle East changed dramatically because of three development paths: mild reforms and problematic openness in the Ottoman imperial core, forced development in Egypt and direct colonization in central Asia and Algeria. When comparing living standards, the Middle East did better than the Western industrialized countries in the mid-19th century. With the income levels and the onset of huge structural changes around 1900, an economic setback determines consumption behaviour and led to permanent changes in the nutritional status of the Middle Eastern populations. Therefore, the Western industrialized countries overtook the Middle Eastern living standards around 1900. 20th century Following a period of deindustrialization, political movements in the Middle East demanded a political renaissance and leaders saw the need for reindustrialization. See also Middle East economic integration Start-up Nation Economy of