nicole johnson of al jazeera english shows us why. >> reporter: living it up in the gulf., an 18-year-old on holiday. here the country's enormous oil and gas wealth means the state pays for his university education, gives him a free plot of land, builds his house, and pays for his electricity and water bills. >> translator: many people took advantage of the benefits. they realized they're privileged. however, others did not. those people squandered their money on luxury. (bryrle >> reporter: when you're broughg into a country rich in oil and gas, the tables have created a classic welfare system. while it soulessing, analysts say it can also be a curse and that's because the countries are literally drowning in petro dolrs. >> it is good to have a welfare state, good to have the net underneath that people don't fall through, fall down, within the competition in the country. but when it goes too far, it kills incentives and that's problem is being faced now. the gulf countries it sounds like economic jargon, it means they rely almost entirely on income from oil and gas and th