Advertisement

Situating the Gulf States in the Global Economic Redrawing: GCC-BICs Relations

  • Crystal A. Ennis
Part of the International Political Economy Series book series (IPES)

Abstract

The steady decline of oil prices in the last quarter of 2014 magnifies concerns over the fiscal health of Gulf States.1 Perpetual failure to diversify significantly has further exposed Gulf economies to risk. Despite the experiences of oil decline in the past, especially the experience of the 1980s–1990s, the region has circled back to similar questions on how to respond to economic imbalances derived from sustained dependence on natural resource export and labor import. These questions have extra resonance in countries such as Bahrain and Oman, with more limited hydrocarbon revenues and more acute socio-economic pressures. Yet, the global economy of 2015 has also changed significantly from the last sustained oil crisis. Today, emerging economies such as the BICs (Brazil, India, China), and especially Asian economies, are playing a more significant role. Compared with the mid-2000s, hydrocarbon trade with the West is declining relative to trade with Asia and, overall, the Gulf is less central to energy markets.

Keywords

Saudi Arabia Trade Data Gulf Cooperation Council Global Order Foreign Labor 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abdelal, R., 2009. “Sovereign Wealth in Abu Dhabi.” Geopolitics, 14(2), pp. 317–327.CrossRefGoogle Scholar
  2. Acharya, A., 2014. The End of American World Order. Cambridge: Polity Press.Google Scholar
  3. Ahmad, T., 2013. “Slowdown in Emerging Markets: Implications for GCC Trade and Investments.” The Emirates Center for Strategic Studies and Research, August 11. Available at http://ecssr.com/ECSSR/print/ft.jsp?lang=en&ftId=/FeatureTopic/Talmiz_Ahmad/FeatureTopic_1710.xml (Accessed February 22, 2014).
  4. Al-Sharhan, B., 2014. “GCC, China to Sign 14–17 Action Plan, Resume FTA Negotiations — Amb. Al-Muzayan.” Kuwait News Agency, January 16, Kuwait. Available at http://www.bilaterals.org/?gcc-china-to-sign-14-17-action (Accessed January 17, 2014).
  5. Al Shayji, A. K., 2014. “The GCC-U.S. Relationship: A GCC Perspective.” Middle East Policy, 21(3), pp. 60–70.CrossRefGoogle Scholar
  6. Al-Tamimi, N., 2013. “Asia-GCC Relations: Growing Interdependence.” ISPI Analysis 179, pp. 1–12. Available at http://www.ispionline.it/sites/default/files/pubblicazioni/analysis_179_2013.pdf (Accessed February 22, 2014).Google Scholar
  7. Alterman, J. B., 2013. “China’s Balancing Act in the Gulf.” Gulf Analysis Paper. Washington: Center for Strategic and International Studies. Available at http://csis.org/files/publication/130821_Alterman_ChinaGulf_Web.pdf (Accessed February 22, 2014).Google Scholar
  8. Amorim, C., 2011a. “Brazil and the Middle East: Reflections on Lula’s South-South Cooperation.” Cairo Review of Global Affairs, 2, pp. 48–63.Google Scholar
  9. Amorim, C, 2011b. “Let Us In.” Foreign Policy, March 14 Available at http://www.foreignpolicy.com/articles/2011/03/14/let_us_in (Accessed February 22, 2014).
  10. Bloomburg, 2010. “China Overtakes Japan as World’s Second-Biggest Economy.” August 16. Available at http://www.bloomberg.com/news/2010-08-16/china-economy-passes-japan-s-in-second-quarter-capping-three-decade-rise. html (Accessed March 22, 2014).
  11. Brahmand, 2014. “India-Saudi Arabia to Finalise Defence Assistance Pact.” Brahmand: Defence and Aerospace News, February 26 New Delhi. Available at http://www.brahmand.com/news/India-Saudi-Arabia-to-finalise-defence-assistance-pact/11924/1/13.html (Accessed February 27, 2014).Google Scholar
  12. BRICS, 2009, “Joint Statement of the BRIC Countries Leaders.” Yekaterninburg, Russia. Available at http://www.brics5.co.za/about-brics/summit-declaration/first-summit/ (Accessed February 22, 2014).Google Scholar
  13. Buckley, M., 2012. “Locating Neoliberalism in Dubai: Migrant Workers and Class Struggle in the Autocratic City.” Antipode, 45(2), pp. 256–274.CrossRefGoogle Scholar
  14. Bundhun, R., 2014. “DP World Kick-Starts $200 Million Mumbai Container Terminal.” March 5. Available at http://www.thenational.ae/business/industry-insights/shipping/dp-world-kick-starts-200-million-mumbai-container-terminal (Accessed March 24, 2014).
  15. Calabrese, J., 1992. “Peaceful or Dangerous Collaborators? China’s Relations with the Gulf Countries.” Pacific Affairs, 65(4), pp. 471–485.CrossRefGoogle Scholar
  16. Casarões, G., 2013. “So Far But Yet So Close: Brazil and the Middle East.” Sao Paulo. Unpublished.Google Scholar
  17. China Securities Regulatory Commission, 2013. “List of QFIIs (Until September 2013).” Available at http://www.szse.cn/main/en/QFII/include/QFIIS.html (Accessed June 5, 2015).
  18. Chin, G. and Thakur, R., 2010. “Will China Change the Rules of Global Order?” Washington Quarterly, 33(4), pp. 119–138.CrossRefGoogle Scholar
  19. Coates Ulrichsen, K., 2011. “Repositioning the GCC States in the Changing Global Order.” Journal of Arabian Studies, 1(2), pp. 231–247.CrossRefGoogle Scholar
  20. Cohen, B. J., 2008. International Political Economy: An Intellectual History. New Jersey: Princeton University Press.Google Scholar
  21. Cox, R. W., 1981. “Social Forces, States and World Orders: Beyond International Relations Theory.” Millennium — Journal of International Studies, 10(2), pp. 126–155.CrossRefGoogle Scholar
  22. Dahiya, R. (ed.), 2014. Developments in the Gulf Region: Prospects and Challenges for India in the Next Two Decades. New Delhi: Institute for Defence Studies & Analysis and Pentagon Press.Google Scholar
  23. Dipaola, A. and Shenk, M., 2015. “Saudi Arabia Deepens Asia Oil Discount to Record Low.” Bloomberg Business, February 6.Google Scholar
  24. Economist Intelligence Unit, 2011. GCC Trade and Investment Flows: The Emerging-Market Surge. London: Economist. Available at http://www.economistinsights.com/sites/default/files/downloads/AVIVA%20-%20GCC%20Trade%20and%20Investment%20Web%2022%20MARCH%202011-1.pdf (Accessed March 5, 2014).
  25. Ennis, C. A., 2013. Rentier 2.0: Entrepreneurship Promotion and the (Re)Imagination of Political Economy in the Gulf Cooperation Council Countries. Dissertation submitted to the University of Waterloo.Google Scholar
  26. Ennis, C. A., 2015. “Between Trend and Necessity: Top-Down Entrepreneurship Promotion in Oman and Qatar.” Muslim World, 105(1), pp. 116–138.CrossRefGoogle Scholar
  27. Ennis, C. A. and Al-Jamali, R. Z., 2014. Elusive Employment: Development Planning and Labour Market Trends in Oman. London: Chatham House. Available at http://www.chathamhouse.org/sites/files/chathamhouse/field/field_document/20140916ElusiveEmploymentOmanEnnisJamali.pdf (Accessed October 1, 2014).Google Scholar
  28. Francis, A. K. and Narnia, B.-M., 2013. Laying the BRICS of a New Global Order: From Yekaterinburg 2009 to eThekwini 2013. Pretoria: Africa Institute of South Africa.Google Scholar
  29. Gause, G. G. I., 2011, December. “Saudi Arabia in the New Middle East.” Council on Foreign Relations. Available at http://www.cfr.org/saudi-arabia/saudi-arabia-new-middle-east/p26663 (Accessed October 20, 2012).
  30. GCC, 2012. GCC: A Statistical Glance (Volume III). Riyadh: Cooperation Council for the Arab States of the Gulf, Secretariat General. Available at http://sites.gcc-sg.org/DLibrary/index-eng.php?action=ShowOne&BID=569 (Accessed January 1, 2013).Google Scholar
  31. Gulf Investment Corporation, 2012. Annual Report and Accounts 2012. Kuwait. Available at http://www.gic.com.kw/site_media/uploads/annual-reports/GIC_AR_2012_Eng.pdf (Accessed February 22, 2014).
  32. Gulf Investment Corporation, 2013. “Retrenching the Welfare State: Kuwait Government Spending.” Gulf Investment Corporation Weekly Economic Digest, 3(147), October 31, pp. 1–2.Google Scholar
  33. Gulf Investment Corporation, 2013. “Reserves and Oil Production Dynamics.” Gulf Investment Corporation Weekly Economic Digest, 3(151), November 28.Google Scholar
  34. Hanieh, A., 2011. Capitalism and Class in the Gulf Arab States. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  35. Hanieh, A., 2013. Lineages of Revolt: Issues of Contemporary Capitalism in the Middle East. Chicago: Haymarket Books. Retrieved from 9781608463251.Google Scholar
  36. Hassad, 2009. “Hassad Food’s New Approach to Secure Food,” Hassad Food, September 8. Reprinted from The Economist. Available at http://www.hassad.com/NewsandMedia/IntheNews/HassadFoodsNewApproachtoSecureFoodSecurity/tabid/79/language/en-US/Default.aspx (Accessed February 22, 2014).
  37. Helleiner, E., 2009. “The Geopolitics of Sovereign Wealth Funds: An Introduction.” Geopolitics, 14(2), pp. 300–304.CrossRefGoogle Scholar
  38. Herz, M., Perez, L., de Almeida, A. R., Lage, V. C., Bittencourt, A., Aguiar, L. and Brito, M., 2011. “BRICS and the Revolts in the Middle East and North Africa,” BRICS Policy Center. Available at http://bricspolicycenter.org/homolog/uploads/trabalhos/5141/doc/1882705635.pdf (Accessed March 20, 2014).
  39. Hettne, B., 2005. “Beyond the ‘New’ Regionalism.” New Political Economy, 10(4), pp. 543–571.CrossRefGoogle Scholar
  40. Hvidt, M., 2007. “Public-Private Ties and Their Contribution to Development: The Case of Dubai.” Middle Eastern Studies, 43(4), p. 557.CrossRefGoogle Scholar
  41. Hvidt, M., 2009. “The Dubai Model: An Outline of Key Development-Process Elements in Dubai.” International Journal of Middle East Studies, 41(03), pp. 397–418.CrossRefGoogle Scholar
  42. Hvidt, M., 2013. “Economic Diversification in GCC Countries: Past Record and Future Trends.” The London School of Economics and Political Science, 27. Available at http://www.lse.ac.uk/middleEastCentre/kuwait/documents/economic-diversification-in-the-gcc-countries.pdf (Accessed February 7, 2015).
  43. International Monetary Fund, Direction of Trade Data (Accessed 4 April 2014).Google Scholar
  44. International Monetary Fund, 2012a. Economic Prospects and Policy Challenges for the GCC Countries. Riyadh: IMF. Available at https://www.imf.org/external/np/pp/eng/2012/100512.pdf (Accessed January 10, 2014)Google Scholar
  45. International Monetary Fund, 2012b. Regional Economic Outlook: Middle East and Central Asia. Washington: IMF. Available at http://www.imf.org/external/pubs/ft/reo/2012/mcd/eng/pdf/mreo1112.pdf (Accessed March 5, 2014).Google Scholar
  46. International Monetary Fund, 2015. World Economic Outlook Update. Washington: IMF. Available at https://www.imf.org/external/pubs/ft/weo/2015/update/01/pdf/0115.pdf (Accessed April 4, 2015).Google Scholar
  47. Kamrava, M., 2013. Qatar: Small State, Big Politics. Ithaca and London: Cornell University Press.Google Scholar
  48. Kanna, A., 2010. “Flexible Citizenship in Dubai: Neoliberal Subjectivity in the Emerging City-Corporation.” Cultural Anthropology, 25(1), pp. 100–129.CrossRefGoogle Scholar
  49. Katzenstein, P. J., 1977. “Introduction: Domestic and International Forces and Strategies of Foreign Economic Policy.” International Organization, 31(4), pp. 587–606.CrossRefGoogle Scholar
  50. Kennedy, L., 2015. “The Secret Business Plan That Could Spell the End for SMEs.” Bilaterals.org, February 12. Available at http://www.bilaterals.org/?the-secret-business-plan-that (Accessed February 13, 2015).
  51. Krane, J., 2014. “Guzzling in the Gulf: The Monarchies Face a Threat from Within.” Foreign Affairs, December 19. Available at http://www.foreignaffairs.com/articles/142692/jim-krane/guzzling-in-the-gulf (Accessed December 20, 2014).
  52. Lee, B., Kooroshy, J., Bailey, R. and Lahn, G., 2012. Resource Futures. London: Chatham House. Available at http://www.chathamhouse.org/sites/files/chathamhouse/public/Research/Energy%2C%20Environment%20and%20Development/1212r_resourcesfutures.pdf (Accessed March 3, 2015).Google Scholar
  53. Legrenzi, M. and Momani, B., 2011. Shifting Geo-Economic Power of the Gulf: Oil, Finance and Institutions. Farnham, UK: Ashgate.Google Scholar
  54. Luciani, G., 1990. The Arab State. Berkeley, CA: University of California Press.Google Scholar
  55. Maclean, W., 2013. “Rising Power India Sees No U.S.-Style Gulf Security Role.” December 7. Manama: Thomas Reuters. Available at http://www.reuters.com/article/201312/07/us-gulf-security-india-idUSBRE9B60DO20131207 (Accessed March 5, 2014).
  56. Marc Valeri, 2014. “Oman’s Mediatory Efforts in Regional Crises.” Norwegian Peacebuilding Resource Centre. Available at http://peacebuilding.no/var/ezflow_site/storage/original/application/c3f2474284d7aaeadeb5a8429ef64375.pdf (Accessed March 6, 2015).
  57. Marine Terminals, 2014. Available at http://webapps.dpworld.com/portal/page/portal/DP_WORLD_WEBSITE/Marine-Terminals/Overview (Accessed March 23, 2014).
  58. Matthiesen, T., 2014. “(No) Dialogue in Bahrain.” Middle East Research and Information Project (MERIP), February 13. Available at http://www.merip.org/mero/mero021314 (Accessed February 15, 2014).
  59. Ministry of Finance, 2014. Oman Is a Founding Member of Asia Infrastructure Development Bank, October 24. Available at http://www.sgrf.gov.om/news4.html (Accessed March 30, 2015).
  60. Momani, B., 2008. “Gulf Cooperation Council Oil Exporters and the Future of the Dollar.” New Political Economy, 13(3), p. 293.CrossRefGoogle Scholar
  61. Momani, B. and Ennis, C. A., 2012. “Between Caution and Controversy: Lessons from the Gulf Arab States as (Re-)Emerging Donors.” Cambridge Review of International Affairs, 25(4), pp. 605–627.CrossRefGoogle Scholar
  62. National Centre for Statistics and Information (NCSI), (previously Ministry of National Economy), 2007. Statistical Year Book 2007. Available at http://www.ncsi.gov.om/ (Accessed January 15, 2015).
  63. National Centre for Statistics and Information (NCSI), (previously Ministry of National Economy), 2010. Monthly Statistical Bulletin, December 2010. Available at http://www.ncsi.gov.om/ (Accessed January15, 2015).
  64. National Centre for Statistics and Information (NCSI), 2014. Monthly Statistical Bulletin, October 2014. Available at http://www.ncsi.gov.om/ (Accessed January 15, 2015).
  65. OECD, 2011. Globalisation, Comparative Advantage and the Changing Dynamics of Trade. Paris: OECD. Available at http://www.oecd-ilibrary.org/trade/globalisation-comparative-advantage-and-the-changing-dynamics-of-trade_9789264113084-en (Accessed March 5, 2014).Google Scholar
  66. Ong, A., 2007. “Neoliberalism as a Mobile Technology.” Transactions of the Institute of British Geographers, 32(1), pp. 3–8.CrossRefGoogle Scholar
  67. Pradhan, P. K., 2010. “India and Gulf Cooperation Council: Time to Look Beyond Business.” Strategic Analysis, 34(3), pp. 409–419.CrossRefGoogle Scholar
  68. PricewaterhouseCoopers, 2013. World in 2050 — The BRICs and Beyond: Prospects, Challenges, Opportunities. Available at https://www.pwc.com/en_GX/gx/world-2050/assets/pwc-world-in-2050-report-january-2013.pdf (Accessed March 11, 2014).
  69. Raghavendran, S., 2012, June 21. “Trade Patterns of the Future: A Look at Emerging Markets’ Potential Impact on Supply Chains.” CFO Journal from the Wall Street Journal. New York. Available at http://deloitte.wsj.com/cfo2012/06/21/trade-patterns-of-the-future-a-look-at-emerging-markets-potential-impact-on-supply-chains.tab/print/ (Accessed March 10, 2014).Google Scholar
  70. Reuters, 2015. Gulf Producers Grab Market Share in Asia in Oil Price War. Arabian Business, February 7. Available at http://www.arabianbusiness.com/gulf-producers-grab-market-share-in-asia-in-oil-price-war-581345.html (Accessed February 7, 2015).
  71. SABIC. (n.d.). http://www.sabic.com/me/en/ (Accessed February 15, 2015).
  72. Scholte, J. A., 1997. “Global Capitalism and the State.” International Affairs, 73(3), pp. 427–452.CrossRefGoogle Scholar
  73. Schomberg, W., 2015. “UK to Join China-Backed Asian Development Bank.” Reuters, March 13 London. Available at http://uk.reuters.com/article/2015/03/13/uk-britain-asia-bank-idUKKBN0M82S720150313 (Accessed March 14, 2015).Google Scholar
  74. Seznec, J.-F., 2008. “The Gulf Sovereign Wealth Funds: Myths and Reality.” Middle East Policy, 15(2), pp. 97–110.CrossRefGoogle Scholar
  75. Seznec, J.-F. and Kirk, M., 2010. Industrialization in the Gulf: A Socioeconomic Revolution. New York: Routledge.Google Scholar
  76. Sovereign Wealth Fund Institute Data (Accessed February 1, 2015).Google Scholar
  77. Strange, G. (2011). “China’s Post-Listian Rise: Beyond Radical Globalisation Theory and the Political Economy of Neoliberal Hegemony.” New Political Economy, 16(5), pp. 539–559.CrossRefGoogle Scholar
  78. United Nations Commodity Trade Data (Accessed February 5, 2015).Google Scholar
  79. Vale, 2014. “Vale in the World.” www.vale.com/canada/EN/aboutvale/across-world/Pages/default.aspx (Accessed March 20, 2014).
  80. World Bank, 2014. World Bank Open Data, Available at http://data.worldbank.org/ (Accessed March 5, 2014)
  81. World Bank, 2010. Economic Integration in the GCC. Washington. Available at http://siteresources.worldbank.org/INTMENA/Resources/GCCStudyweb.pdf (Accessed March 5, 2014).Google Scholar
  82. World Trade Organization, 2014. Members and Observers. Available at http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm (Accessed October 2, 2014).
  83. Wu, F., 2008. “China’s Great Transformation: Neoliberalization as Establishing A Market Society.” Geoforum, 39(3), pp. 1093–1096.CrossRefGoogle Scholar
  84. Yousef, D. K., 2012, February 16. “Brazil Keen to Reach Mercosur Free Trade Agreement with GCC.” Available at http://gulfnews.com/business/investment/brazil-keen-to-reach-mercosur-free-trade-agreement-with-gcc-1.981555 (Accessed March 24, 2014).
  85. Zambelis, C., 2012, October 19. “China and Qatar Forge a New Era of Relations Around High Finance.” Jamestown China Brief, XII(20), pp. 5–8.Google Scholar

Copyright information

© Crystal A. Ennis 2016

Authors and Affiliations

  • Crystal A. Ennis

There are no affiliations available

Personalised recommendations