Situating the Gulf States in the Global Economic Redrawing: GCC-BICs Relations
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.
KeywordsSaudi Arabia Trade Data Gulf Cooperation Council Global Order Foreign Labor
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