The Saudi, Bahraini, and Emirati efforts to isolate Qatar logistically will require a restructuring of the country’s plans for SEZs.
On the heels of the G-20 summit in Hamburg, Turkish President Recep Tayyip Erdogan announced plans to visit Kuwait, Saudi Arabia, and Qatar.
On the surface, Yemen’s reaction to the Gulf crisis, in which Saudi Arabia, the United Arab Emirates, and Bahrain, along with Egypt, have broken diplomatic ties with Qatar, was rather straightforward: On June 5, Yemen’s internationally recognized government cut ties with Qatar, accusing the country of backing the Houthis and Yemen-based extremist groups.
The diplomatic and economic boycott imposed on Qatar – the world’s largest exporter of LNG – has created only marginal logistical disruptions for international LNG markets and has had no impact on oil supplies.
Challenges have now emerged from Qatar’s three closest neighbors that are testing its two-pronged security modus operandi.
On June 20, a U.S. State Department spokesperson announced what seemed to be a crucial shift in the U.S. approach to the confrontation between a group of Washington’s core Arab allies – Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt – and another major partner, Qatar.
The isolation of Qatar is but one example of how the politics of the Gulf Arab states are getting in the way of economic diversification and transformation.
As tensions across the Gulf Arab states escalate, measures taken against Qatar are impacting trade, business, and food security.
Historical context is essential to understanding the escalating rift among the GCC states. Saudi Arabia, the UAE, and Bahrain cut diplomatic ties with Qatar in 2014.
Three members of the GCC – Saudi Arabia, the UAE, and Bahrain cut off ties to Qatar in a bold, high-stakes move to alter its behavior.
The Saudi, Bahraini and Emirati efforts to isolate Qatar from its GCC partners highlights structural weaknesses in many of the Gulf states, not just Qatar.
Global demand forecasts by leading agencies have diverged sharply, reflecting a deepening sense of uncertainty about the future path of the global economy.
Learn MoreTrump’s trip to Saudi Arabia has the potential not only to reinforce the deep-rooted U.S.-Saudi alliance but also to expose the fault lines that could undermine future cooperation.
Trump’s tariff agenda may complicate Gulf governments’ capabilities to advance key policy initiatives and strategic economic partnerships, including Gulf investments in the United States.
Successful public-private partnerships could help Gulf Arab states improve infrastructure without further burdening state resources.
Through its careful examination of the forces shaping the evolution of Gulf societies and the new generation of emerging leaders, AGSIW facilitates a richer understanding of the role the countries in this key geostrategic region can be expected to play in the 21st century.
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