Oman’s precarious reliance on energy exports to China and insufficient Chinese investment in non-oil segments of the Omani economy leave the sultanate in a weak position to address urgent economic challenges.
The dash for gas will have ramifications for economic and energy models of the region’s petrostates for years to come as environmental pressures mount within the region and beyond.
The double whammy of low oil prices and the coronavirus-induced economic slowdown in the Gulf Arab states has forced governments to deal with a changing labor market.
A protracted slump in upstream oil and gas investment may result in the undesirable return of price volatility and market imbalance.
The complementary nature of China’s Belt and Road Initiative and Gulf “vision” development programs has established another pillar of China-Gulf cooperation.
The Iran-China agreement appears as a framework for cooperation. Its realization depends on external factors over which Iran has no influence.
Saudi Arabia has adopted strict austerity measures to combat the dual effect of falling oil prices and the coronavirus crisis. Unlike previous measures that were lifted when oil prices recovered, a July 1 VAT increase (from 5% to 15%) is more likely to stay in place, which could present challenges to low-income families, businesses, and plans to revive domestic tourism.
Advancing Oman’s technology initiatives can help the government address economic challenges that have assumed a new degree of urgency following the coronavirus outbreak and oil price collapse.
For those seeking pathways to stable economic growth in the Middle East, developments in Iran may serve as a model – Iran represents the first major oil producer in the Middle East to transition to overall dependence on non-oil exports.
The global economic slowdown presents Chinese entities with a cost-effective opportunity to expand investments in strategic sectors across the Gulf region.
Learn MoreThrough 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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