The Gulf states are often overlooked as indirect beneficiaries of the Russia-Europe energy war. In what ways and to what extent have they leveraged it? Are these benefits sustainable?
Kuwait’s Sept. 29 parliamentary elections were supposed to bring change to the gridlock and governmental churn that had plagued the country in recent years. Kuwaitis initially appeared optimistic about the results, calling on the amir to appoint a strong government to work with the National Assembly. Questions remain, however, as to how well the government and the majority opposition parliament will be able to cooperate to implement the necessary reforms.
Under current, highly unpredictable market conditions, it is unreasonable for OPEC to make sharp movements to saturate the oil market or withdraw a significant number of barrels from it to meet divergent Western interests of lowering prices and punishing Russia.
Kuwait plays a larger role than is often assumed in America’s present and future military plans in the Middle East. But as Washington prioritizes the Indo-Pacific, it is critical that the security arrangement between the United States and Kuwait is thoughtfully reconfigured.
The announcements in mid-August that both the United Arab Emirates and Kuwait will be returning their ambassadors to Tehran after six years provided the latest indication that the diplomatic ice has started to break in the Gulf region.
After achieving respectable growth in 2021, the GCC member states now face the risk of monetary (over) tightening due to the need to follow the U.S Federal Reserve’s interest rate adjustments. These increases are not warranted, however, as the GCC economies currently face relatively moderate inflation. Instead, they should use the available fiscal space to mitigate the negative fallout of monetary tightening and make greater use of PPPs for future infrastructure development.
اقرأ تقرير MEI الأسبوعي الذي يتضمن تحليلات الخبراء للتطورات الإقليمية الرئيسية للأسبوع المقبل.
The Dorra Gas Field, located in shallow waters offshore in the northern Arabian Gulf, lies at the junction of competing territorial claims by Kuwait, Iran, and Saudi Arabia. With the growing gas demand in these countries, any production will be absorbed into the domestic network and the impact of production on the global gas and LNG market will be insignificant. However, the development of the field, if it occurs, may serve as a bellwether for regional relations.
Making the most of Iran’s reserves will require it to develop shared fields like Dorra/Arash, a gas field located offshore in the northern Gulf, where Iran must vie with competing claims from neighboring Kuwait and Saudi Arabia. In the past, Iran has often neglected its joint gas fields as a result of sanctions and focused instead on meeting its rapidly growing domestic needs through exploiting non-shared fields, but the country says this must change going forward.
Efforts to restore confidence between the U.S. and the Arab Gulf states took a first step with the recent formation of a new naval task force, known as the Combined Maritime Forces-153 (CMF-153), to improve maritime security in the Red Sea, Bab el-Mandeb, and the Gulf of Aden, including the hotspot of Yemen. Established in mid-April, the new task force intends to target weapons smuggling for Ansar Allah, as the Houthi militias are officially known, as well as human trafficking and the drug trade.
The global response to Russia’s invasion of Ukraine has focused new attention on friction between the United States and its traditional partners in the Gulf and reinforced skepticism regarding the United States’ status as the dominant international partner in the region. It’s time for both sides to identify a realistic way forward that sheds outdated notions of mutual obligation without becoming merely transactional.
The Arab Gulf states appear to be following a common template in responding to the global transition toward an energy system in which renewables play an increasingly central role. They are publicizing renewable energy targets, decarbonizing upstream and downstream oil and gas operations, commissioning renewable energy projects, and improving energy efficiency, among other strategies. A closer look, however, reveals differences in how they have deployed solar and wind power capacity.
As the countries of the Gulf Cooperation Council (GCC) work to transform from hydrocarbons-driven to data-driven economies, they will need to make significant and well-planned invest-ments in digital infrastructure, particularly when it comes to the complex issue of data govern-ance. They must take the lead in establishing regulatory and legal frameworks aligned with international standards in terms of data gathering, processing, and storing procedures. This report highlights the existing laws and regulations that govern data protection in the GCC while addressing their potential and limitations, along with the similarities and differences between the GCC’s legislative frameworks and the EU’s General Data Protection Regulation, and the impact of the GCC’s current data protection laws on individuals, the private sector, regulators, and governments.
While oil prices have rebounded before soaring since the depths of collapse in the spring of 2020 — with Brent crude prices skyrocketing from $19 per barrel in April 2020 to a three-year high of $86 per barrel in October 2021 — the prospects for a sustained high oil price for Gulf producers is unlikely.
Integrated air and missile defense will make America’s partners in the Persian Gulf safer and bolster America’s policy against Iran. It’s past time to make IAMD a priority.