Markets Serving States: The Institutional Bases of Financial Governance in the Gulf Cooperation Council States
Institutionalization in the Gulf Cooperation Council (GCC) states is proceeding within the financial sector in many ways as a result of economic growth, rather than as a precursor or foundation of economic growth. This paper gives an overview of the architecture of financial governance in the GCC states, situating financial governance in the context of...
Institutionalization in the Gulf Cooperation Council (GCC) states is proceeding within the financial sector in many ways as a result of economic growth, rather than as a precursor or foundation of economic growth. This paper gives an overview of the architecture of financial governance in the GCC states, situating financial governance in the context of domestic state-building, global capital flows and energy markets. The paper argues that demand for new financial services often originates in the global business and finance communities, while domestic financial institutions dominated by state and ruling family interests may prefer less diversity and range (and requisite regulation). When GCC states do regulate markets, they are able to move quickly, which often privileges state priorities over market depth and diversification. As Gulf states create new economic institutions to govern their markets, they are also creating a framework that enables broader political goals of financial and economic statecraft.
The author acknowledges financial support from the Arab University Collaboration grant from the Emirates Foundation (via LSE), as well as research assistance from Mai Mahmoud. Preliminary portions of this paper were published by the Georgetown Journal of International Affairs, vol. 16.2
The Saudi government projects that the budget deficit will narrow during 2026-28, but this will depend on a rebound in oil prices and tight control of spending.
U.S. authorizations for exporting advanced chips to the leading Gulf technology firms is sure to please regional authorities, who will push to broaden and accelerate technology collaboration with the United States.
AGSI explains what Israel’s sudden and massive attack on Iran is likely to mean for Gulf Arab states, Iran, the United States, and global and regional economies.
The conflict in Yemen has exacted a disastrous toll on the country. This paper considers the outside forces in the conflict, seeking to elucidate who they are, what the nature is of their involvement, and what their converging and conflicting interests mean for reconstruction.
This post is part of an AGSIW series on Saudi Vision 2030, a sweeping set of programs and reforms adopted by the Saudi government to be implemented by 2030. Saudi Arabia did one thing right this week. It is seeing some positive news in the return on investment in its outwardly placed capital in new technology....
Institutionalization in the Gulf Cooperation Council (GCC) states is proceeding within the financial sector in many ways as a result of economic growth, rather than as a precursor or foundation of economic growth. This paper gives an overview of the architecture of financial governance in the GCC states, situating financial governance in the context of domestic state-building, global capital flows and energy markets. The paper argues that demand for new financial services often originates in the global business and finance communities, while domestic financial institutions dominated by state and ruling family interests may prefer less diversity and range (and requisite regulation). When GCC states do regulate markets, they are able to move quickly, which often privileges state priorities over market depth and diversification. As Gulf states create new economic institutions to govern their markets, they are also creating a framework that enables broader political goals of financial and economic statecraft.
Oct 5, 2015
Markets Serving States: The Institutional Bases of Financial Governance in the Gulf Cooperation Council States
Institutionalization in the Gulf Cooperation Council (GCC) states is proceeding within the financial sector in many ways as a result of economic growth, rather than as a precursor or foundation of economic growth. This paper gives an overview of the architecture of financial governance in the GCC states, situating financial governance in the context of...
1 min read