Migrant construction laborers working in Dubai line up to board a bus which will take them back to their labour camp for the night. (Brent Stirton/Getty Images)
Executive Summary
The presence of large migrant communities has made the Gulf Cooperation Council (GCC) countries a lightning rod for an immigration debate. Like many OECD (Organisation for Economic Co-operation and Development) countries, the GCC countries are a popular destination for people seeking a higher standard of living for themselves and their families back home. However, the unique cultural and economic circumstances of the GCC countries lead to an internationally distinct set of outcomes for the host countries, the migrant workers, and the source countries.
On October 21, AGSI will host a discussion on the strategic economic significance of sovereign wealth funds in the Middle East-Asia investment corridor.
Israeli and Iranian attacks on targets in Qatar are worrying developments for the small Gulf state, but they are unlikely to disrupt an expected acceleration of economic growth over the short and medium terms.
While hydrocarbons will likely continue to dominate Kuwait-China economic ties, the two countries are increasing cooperation in sectors such as construction, logistics, and renewable energy, suggesting a growing appetite to broaden ties beyond oil.
Bahrain’s free trade agreement with the United States might give Manama a golden opportunity to attract foreign capital and produce a diverse range of merchandise exports.
Bahrain’s post-coronavirus economic strategy positions the government as a venture capitalist, providing capital for strategic investments, but at the same time offering regulatory support for the private sector.
Consumer prices have risen much less in the Gulf states than in the United Kingdom and United States largely because of the idiosyncrasies of GCC economies.
Even though an increase in the VAT seems the most viable option, higher levels of public buy-in could be secured through greater transparency in fiscal policy.
