How to interpret the crisis between Qatar and Saudi Arabia’s allies
The crisis between Qatar and much of the new “Sunni” NATO – as some US media already call it today – consists in a formal series of 13 requests that Saudi Arabia, Egypt, Yemen, the Emirates, Bahrain, and even Mauritius, have made – as an ultimatum – to Qatar:
1) to break off any diplomatic and economic relations with Iran; 2) to immediately close the Turkish military base near Doha and, anyway, put an end to military cooperation between Qatar and Turkey; 3) to immediately close Al Jazeera, an old TV created on the ruins of the BBC broadcasting in Arabic and later de facto monopolized by the Muslim Brotherhood; 4) to make the members of the Qatari Royal House no longer fund networks such as Arabi21, RASSD, Araby al-Jadid and Middle East Eye. “Araby al Jadeed” is a brand-new all-news network created in March 2014 and organized by Azmi Bashara, a former member of the Israeli Parliament, broadcasting from London, Beirut and Doha, with 150 employees, while the above stated Middle East Eye is currently led by David Hearst, formerly foreign editor-in-chief of the London Guardian.
The network Middle East Eye has been blocked by the Saudi authorities and by the other Emirates.
The other requests are the following: 5) Saudi Arabia has asked Qatar to stop funding groups or individuals designated as terrorists by Saudi Arabia, the United Arab Emirates (UAEs), Bahrain and Egypt, as well as providing data and information.
Well done. Some terrorists designated as such by Saudi Arabia are defined in the same way also by the West. It is the case of Hajjaj al Azmi, a Kuwaiti citizen who often lives in Doha. In the list of the 13 requests also the “Benghazi Defense Brigades” are mentioned, namely a militia created in June 2016 to oppose the forces of Khalifa Haftar’s Operation Dignity.
The Benghazi Defense Brigades cooperated with the ISIS “Caliphate” in its operations at Suq al-Hout and in Sirte.
The Saudi list includes Abdullah Bin Khalid al-Thani, former Interior Minister of the Emirate, linked to the 9/11 jihadist operations.
However, let us be honest and face it. Prince Turki bin Faisal was the leader of Saudi intelligence services for 23 years since 1979 until ten days before the 9/11 attack. Is it by mere coincidence?
According to well-known data, Nawaf bin al-Hamzi and Khalid al-Mindar, who both arrived in the United States for the 9/11 attack, were managed by the Saudi intelligence services.
Al-Bayoumi, selected by the FBI exactly as a Saudi agent, had huge funds in the United States granted by Saudi Arabia through the company Dallah Alco.
Al-Bayoumi was connected with Fahad al-Thumairy, Director of the Saudi Ministry for Islamic Affairs. However, let us not focus on the 29 pages taken from the US report on Saudi Arabia and the 9/11 attack.
This would get us very far and would shed light on many facts and events that are currently taking place, not only in the Middle East.
Strategically, the issue of the relationship between Saudi Arabia and Islamic terrorism has been long lasting: the jihad – which the West has foolishly favoured – has become the primary geopolitical agent throughout the Greater Middle East and also in the rest of the world.
This was solely Westerners’ fault since they had every chance to force Saudi Arabia, the Emirates, Iran, the Lebanon, Iraq and all the other Islamic regional players in the Middle East to be more reasonable and become somewhat milder as to the “sword jihad”.
Nevertheless, Quos Deus perdere vult, dementat.
As things stand now, without a change there is no solution for this situation. We will be confronted with the remote-controlled jihad and later we will ask those maneuvering it for money to be rescued from an economic crisis that is also caused by the crazy geopolitics of the whole West.
Currently Saudi Arabia invests approximately 20 billion US dollars for infrastructure in the United States, as well as six billions for 150 Black Hawk helicopters to be used in the its kingdom.
If all goes well, at the very quick pace recently imparted to reach economic diversification, Saudi Arabia will go ahead according to its program “Vision 2030” by selling, at first, Saudi Aramco on the market.
This is another important fact to understand today’s events.
Nevertheless the project “Vision 2030” also proposes measures which may still generate tension, such as the increase in tariffs, rates and taxes, although with a fall in the unemployment rate from 11.6% to 7%.
Furthermore Saudi Arabia envisages primary support for small and medium-sized enterprises (SMEs).
The Saudi public Fund devoted to SMEs, namely Musharakah, has already 4 billion Saudi riyals, equal to approximately 6 billion US dollars.
In short, Saudi Arabia wants to rapidly diversify its oil-dependent economy and grow up to becoming the 15th global economy in 2020.
Special Economic Zones will also be created and foreign direct investment (FDI) will rise from the current 3.8% to 5.7% .
According to Al Saud’s plans, the private sector is expected to reach 65% of GDP as against the current 45%.
If Saudi Arabia does not bring the whole Peninsula and the Sunni world up to speed according to this program, “Project 2020” is clearly doomed to failure. Another rational motivation for the anti-Qatar diktat.
Let us now move to request 6.
Against this background, Saudi Arabia asks Qatar to “break off relations with Hezbollah, al-Qaeda and the “Caliphate”.
Let us analyze data.
In 2008, the leader of Qatar, Emir al-Thani, held a meeting between all parties present on the Lebanese political scene, by showing clear support for the Shiite movement of the “Party of God” and its allies, especially for the many Iranian foundations operating in Beirut.
It is worth recalling that exactly in 2008, the Sunni Lebanese leader, Rafik Hariri (whose economic fortune had started in Saudi Arabia), was killed, probably by a joint operation of some Shiite countries.
Recently the Qatari Emir has also spoken of Hezbollah as a “resistance movement”, adding that it is “not wise” to oppose Iran.
Al-Thani has also said that such news were manipulated, but obviously this just exacerbates the situation.
The issue, however, is not only geopolitical, but also economic.
Qatar is a relatively small, but not irrelevant oil producer, with 620,000 barrels a day. However, it is the first natural gas supplier in the world and – according to 2016 data – it exports 77.2 million tons mainly to the East.
However, why is there no OPEC for natural gas, which would avoid the politicization of the search of market shares between producers?
Meanwhile, the United States is becoming the largest natural gas producer in the world, with a 2016 extraction level equal to 23%, while in 2001 the share of shale gas in North American extraction was a mere 1%.
Hence it is obvious to imagine how prices and market shares will change with this mass of liquid gas in Europe and Asia. It is also easy to imagine how the economies depending on natural gas in the Middle East would end up if the United States became more aggressive on the global liquid gas markets.
European markets’ net dependence on African and Middle East gas imports and rigid pricing of liquid gas on Asian markets, as well as the huge investment needed for extraction and transport infrastructure, are all factors which – unlike what happened for oil – prevent the creation of a global natural gas market protected by a single producer cartel.
This is why there is no OPEC for gas and this is particularly the reason why the oil exporters floundering in the financial crisis want to back the large gas extracting countries into a corner and later possibly expropriate them.
Hence Saudi Arabia’s and its allies’ current crackdown on Qatar poses a major economic problem for al-Thani’s Emirate, considering that all the ships flying the Qatari flag have been forbidden to dock in the Saudi and Emirates’ oil and gas terminal of Fujariah in the Persian Gulf.
For the time being the Emirate “punished” by Saudi Arabia has reassured its customers, especially the Asian ones and the major one, namely the Japanese Jera buying Qatari gas with long-term contracts, about the regularity of supplies, but nothing prevents delays and additional costs from occurring, which will soon affect Italy as well.
Furthermore the oil price fall had created a 98 billion US dollar deficit in Saudi Arabia’s public finances.
In a logic of looting, which Quran rules permit, the easiest solution is to put a strain on the richest opponent.
However, besides creating debt securities, Saudi Arabia will sell significant shareholdings of its oil companies, but above all of Saudi Aramco – and this is a central factor, as already mentioned.
Economic diversification is therefore an immediate need for Saudi Arabia and this explains most of the current internal conflicts among the “Seven Sudayri” of the Al Saud family, who have been ruling and deciding the fate of much of the Arabian peninsula since the time of the Wahhabi uprising.
However let us continue with the requests made by Saudi Arabia and its allies to Qatar.
Again to continue the discussion of “request” 5 to Qatar, we are talking about 59 individuals and 12 institutions which, according to Saudi Arabia, support, organize and fund terrorism.
The list of organizations obviously include the charities linked to al-Thani’s family, but there are also Saraya al-Ashtar, an organization of “occasional terrorists” linked to Hezb’ollah in Bahrain; the “February 14 Coalition”, again operating in Bahrain in favor of the Shiite majority in the country; the “Resistance Brigades”, again active in Bahrain; Saraya al-Mukhtar, a Shiite League operating in the al-Khalifa’s kingdom, and finally Harakat Ahrar Bahrain.
Judging from this list, it seems that Daesh-Isis is not a terrorist organization and the same holds true for al-Qaeda.
That is true, but they are Sunni organizations.
Moreover, a few days ago the British media published very compromising documents on the Saudi leaders’ funding to all jihadist terrorist organizations.
Again according to the latest data, the money spent by the Saudi ruling class to spread Wahhabism (and Salafism) in the world – both ideological foundations of contemporary jihad – is currently at least 5.2 billion US dollars.
Hence the oil powers are brutally demanding Qatar, the world’s gas leader, to extradite “terrorists” (but only the Shiite ones) and not interfere in domestic affairs or grant citizenship to Saudi, Egyptians and Emirates’ citizens who are wanted in their countries of origin.
These are requests 7 and 8 of the cahier de doleances issued by Saudi Arabia and its allies, also supported by the short-sightedness of the US intelligence services.
However, it is now well-established that in 1996 the Qatari royal family hosted and protected Khalid Sheik Mohammed, thus saving him from a US arrest warrant issued against him who is considered one of the “masterminds” of the 9/11 attack.
It has also been ascertained that a member of al-Thani’s family provided a safe cover in Doha to Al Zarkawi, the founder of al-Qaeda in Iraq, during his many transfers to and from Afghanistan.
Later the Iraqi Prime Minister, al-Maliki, openly accused Qatar of backing al-Baghdadi’s Caliphate.
However, why is Qatar supposed to support Daesh-Isis, mainly funded by its Saudi arch-enemy?
Simply because the Syrian-Iraqi Caliphate perpetrated at least three attacks on the Saudi territory in 2015, 2016 and 2017, for which it duly claimed responsibility.
As to request 9, Saudi Arabia and its allies – supported by the United States that found out that the country organizing terrorists is only the Shiite Iran – oblige Qatar to suspend any aid to their internal political enemies hosted by the Qatari Emirate and immediately inform the Sunni authorities (indeed Qatar, too, is strictly Sunni).
Moreover, Saudi Arabia and its allies ask Qatar to align itself with Saudi Arabia and with the other signatories of the diktat list at “economic, political, social and military” levels, following the indications of the Treaty reached between Qatar and Saudi Arabia in 2014.
In particular, the above mentioned Treaty regards Qatar’s end of money and weapon supplies, as well as logistical support, to groups and individuals hostile to Saudi Arabia in Yemen, Egypt and in the various Gulf Countries, obviously including Saudi Arabia.
The 2013 and 2014 agreements were secret agreements, but the topic is primarily the fight against the Muslim Brotherhood, which is now secretly operating in Saudi Arabia and throughout the Gulf – and listens on al- Jazeera the sermons of Shaykh al-Qaradawi, the most authoritative theoretician of the Muslim Brotherhood.
It is worth recalling that it was exactly a Saudi university professor of the Muslim Brotherhood who radicalized Osama bin Laden who, until then, had been a cheerful Westernized young Saudi tycoon.
The list of the thirteen requests ends with two recommendations: firstly, to undergo monthly supervision during the first year and, for the following ten years, to be monitored, again on a yearly-basis, and anyway decide on the list of the thirteen requests within ten days.
Obviously Qatar, which so far has not accepted the thirteen requests – has immediately turned to Turkey, governed by the AKP, a party born from a rib of the Muslim Brotherhood, and to Iran.
As is well-known, the United States initially supported the Saudi requests – although it later remembered that its central command for the whole Middle East was in Qatar, at the al-Udayd base.
If Qatar loses its tug-of-war with Saudi Arabia and its allies, its large financial reserves will be hoarded by Saudi Arabia to back its project for stabilizing State budgets and rapidly achieving economic diversification, which is at the core of the new King Muhammad al-Salman’s policy line.
Qatar has a sovereign fund of 355 billion US dollars and owns 30 billions worth of securities and shares, as well as an unknown, but definitely huge amount of other investments outside the Emirate.
Moreover, the Saudi royal family pays a high price – with a public debt that would have forced Saudi Arabia into default by 2018 – for the huge funds and loans granted to terrorist organizations in Syria, Yemen and Iraq – all jihadist militias now out of the new balance of power and obviously defeated by the new connection between Russia, Iran, Syria and, in the future, Turkey.
Furthermore, in an already problematic situation, the bloody suicide rush to forcedly reduce oil prices – mainly targeted against the US shale oil – has depleted the public finances and the private incomes of the Wahhabi Kingdom.
Hence, with his victory, President Trump – who played many of his electoral cards precisely on the North American economic recovery to be funded with “unconventional oil and gas” – as shale is officially called – has unintentionally triggered off a tough internal power struggle within the Al Saud family.
The first faction wants to rebuild an effective relationship with Russia and China, so as to stabilize prices and, in the long run, stop pegging the Saudi oil to the US dollar, which will shortly be only the financial instrument of the globalization of North American shale oil – a direct competitor of the Saudi one.
On the contrary, the opposite faction wants to preserve the already strong relationship between Saudi Arabia and the United States, so as to use the US economy as a carrier for the increasingly necessary and quick diversification of the Saudi economy, which is still heavily oil-dependent.
A factor linked to this new US-Saudi bilateralism is also the Saudi pressure against the New Silk Road of China, which is currently the number one enemy of US geopolitics and that the pro-American Saudis want to drive away from all the Gulf countries.
Conversely, it is almost useless to note that Iran has always been an essential passage point of the One Belt and One Road initiative (OBOR) designed by China.
It is also worth recalling it was Qatar, jointly with Iran, to open the first yuan “exchange centre” throughout the Middle East on April 14, 2015.
In addition to the above-mentioned monetary exchange and clearing centre for the Chinese and Middle East currencies – and it should be noted that yuan-denominated oil contracts between China and Iran are already in place – the Industrial and Commercial Bank of China also operates in Qatar.
If the yuan (and the ruble) became the new benchmark for gas and oil, the US dollar good days would be over since it could no longer lay onto the US-dollar denominated international trade the imbalances and asymmetries of public debt (which, including households’ and companies’ debt, accounts for 345% of the US GDP) and of its trade deficit.
“The dollar is our currency, but your problem” as a FED Governor said to his European counterparts.
Meanwhile, the new Saudi king, Muhammad bin Salman, is planning and designing a new 2 trillion US dollar sovereign fund, with a view to putting an end to the Saudi oil-dependence “within the next twenty years.”
Again according to the pro-American faction of the al-Saud family, the new sovereign fund is expected to invest half of its capital abroad, obviously without ever affecting Aramco, the world’s first oil producer and second holder of world reserves.
Said faction does not show any particular problem with oil price fluctuations, as has already demonstrated by trying – in vain – to push the US shale oil out of the market.
If the oil price increases, there will be more money available to Saudi Arabia for stepping up economic diversification. Even if the oil price decreases there would be no problem: the Saudi oil has the lowest unit extraction cost and the country will always be in a position to sell its products on the fastest-growing and most liquid market in the world, which is currently the Asian one.
Once again Qatar’s primary role in the Japanese and Chinese energy system is very annoying for Saudi Arabia.
Everything will change in the Middle East when, at the end of hostilities in Syria, Israel shall face a number one enemy, namely Iran, which is currently strengthened by the new balance of power prevailing in Syria (and in the Lebanon) and shall also come to terms with what is increasingly becoming the “lesser evil”, namely Saudi Arabia’s Wahhabism.
Can Erdogan repay the people’s trust?
The Turkiye nation has concluded the most important election in the country’s modern history. The people of modern Turkey came to determine their destiny at a time when their national economic condition is at a very deplorable level. The depreciation of the lira against the dollar has made the cost of goods and the cost of living more expensive. Inflation is now rampant in the country. Economists say inflation reached 85 percent last year.
The country’s currency, the lira, has fallen to a tenth of its value against the dollar over the past decade. Abnormal inflation causes the prices of goods to rise. Imports cost more as the lira depreciates. On the other hand, 11 provinces in Turkey are struggling to deal with the shock of two earthquakes recently. More than 50 thousand people died in this earthquake.
Despite this severe national crisis and economic instability, the majority of the Turkish people have not lost faith in Erdogan. This is an amazing event. Turkey’s 2023 national election reinstated Recep Tayyip Erdoğan, the sultan in power for the past 20 years, as president. On the other hand, the main challenger, the presidential candidate of the Nations Alliance and the leader of the secular Republican People’s Party (CHP), Kemal Kilizdarglu, was defeated.
Erdoğan was elected the first mayor of Istanbul in 1994. At that time, he took the initiative to solve various problems that arose in Istanbul due to rapid population growth, such as air pollution, waste collection, and a shortage of clean water. However, after four years, he had to stand in court for reciting a controversial poem. Erdogan was sentenced to four months in prison for spreading religious hatred. Basically, this event was the unforgettable beginning of the significant public opinion formation behind his rise.
Recep Tayyip Erdogan took power as the country’s prime minister in 2003. The people of Turkey trusted him in the 2018 elections as well. Recep Tayyip Erdogan has been elected President of Turkey for the third consecutive term. He will lead the country in the international arena for the next five years. Turkey will create a new equation in geopolitics. An experienced Erdogan will negotiate well with international actors.
Erdogan comes from the conservative political camp. He entered politics with the Salvation Party of political guru Nazimuddin Erbakan. In 1976, he was elected head of the Beyoglu region of the youth wing. The National Salvation Party was headed by Nazimuddin Erbakan. He later served as Prime Minister of Turkey in 1996–97.
Modern Turkey emerged as a secular state under Mustafa Kemal Atatürk in the 1920s. Erdogan created a new national manifesto with a lot of new energy, new plans, and a new national manifesto in that country. The first decade of his AK Party rule saw democratic reforms in Turkey. It had to be done because of the country’s desire to join the European Union. During this time, Erdogan was praised by liberals at home and abroad for reducing the authority of the army in the country and working to protect the rights of women and minority ethnic groups. However, Erdogan was criticized for becoming more authoritarian over the next decade. According to many, Erdogan has exacerbated divisions in Turkey.
Basically, he became popular in the Muslim world by expressing his anti-US and especially anti-European attitude in the polls, winning the hearts of the voters, and developing relations with Muslim countries. He converted Turkey from a parliamentary system to a presidential system in 2014. According to the opposition, Erdogan made such changes in the regime to enjoy sole power. Erdogan’s supporters regard him as ‘fatherly’, but opponents consider him an ‘authoritarian’ ruler. Its reflection can be seen in the international environment. During Erdogan’s regime, on the one hand, the distance between Turkey, an important member of NATO, and its allies, the United States and Europe, increased. At the same time, the closeness is increasing with anti-Western Russia and China.
Jeffrey Mankoff, an analyst at the Washington, DC-based Center for Strategic and International Studies, said, “Many officials and political leaders in Western countries are upset with Turkey’s Erdogan. They expressed disappointment in him. They believe that Erdogan is the main reason for Turkey’s growing distance from the West. He took everything personally and walked the path of cheap popularity.’
Therefore, with Erdogan ruling Turkey for the past 20 years, there has been a major change in Turkey’s foreign policy as well as socio-economic development. As a result of his long rule, he made many enemies and allies at home and abroad. Now it’s time to just watch, as Turkey’s economy is also seen as a big factor in this election. Will Erdogan be able to restore Turkey’s conventional economy, and how will he repay the public’s trust? These questions have become important.
The 32nd Arab League meeting will have a far-reaching impact
The Arab League is an alliance of states that currently has 22 member states in Northern Africa and on the Arabian Peninsula, which belongs geographically to Asia. All member countries together cover an area of 13.15 million km² (8.7% of the world’s inhabitable area). Significant parts are desert regions such as the Sahara and the Rub al-Khali sand desert. With about 456.52 million inhabitants, the area is home to about 5.8 percent of the world’s population.
On October 7, 1944, a “Protocol of Alexandria” was signed as a loose union. After elaborating on the ideas, the Arab League was founded the following year on 11 May 1945. The first member states were the kingdoms of Egypt, Iraq, Saudi Arabia, and Yemen, as well as Lebanon, Syria, and the then Emirate of Transjordan.
The history of the Arab League since then has been marked by numerous political and military conflicts in the region. In the immediate post-war period, the growing Jewish population in Palestine played a major role. This led to the division of Palestine into a Jewish and an Arab state in 1949. With the withdrawal of the British Allies, there was also a lack of an overarching protective power and serious and recurrent conflicts with Israel arose.
The recent 32nd Arab League Meeting held in the magnificent city of Jeddah, Saudi Arabia, has drawn to a successful close, leaving a profound impact on regional politics. High-ranking officials and diplomats from Arab nations gathered to discuss pressing issues and forge a path toward greater cooperation and unity. The meeting, which took place against a backdrop of evolving geopolitical dynamics, produced key decisions that are poised to shape the future of the Arab world.
Hosted by the Kingdom of Saudi Arabia, a staunch advocate of Arab solidarity and stability, the summit aimed to bolster inter-Arab relations and address the region’s most pressing challenges. Under the gracious patronage of His Majesty King Salman bin Abdulaziz Al Saud, leaders and representatives from across the Arab League engaged in constructive dialogue, fostering an atmosphere of camaraderie and shared vision.
One of the major highlights of the meeting was the unanimous agreement on establishing a joint counterterrorism center. This significant step underscores the Arab League’s commitment to combating terrorism and maintaining regional security. The center will serve as a platform for intelligence sharing, coordinated efforts, and capacity building among member states, further enhancing the collective response to the ever-present threat of extremism.
In addition to counterterrorism initiatives, the Arab League delegates focused on revitalizing the Arab Peace Initiative, which has been instrumental in pursuing a just and lasting resolution to the Israeli-Palestinian conflict. The participants expressed their unwavering support for the rights of the Palestinian people and called for renewed international efforts to resume meaningful negotiations. The Arab League’s stance sends a clear message that a comprehensive and equitable solution is imperative for sustainable peace in the region.
Moreover, discussions during the summit centered on the ongoing crises in Libya, Syria, and Yemen. Arab League members pledged increased support and cooperation in finding political solutions and bringing stability to these war-torn nations. The delegates affirmed their commitment to the principles of sovereignty, territorial integrity, and non-interference, emphasizing the need for inclusive dialogue to end conflicts and restore peace.
The political impact of the Arab League Meeting cannot be understated. It signifies a renewed commitment to Arab unity and cooperation amid a rapidly changing regional landscape. The decisions made in Jeddah hold the potential to shape the political dynamics of the Arab world, ensuring stability, security, and prosperity for its nations and peoples.
The meeting also provided an opportunity for member states to strengthen bilateral relations and engage in fruitful discussions on areas of mutual interest. In the spirit of constructive diplomacy, numerous side meetings and cultural exchanges took place, fostering greater understanding and cooperation among Arab nations.
As the Arab League Meeting drew to a close, the host nation, Saudi Arabia, expressed gratitude to all participating countries for their valuable contributions and emphasized its commitment to further collaboration in the future. The outcomes of the meeting will be diligently pursued and implemented, underlining the shared determination of Arab nations to overcome challenges and seize opportunities for progress.
This time the participation of Syria was a milestone, it happened after 12 years of absence. Another important aspect was the attendance of Ukrainian President Zelenskyy. These two important aspects will have far-reaching impacts on regional politics and global peace, stability, and security.
Regional Connectivity in the Gulf Cooperation Council
The Gulf Cooperation Council consists of a region of some of the most formidable economies in the world that enjoy vast oil and gas reserves which have brought them immense wealth. The GCC have combined oil reserves of about 497 billion barrels which is 34% of the world’s supply, according to King Abdullah Petroleum Studies and Research Center. However, these countries also share similar problems, which have become increasingly apparent with the fluctuation and gradual decline in global oil prices as well as the impacts of climate change. Since gulf countries share similar economic issues, it means that they should take collaborative efforts to curb these problems as well. Enhancing regional connectivity is one way to achieve this. It will help improve the economies of all GCC member states in the future and allow them to connect with larger markets.
Over the years, several steps have been taken by gulf countries to improve regional connectivity. For instance, since 1980s, there have been plans and several attempts to create a common GCC currency termed as Khaleeji or Dinar. The currency is expected to be valued at around 1 USD = 1.984 KHJ. Although since then, Oman and the UAE have withdrawn from the plans until further notice, this idea still enjoys popularity and GCC governments are still considering it. The region already meets many of the necessary criteria for a common currency as all seven of the countries have very similar economies, values, cultures, and histories. A common currency would bolster trade flows between the countries by removing border barriers, which will result in cheaper goods and services, particularly of healthcare, tourism, and education, and economic well-being of all the countries involved as a result of increased regional connectivity. A common gulf currency would also reduce exchange-rate uncertainties. Tourists and citizens would not need to constantly exchange currencies when visiting different countries in the region. A common currency will also reduce barriers for the transfer of people between gulf countries which will make it easy to exchange skilled labour, thus decreasing unemployment overall and also producing more opportunities for highly educated domestic workers being produced every year. It will also lead to greater economic integration in the GCC as regional connectivity grows stronger.
GCC countries have also begun to seriously explore strengthening transport links. After careful thought and deliberation, gulf countries have agreed to build a 2177km GCC railway in 2009 stretching from Kuwait, entering Saudi Arabia, connecting Bahrain as well as Qatar, then moving through the UAE and ending in Oman. The railway will also connect vast networks of existing and planned railway networks in Saudi Arabia, the UAE, Qatar, and Oman, further improving regional connectivity in the gulf. The project is expected to be completed by 2025 and is expected to drastically improve trade costs, travel times, and connectivity between ports and cities. It will boost trade flows across the bloc and attract foreign direct investment. The GCC also aims to establish a common market and joint Customs union to further strengthen regional connectivity, which will result in greater economic growth and integration. The Saudis have already started expanding their already vast network of railway tracks. They have completed the al-Qurayyat station which connects Riyadh to Jordan and the rest of northern Saudi Arabia, stretching across 1215km. Moreover, the kingdom completed the Haramain speed train at Rabigh Station which connects the Holy cities of Makkah and Madinah through a 450 km track. The UAE has also expanded its existing railway infrastructure, especially with a national rail network connecting 11 cities with trains travelling 200km per hour. Moreover, the Qataris have also built an extensive railway network as part of their efforts to organize the FIFA World Cup last year which consists of 26 projects. These railway lines will be connected with the GCC railway and they will boost regional connectivity in the region, facilitating the transport of people, information, and goods.
Other measures that the GCC could take to enhance regional connectivity would be to take steps to incorporate long term strategies of each member. All GCC member states have similar long-term goals as outlined by Saudi Vision 2030, Bahrain Vision 2030, Kuwait Vision 2035, UAE Vision 2030, Qatar Vision 2030, and Oman Vision 2040. The crux of these plans is to rid GCC states of oil dependence, combat climate change, and increase tourism and entertainment for more economic diversification. Integrating these efforts will increase collaboration, which will duly increase regional connectivity, resulting in more efficient execution of these plans. Moreover, other approaches include easing or eliminating border restrictions to enable free movement between GCC states for citizens and tourists. A major factor limiting trade is border restrictions as trade is less likely to happen if there is a border in between, even if the distance is negligible. If border restrictions are eliminated, then trade will become more frequent and there will be greater regional connectivity between adjacent countries. Furthermore, tourists will also be able to easily access other GCC member states and hence spend more money, cross border competition between markets would also increase, leading to more competitive prices, and finally, it will also reduce price differentials for people who live in areas that are near borders.
For this to happen, GCC countries need to improve diplomatic relations among themselves. This is particularly true after the diplomatic tensions between Qatar and Saudi Arabia between 2017 and 2021 which had forced the GCC nation to seek reroute flights and vessels. Such diplomatic crises will harm prospects for regional connectivity in the GCC and therefore need to be avoided. Moreover, the GCC’s economic growth is expected only at 3.2%, which is much lower than the 7.3% figure estimated in 2022. The figure is also a decline from the 5.8% growth in 2022. Furthermore, oil prices had been declining since many years, which poses a danger to the economies of the GCC. Although a cut in output by OPEC+ member states will boost oil prices in the short-run (they already helped oil prices cross $80 per barrel), this is not sustainable for the GCC economies. Therefore, GCC countries face a range of serious challenges when it comes to regional connectivity. However, the opportunities far outweigh the challenges and the GCC enjoys potential to become an economic powerhouse in the region.
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