GCC grows stronger together
5 December 2024
Commentary
Colin Foreman
Editor
Read the December 2024 edition of MEED Business Review
The 2020s have so far been a tumultuous decade, with ongoing conflicts in the Levant and Ukraine still dominating the global news cycle.
The decade began with the Covid-19 pandemic battering economies, and with many nations struggling to recover, populist governments with protectionist policies have shunned globalisation.
The decline of US-led globalisation has coincided with the rise of China as the world’s largest economy, and over the past decade Beijing has begun to assert itself more actively on the international stage with its Belt and Road Initiative.
At the same time, climate change has become increasingly difficult to deny.
As the new world order establishes itself, it poses challenges and opportunities for the GCC. Complex issues will not be resolved quickly, and the GCC has chosen to confront them together. After signing the Al-Ula Accords in January 2021, there has been a renewed sense of togetherness across the GCC that has manifested itself in several important ways.
Simply exporting oil from a port to international markets no longer works
Politically, the GCC has more weight on the international stage if it acts together. Economically, as the GCC diversifies away from exporting hydrocarbons with the development of new industries and services, it will need to be better integrated. Simply exporting oil from a port to international markets no longer works. The GCC economies of the future need to be intertwined with their neighbours and global supply chains.
This requires more infrastructure. One article of the Al-Ula Accords commits the GCC to develop its railway network.
Regional integration also supports the fight against climate change. For power grids to operate more efficiently, the GCC needs to connect its electricity grids so that when areas have a surplus of power, they can support other areas.
These projects will build resilience, which should shield the GCC from much of the upheaval the world faces today.
Must-read sections in the December 2024 issue of MEED Business Review include:
> AGENDA:
> Cooperation strengthens Gulf markets
> Transport links stitch GCC together
> CURRENT AFFAIRS:
> Arab-Islamic summit demands Gaza ceasefire
> Kuwait hopes new oil minister can push projects forward
|
INDUSTRY REPORT: |
> CONSTRUCTION: Saudi Binladin Group makes a comeback
> DATA CENTRES: Khazna expects to build more 100MW-scale data centres
> GREEN HYDROGEN: Abu Dhabi bullish on green hydrogen
> INTERVIEW: Sener eyes role in evolving Middle East infrastructure
> LEGAL: Navigating energy disputes through international arbitration
> BAHRAIN MARKET REPORT:
> COMMENT: Bahrain’s projects sector drags on economy
> GOVERNMENT & ECONOMY: Bahrain’s economic growth momentum falters
> BANKING: Bahrain banking works to scale up
> OIL & GAS: Bapco Energies sets sights on clean energy goals
> POWER & WATER: Manama jumpstarts utility sector
> CONSTRUCTION: Bahrain construction struggles to keep pace
> INDUSTRY: Alba positions for the future
> MEED COMMENTS:
> Riyadh may turn to different CEOs to run its projects
> Warming Riyadh-Tehran ties herald regional shift
> Decarbonising steel is hard to resist
> Saudi Arabia power sector unlikely to disappoint
> GULF PROJECTS INDEX: Gulf projects market returns to strong growth
> OCTOBER 2024 CONTRACTS: Region sets stage to break records this year
> ECONOMIC DATA: Data drives regional projects
> OPINION: Middle East faces a reckoning
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
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