The UAE & Qatar could make every citizen a millionaire overnight
How? By selling their assets abroad & distributing the proceeds equally
But Abu Dhabi, Doha & their neighbours in the GCC arenβt following a sell-and-distribute strategy
So how are they using their wealth?
1/7
How? By selling their assets abroad & distributing the proceeds equally
But Abu Dhabi, Doha & their neighbours in the GCC arenβt following a sell-and-distribute strategy
So how are they using their wealth?
1/7
The GCC is investing in American tech companies, English football clubs, Egyptian real estate, African mines & Turkish bank deposits
4 of the worldβs top 10 funds are from the GCC
The goal of the investments?
- Economic diversification
- Soft power
- Petrodollar diplomacy
2/7
4 of the worldβs top 10 funds are from the GCC
The goal of the investments?
- Economic diversification
- Soft power
- Petrodollar diplomacy
2/7
Diversification
Oil has created a social contract: economic prosperity in exchange for loyalty to an absolute monarch
Its windfall has funded the pact, but its price is volatile
Investments can generate income that might offset some oil losses
3/7
x.com
Oil has created a social contract: economic prosperity in exchange for loyalty to an absolute monarch
Its windfall has funded the pact, but its price is volatile
Investments can generate income that might offset some oil losses
3/7
x.com
Soft power
Saudi is spending on a rebrand to swap social conservatism for a more open image
Qatar has invested in Al Jazeera & the World Cup
The UAE has Dubai β a destination of choice for many with its mix of economic prosperity & social openness
4/7
bloomberg.com
Saudi is spending on a rebrand to swap social conservatism for a more open image
Qatar has invested in Al Jazeera & the World Cup
The UAE has Dubai β a destination of choice for many with its mix of economic prosperity & social openness
4/7
bloomberg.com
Turning GCC hydrocarbons into geopolitical muscle
That's not new. Examples:
- 1970s: Oil embargo
- 1980s: Bankrolling Iraq against Iran
- 1990s: Rewarding Egypt for supporting Kuwait against Iraq
And that has continued, as data from @HTAlhasan & @CamilleLons show (image)
5/7
That's not new. Examples:
- 1970s: Oil embargo
- 1980s: Bankrolling Iraq against Iran
- 1990s: Rewarding Egypt for supporting Kuwait against Iraq
And that has continued, as data from @HTAlhasan & @CamilleLons show (image)
5/7
There's even an excellent book on petrodollar diplomacy and GCC economic statecraft, by @ProfessorKaren
6/7
6/7
The risk? A sustained drop in the oil market could suddenly deprive many countries addicted to GCC petrodollar support of essential funds
Read the full article below
7/7
bloomberg.com
Read the full article below
7/7
bloomberg.com
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