The Intelligence from The Economist End-Gulfed: Preparing for a post-oil future
Feb 14, 2023
Greg Karlstrom, The Economist's Middle East correspondent, provides keen insights into the Gulf region's shift towards economic diversification and the challenges of youth unemployment. Meanwhile, Henry Trix, an expert on market dynamics, discusses the rapid rise of BYD as a competitor to Tesla in the EV landscape, highlighting their unique strategies and manufacturing prowess. Amid these serious discussions, a humorous exploration of environmental issues, such as the bizarre 'Wet Wipe Islands' in the Thames, adds a lighthearted touch.
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GCC's Shifting Social Contract
- The Gulf Cooperation Council (GCC) states' traditional social contract involved distributing oil wealth to citizens.
- This model is changing as the GCC prepares for a post-oil future.
Reasons for GCC Diversification
- The Gulf states are diversifying their economies due to the long-term unsustainability of relying on oil.
- The war in Ukraine has provided a financial windfall, enabling them to pursue this diversification.
Examples of GCC Reforms
- Saudi Arabia and the UAE are leading the change with social reforms like allowing women to drive and loosening alcohol laws.
- Economic reforms include introducing taxes and reducing subsidies.